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4.3 What are the requirements for renewable energy facilities to be connected to and access the transmission network ( s )?
In England , the Conditions of Electricity Transmission Licences ( CETL ) provides the standard terms of the licence , and the CUSC provides the commercial framework between NGESO and users of the National Grid .
Generators seeking access to the National Grid must make an application under the CETL to NGESO . If the application meets the requirements of the CETL and CUSC , NGESO must make an offer to the applicant as soon as practicable , offering connection to the National Grid . The offer of connection comprises :
■ a construction agreement in respect of the relevant connection facilities ;
■ a connection agreement governing the relationship between the generator and NGESO ; and
■ an accession agreement to CUSC .
4.4 What are the requirements for renewable energy facilities to be connected to and access the distribution network ( s )?
The UK ’ s distribution networks are operated by two sets of operators : 14 distribution network operators ( DNOs ), who operate larger distribution networks ; and independent distribution network operators ( IDNOs ), who operate smaller networks within areas covered by DNOs .
In order to be connected to and access distribution networks , the renewable energy facility must apply to the relevant DNO or IDNO in accordance with the requirements of the Electricity Act . The DNO or IDNO must then offer connection terms to the facility as soon as practicable , subject to certain exemptions .
4.5 Are microgrids able to operate ? If so , what is the legislative basis and are there any financial or regulatory incentives available to promote investment in microgrids ?
Microgrids may operate in England & Wales and are subject to the same legal and regulatory regime as distributed renewable energy facilities .
Until 2019 , generators using microgrids were able to benefit from the FiT scheme , now replaced by the SEG scheme ( see question 3.5 for more detail ).
4.6 Are there health , safety and environment laws / regulations which should be considered in relation to specific types of renewable energy or which may limit the deployment of specific types of renewable energy ?
The development of renewable energy projects requires infrastructure , and all construction projects in the UK must comply with the Construction ( Design and Management ) Regulations 2015 , which form the key health and safety framework for the construction industry . More generally , the UK also has extensive health and safety regulations to ensure employers are responsible for the health and safety of their employees and those impacted by their business .
Whilst environmental laws generally encourage renewables development ( see question 1.1 ), the planning consent process ( see question 4.1 ) requires the consideration of environmental and social matters , and most utility-scale projects will also require an environmental impact assessment to assess the environmental risks of the project . Applications for large-scale projects will not be permitted if in an Area of Outstanding Natural Beauty or in a National Park , and wind projects are subject to further scrutiny in respect of protecting wildlife and ( for offshore projects ) marine conservation .
52 Storage
5.1 What is the legal and regulatory framework which applies to energy storage and specifically the storage of renewable energy ?
Electricity storage ( including the storage of renewable energy ) is currently treated as a type of electricity generation . Accordingly , the applicable legal and regulatory framework that applies to electricity storage is currently the same as that applicable to electricity generation . However , the Electricity Act does not currently include a specific definition of electricity storage ( although see below for further details in the Energy Security Bill ).
The provisions relating to generation licences ( and exemptions ), planning permission and construction described at question 4.1 also apply to electricity storage projects .
All electricity storage projects will also need a completed lease on satisfactory terms and relevant planning permission in relation to the land in which it is located and , in respect of battery storage projects , must comply with various UK , European and international standards on battery matters .
The Energy Security Bill contains measures to establish a licensing framework and regulatory system carbon dioxide transport and storage infrastructure , and which seek to remove obstacles for developers of battery-based and pumped hydro energy storage projects , including by clarifying storage as a distinct subset of generators under the Electricity Act .
5.2 Are there any financial or regulatory incentives available to promote the storage of renewable energy ?
Energy storage systems benefit from the FiT scheme ( provided applications have been submitted prior to 31 March 2019 ) and the RHI scheme as described at question 3.11 as well as , for storage co-located with a renewable asset , SEG payments .
Additionally , in March 2021 , BEIS launched the Longer Duration Energy Storage Demonstration competition for up to £ 68 million to be awarded to technologies that can demonstrate the capability of first-of-a-kind energy storage facilities with a longer duration .
5.3 What are the main sources of financing for the development of energy storage projects in your jurisdiction ?
The financing of energy storage projects on a standalone , limited recourse basis remains at a nascent but rapidly developing stage in the UK . In a traditional project financing the relevant asset is limited in its application – which suits risk averse debt providers , whose return is typically limited to the interest on their loans – whereas a battery storage project is typically granted the flexibility to perform a variety of services ( which suits shareholders whose return on their investment is , in theory , unlimited ). For developers , ideally the covenant package
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