Distributed Generation Connection Guide:

Contents

Contents

Information Sheets
Decision Tree for Distributed Generation Connection Guides
Connection Process—Capacity Cut Off Points
Provision of Information: DNO Websites
Legislative and Regulatory Documents Hierarchy

Distributed Generation Connection Guide

An Introduction
Is this the right Guide for my project?
Changes to Regulations

A: A Guide to the GB Power Sector

B: The Role of Distributed Generation

C: An Overview of Getting connected

D: The Connection Application

E: Costs and Charges

F: Selling Electricity
Smart Export Guarantee (SEG)
Contracts For Difference
Glossary

References

Revisions
 Distributed Generation Connection Guide:
Information Sheets
The following pages contain a number of information sheets. These bring information that is
contained throughout the Guide into a single page. The information sheets include:

• Decision Tree for the Distributed Generation Connection Guide—to help you to identify
whether this is the right Guide for you.

• Capacity cut off points—a diagram illustrating the impacts that the generation capacity of
your generating equipment has on the requirements and opportunities for your project.

• Provision of Information: DNO websites—a summary of the information you can expect to
find on DNO websites.

• Legislative and Regulatory Document Hierarchy—an illustration of document hierarchy,

and list of key documents.

You will find the Guide introduction and contents after these information sheets.

i
 Decision Tree for the
Distributed Generation Connection Guide
There are a number of Distributed Generation Connection Guides, each with a corresponding
‘Summary’ guide. The purpose of the summary guides is to act as a quick check, providing only
the most useful information in a condensed format. This flowchart guides you to the most
relevant Connection Guide for the Distributed Generation you are planning to install. The Guides
can be found on the Distribution Generation section of the ENA website.

Size of your generating unit within any single premises

Does your Power Generating Module (PGM) (or the aggregation of modules if there are more than one)
have a capacity of 16A per phase or less, and is it connected at low voltage? In other words:
• Three phase—generation capacity of 11.04kW or smaller and connected at 400V
• Single Phase—generation capacity of 3.68kW or smaller and connected at 230V

Yes No

Number of premises Size

In how many premises are you Does your Power Generating
planning to install Micro-generators: Module have a registered capacity
• within 500m of each other; or of less than 1 MW ?
• with the same postcode (ignoring
No
the final two letters)? Yes
Does your Power Generating
Module have a connection point
1 More than 1 below 110 kV ?
No
Guide for EREC Guide for EREC Yes
G98 projects for G98 projects on Guide for EREC G99
Guide for EREC G99 Type A Types B to D Power
Single Premises Multiple Premises Power Generating Modules Generating Modules

Projects can no longer connect under EREC G83 and

EREC G59.
Simplest
process Most complex process

Examples of Distributed Generation that is 16 A per phase or less

PV system: If you are installing solar panels on the roof of
your home (or another similar building), it is likely that your
project will be less than 16 A per phase, particularly if your
array is about 30 m2 or less; or about 18 panels or fewer.

Wind: Many small wind turbines

are also less than 16 A per phase. For example:
• QR5 turbine: Rated 6.5 kW with a rotating section of 5 m height
• Bergey wind turbine: Rated 10.0 kW with a diameter of 7 m

Combined Heat and Power (CHP): A micro-CHP plant rated 6 kW (3-phase) (the size of a big
dishwasher 0.8 x 1 x 1 m) could have a thermal output of 18 kW.
ii
 Connection Process: Capacity Cut Off Points
The tasks that you have to undertake to get The table below illustrates some of the
connected vary with the capacity of the impacts that the capacity of your generating
generating plant. In general, the bigger the units have on the connection process and
generator, the more complex the connection requirements on you.
requirements.

Connection
Size Definitions
Process
Generation Incentives
England Metering
Single Three North South Licencing Schemes
and
Phase Phase Scotland Scotland
Wales
Smaller Covered by G98 Smaller
Power if connected at Power
Stations low voltage Stations
(230V or 400V)
and type tested.

Usually SEGs (Smart

will have Export
3.6kW Non-Half Guarantees)
Hourly if technology
11.04kW
metering. is eligible.
Power Generating Facility
Power Generating Facility owner
may choose to have an Do not need
agreement with NGESO, in order a generation
G99 Type A to make use of the transmission licence.
system or to participate in the 30kW
balancing market.
50kW

1MW
Power Generating Modules should
G99 Type B refer to Type D if connection voltage
5MW
is > 110kV.
10MW Must have
G99 Type C CFD
30MW Half (Contracts
Large Power Station Hourly
Must hold an for 50MW
50MW Must hold a metering.
agreement with Medium Difference)
generation Projects in
NGESO—BEGA or Power
licence, unless the order of
BELLA. Station
exempt. several MW
100MW 100MW
G99 Type D Large Power station Must hold a
Larger Must hold a Bilateral Embedded generation Larger
Power Generation Agreement (BEGA) licence. Power
Stations with NGESO. Stations

Section C Sections C and D Section D Section E Section F

iii
 Provision of Information: DNO Websites
There is a great deal of published information available from your DNO that can be helpful for
your project planning. Some of the most useful sources are summarised here, and links to the
DNO websites are in the table below.

Long Term Development Statement (LTDS)

Covers the development plans for the network, and other information useful for prospective
developers. An introductory chapter is generally available on the DNO’s website and DNOs will
give access to the full document on request. These documents are updated every six months,
and published annually.

Connection Charging Documents

Statements and methodologies will be given for both connection charges and Use of System
(UoS) charges. This information may be included in a single document, or in several, and are
updated regularly. These are available on DNO websites.

Standards of Performance
Ofgem has set minimum performance standards for connections, both during and after their
construction. If your DNO fails to meet these standards, you may be entitled to receive
payment. Ofgem has guidance documents about these Standards on their website:
www.ofgem.gov.uk/licences-codes-and-standards/standards/quality-service-guaranteed-
standards

Distributed Generation “Work Plan”

The Incentive for Customer Engagement (ICE) exists to encourage DNOs to engage with and
respond to the needs of major connections customers (which includes generation customers),
and includes a requirement on DNOs to set out plans on what improvements they plan to make
in the next regulatory year, consisting of two parts. Part 1 covers plans for improvements for the
forthcoming year; and Part 2 reviews the progress in the previous year. Check your DNOs
Distributed Generation web pages.

Other Supporting Information Provided by DNOs

In recent years, there have been improvements to the information that DNOs provide, including:
• web portals and decision support tools/application hotline;
• capacity “heat maps”, indicating areas that can more readily facilitate connections;
• holding events such as “open surgeries” for Distributed Generation customers; and
• more details provided on outages (planned and historic).

Flexibility Services
In recent years, DNOs have been offering customers the opportunity to provide flexibility
services in an effort to control demand and generation on their networks. This can help to solve
congestion issues and free up spare capacity across the DNOs network. Flexible technologies
include batteries, solar plus storage, CHP, Electric Vehicles and other technologies. For more
information refer to the Local Flexibility Markets break out box in Chapter F of the Guides.

iv
 Provision of Information: DNO Websites
Active Network Management (ANM)
This is the process of using control systems to manage the real time output of Distributed
Generation in constrained areas. This technique can manage problems on the network such as:
• Thermal Constraints
• Voltage Constraints
• Fault Level
ANM is now been included in Business As Usual connection offers but may only be available in
certain sections of the network. For more information refer to your local DNO website.

Flexible connections
Connecting new generators to the distribution networks in constrained areas can require
reinforcement of the network with associated increased connection costs and waiting times.
DNOs can offer an alternative in the form of flexible connections. This involves acceptance of
constraints within the terms of the connection, such as a maximum export level or restricting
generation export under certain network conditions. Flexible connections can be used as a
temporary solution whilst awaiting the completion of the network upgrades or as a permanent
alternative to reinforcing the network. For more information visit you local DNOs website.

Embedded Capacity Register (ECB)

From July 2020, the System Wide Resource Register was renamed as the ECB in line with the
DCUSA change DCP 350. This register has been developed through the Open Networks project
and has been adopted by all DNOs. The register will provide information on generation and
storage resources greater than 1 MW that are connected, or accepted to connect to the
distribution network.

The register will also hold details of network reinforcements associated with new connections as
well as flexibility services. The DNOs are required to keep this register up to date. For more
information on the ECB visit your local DNOs website.

Region DNO Website

North Scotland, Southern England SSE Power Distribution www.ssepd.co.uk
South Scotland, Cheshire, Merseyside and SP Energy Networks www.spenergynetworks.com
North Wales
North East England and Yorkshire Northern Powergrid www.northernpowergrid.com
North West Electricity North West www.enwl.co.uk
East Midlands, West Midlands, Southern Western Power www.westernpower.co.uk
Wales, South West England Distribution
Eastern England, South East England, London UK Power Networks www.ukpowernetworks.co.uk
No area—IDNO GTC www.gtc-uk.co.uk

v
 Legislative and Regulatory Documents Hierarchy
The following diagram shows the legislative and regulatory documents in the power sector. These
are grouped by category, and where possible the relationship between documents is illustrated.
The documents have been colour coded by document category. The most relevant examples of
each documents are included in the boxes below.

EU LEGISLATION ACTS OF PARLIAMENT

EU
REGULATIONS LICENCES GOVERNMENT POLICY
NETWORK
CODES

AGREEMENTS RENEWABLE
CODES AND STATEMENTS GENERATION
INCENTIVES
TECHNICAL PERFORMANCE TARIFF
STANDARDS STANDARDS REGULATION

KEY: Indicates where a document feeds into or influences another.

Document
Acts Regulations Licences Policy EU Legislation
Category:
Agreements / Statements Code Standards

Tariff regulation Renewable Energy Programmes

ACTS OF PARLIAMENT: REGULATIONS: LICENCES:

• Electricity Act 1989 • Electricity Safety, Quality and Continuity • Generation
• Utilities Act 2000 Regulations 2002 • Transmission
• Energy Act 2004 (BETTA go-live • The Electricity (Standards of Performance) • Distribution
direction) Regulations 2015 • Supply
• Energy Act 2008 (FITs etc.)
• Energy Act 2013 (CfD etc.) CODES AGREEMENTS AND GOVERNMENT
• Balancing and STATEMENTS POLICY:
Settlement Code • Connection Agreements • The Clean Growth
EU LEGISLATION:
• Connection and Use • Charging Statements Strategy 2017
• EC No 714/2009
of System Code • The Distribution • Upgrading our
TECHNICAL STANDARDS • Distribution Code Connection and Use of Energy Systems:
• Engineering Recommendations • Grid Code System Agreement Smart Systems and
• Security and Quality of Supply • System operator – • Master Registration Flexibility Plan 2017
Standard (SQSS) Agreement (also 2018 update)
Transmission owner
Code (STC)
PERFORMANCE STANDARDS:
• Guaranteed standards and DG EU NETWORK CODES RENEWABLE GENERATION:
standards • Requirements for Generators • SEGs and CfD
• Demand Connection Code
• System Operation Guidelines PERFORMANCE STANDARDS
TARIFF REGULATION: (SOGL)
• Ofgem Price Controls • Guaranteed standards and DG Standards

vi
 Distributed Generation Connection Guide:
An Introduction

Who is this Guide for? • to describe the main factors affecting

This Guide is intended to help you, as a connection costs and ongoing charges;
developer or the prospective owner of • to highlight your options relating to your
Distributed Generation, to connect your connection works, identify different
generating unit to a distribution network in contracts relating to your connection
Great Britain. It may also be useful for and discuss some day-to-day operational
installers or manufacturers of distributed issues; and
generation equipment.
• to describe two key financial incentives
The types of generation that most frequently for Distributed Generation: Smart Export
connect to the distribution networks include: Guarantee (SEG) and Contracts for
• renewable energy projects; Difference (CFD).

• waste to energy projects; What is not covered in the Guide?

In addition to arranging a connection to the
• energy storage devices (e.g. batteries);
network, you will also have other issues to
and
address in order to get your project up and
• on-site generation and Combined Heat running. These include:
and Power (CHP) projects.
• Designing, installing and operating the
What is the aim of the Guide? generation installation
The main aim of the Guide is to provide a • Buying and selling electricity (beyond
‘route map’ of the processes for getting a SEGs and CFDs)
generation project connected to the
distribution network. The Guide provides an • Planning the project
overview of the connection process, as well as • Financing the project
more details on the application stage.
• Resolving local planning issues
The connection process involves discussions
These issues are outside the scope of this
and agreements between you and your
Guide, but you will need to about these in
Distribution Network Operator (DNO). Note
parallel with the connection process.
that the term ‘DNO’ as used in this guide
generally refers to both DNO and IDNO Note that this document covers the process
companies. This process is more likely to be for connecting generation to the distribution
successful if you and the DNO can networks in Great Britain. Northern Ireland
communicate effectively and understand each has different connection arrangements, for
other’s concerns. So, in addition to its main example different versions of Engineering
aim of providing a ‘route map’ of the Recommendations G98 and G99 are in use.
connection process, the Guide has a number For more information, refer to the Northern
of other aims: Ireland Electricity website: www.nie.co.uk
• to provide background information
about the GB power sector and the role
Distributed Generation has to play;

Page 1
 Distributed Generation Connection Guide:
An Introduction

The format of the Guide which are evolving and a number of issues are
under consultation. The Guide has tried to
This Guide has been written and formatted
capture the most up to date position at the
with you, the reader, in mind. In particular we
time of writing. However, for the most up to
think this Guide will be useful for customers
date information you should refer to key
with generation, installers and developers.
documents and organisation websites. Please
We have tried to make this Guide as clear and
see the reference section for more
easy to read as we can, bearing in mind that
information.
some of the issues discussed are technical and
complex. In particular: Governance of related Codes and documents
• Terms which may be unfamiliar are Many of the codes and other documents
defined or explained in boxes around described in this guide are governed in such a
the main text. way that any interested and materially
affected party can propose a change to the
• Key points and summaries are
codes and documents. This includes the
highlighted.
Connection and Use of System charging
• Text is emboldened for emphasis. arrangements (for both distribution and
• Where necessary the Guide transmission) and the Distribution and Grid
distinguishes between the arrangements Codes. There are also groups with Distributed
that apply in Scotland and those which Generation community and DNO
apply in England and Wales. This is representation where issues can be raised and
indicated with a Scottish flag. discussed which may lead to changes being
proposed.
• At the end of most chapters there is a
pointer on where to find more The overarching group to discuss commercial
information. and procedural issues associated with
connection is the ENA DER (Distributed Energy
Though this Guide is intended for the general Resource) Connections Steering Group. Any
public and should not require the reader to be issues you have for the Group should be
technical or familiar with the energy industry, raised through trade associations who are
please be aware that the topics covered here represented. Please note that practices
are technical and complex. It is therefore between DNOs may be different; for example
necessary to refer to such concepts as voltage where the connection requirements are
and power. Where possible, terms that may location specific or the connection risks and
be unfamiliar have been explained. the network characteristics are different.
Governance of the Guide
This Guide is a Distribution Code Review Panel
(DCRP) document. The DCRP will update the
Guide using similar processes it has for
updating other distribution related
documents.
There are many areas of regulation and
legislation relating to Distributed Generation

Page 2
 Distributed Generation Connection Guide:
Is this the right Guide for my project?

The process of connecting Distributed A “summary” version of each Guide,

Generation to the electricity distribution containing the minimum, essential
network varies depending on the size of the information from each chapter, is also
generation to be connected, and the specific available—refer to the ENA website.
technology to be used. In general, the larger The table on the next page includes a quick
the generation capacity, the more complex check for finding the right Guide for you. Read
the process. the information boxes for further explanations
The Engineering Recommendations that cover of terms that may be unfamiliar to you. Where
the connection of Distributed Generation to you are installing multiple asynchronous or
the electrical distribution network are: EREC inverter connected generating units, the
G98 (for smaller generation capacities less application process (ie EREC G98 or G99) is
than 16A per phase) and EREC G99 (for all based on the total installed capacity of the
other projects). These are described further in generating units. Where you are installing
the information boxes on the following pages. synchronous Power Generating Modules, the
application process (ie EREC G98 or G99) is
A number of a Guides have been developed:
based on the capacity of each generating unit.
• EREC G98 compliant units in a single If you are adding new generating units to an
premises; existing installation, refer to guidance on page
• EREC G98 compliant units in multiple 27.
premises within a close geographic
region;
• A guide for EREC G99 Type A Power
Generating Module
• A guide for EREC G99 Type B-D Power
Generating Modules; and

Important note: Generation projects can no longer connect under EREC G83 and G59.
Generation will only be allowed to connect under EREC G98 and G99, with an exception for
certain generators. For more information on this transition, refer to “Recent Changes to
Regulations” page—just before Chapter A.

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 Distributed Generation Connection Guide:
Is this the right Guide for my project?

Guide Criteria

Distributed Generation is compliant with

A guide for connecting Installation of one or
EREC G98 if:
Distributed Generation more Distributed
• It meets the size definition of Micro-
that falls under EREC Generation units at a
generator;
G98 in a single premises single premises.
• It is installed in accordance with
EREC G98. Your installer should be
A guide for connecting Installation of familiar with these requirements;
Distributed Generation Distributed Generating and
that falls under EREC units at more than one • It has been tested and approved
G98 in multiple premises within a close according to the relevant Type
premises geographic region. Testing Annex in EREC G98.
This Guide is written for installations where:
A guide for connecting
Type A Power • The registered capacity is >16 A/phase and above, but less than
Generating Modules 1 MW; and
under EREC G99 • The connection point is below 110 kV (in practice in GB this is at
66 kV or below).

A guide for connecting

This Guide is written for installations where the registered capacity is
Type B—D Power
at or above 1 MW, or for any generation connected at or above
Generating Modules
110 kV (in practice in GB this is at 132 kV or above).
under EREC G99

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 Distributed Generation Connection Guide:
Is this the right Guide for my project?

Engineering Recommendation G98

EREC G98 is called “Requirements for the connection of Fully Type Tested Micro-generators
(up to and including 16 A per phase) in parallel with public Low Voltage Distribution
Networks”. It sets out the requirements you must meet before your Micro-generator can be
connected to the network. The capacity threshold refers to the aggregate generating
capacity installed in a single premises. EREC G98 is available on the Distribution Code
website.
The document is aimed at the manufacturers and installers of your Micro-generator.

Engineering Recommendation G99

EREC G99 is called “Requirements for the connection of generation equipment in parallel with
public distribution networks”. The purpose of the document is to provide guidance to you and
to DNOs on all aspects of the connection process. It contains a glossary of items and diagrams
of Power Generating Module types and categorisation, which you may find helpful. EREC G99
is available on the Distribution Code website.

Micro-generator
A Micro-generator is defined in EREC G98 as “A source of electrical energy and all associated
interface equipment able to be connected to an electric circuit in a Low Voltage electrical
installation and designed to operate in parallel with a public Low Voltage Distribution Network
with nominal currents up to and including 16A per phase. For the avoidance of doubt this
includes electricity storage devices”. 16 A per phase corresponds to 3.68 kW on a single-phase
supply and 11.04 kW on a three-phase supply, and refers to the aggregate Micro-generator
capacity installed in a single premises.

Close Geographic Region

Typically, a Close Geographic Region is one which is fed by the same part of the distribution
network, from a single feeder or distribution transformer. Your DNO will be able to advise
you as to whether your Micro-generators are within a close geographic region. A general rule
of thumb is that if your Micro-generators are within 500 metres of each other, or if the post
codes are the same at least up until the last two letters, then they are likely to be within a
close geographic region.

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 Distributed Generation Connection Guide:
Is this the right Guide for my project?
Inverters
An inverter is an electrical device that converts Direct Current (DC) to Alternating Current (AC).
This is required when you want to connect a generating unit with a DC output (eg. a
Photovoltaic array) to the distribution network, which operates at AC.
The term Micro Inverter is used to describe small scale inverters which are connected to
(multiple) small generating units, such as individual PV panels. This is often done so that if one
panel is impaired for any reason, then the output of the others is not affected.

Type tested equipment

Type Tested equipment is defined in EREC G99 as “A product which has been tested to
ensure that the design meets the relevant requirements of this EREC G99, and for which the
Manufacturer has declared that all similar products supplied will be constructed to the same
standards and will have the same performance”. Examples of products which could be type
tested include generating units, inverters and the interface protection. Using type tested
equipment simplifies the connection and commissioning process.

EREC G98 and G99 annexes contain methodologies for testing equipment against a set of
test conditions to demonstrate compliance. The manufacturer produces a Type Test or
Compliance Verification Report to demonstrate compliance. Where the whole Micro-
generator or Power Generating Module is type tested (rather than just a part), it is Fully
Type Tested. All Micro-generators connecting under EREC G98 must be Fully Type Tested.
The Fully Type Tested concept also applies in EREC G99.

The ENA hosts an online Type Test Verification Report Register. This register is provided to
allow anyone access to the Type Test Verification reports for products relating to electricity
generation connecting to the DNO networks in the UK. The site also enables product
identification and information sharing. You can access the register at: https://www.ena-
eng.org/gen-ttr/

The product manufacturer is responsible for uploading and maintaining data and
documentation relating to their products. The ENA is carrying out a review of the data that is
submitted and raising any queries with manufacturers. Further information about the review
can be found at:
https://www.energynetworks.org/electricity/engineering/distributed-generation/
requirements-for-generators/ttr-review.html

It should be noted that it is the owners of generation equipment who are responsible for
procuring and installing compliant equipment.

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 Distributed Generation Connection Guide:
Is this the right Guide for my project?
Equipment Certification
Potential Equipment Certificate providers and manufacturers are investigating formal
equipment certification and the ENA are supporting as appropriate.

Emerging Technology
EREC G98 and G99 have a relaxed set of requirements for generation that is classified as an
Emerging Technology. This is because the Requirements for Generators (RfG) allows for
this. The Emerging Technology status only applies to Type A generation, which has a
generating capacity of 0.8 kW to 1 MW and is connected at less than 110 kV (in practice in
Great Britain that is 66 kV or below). The Emerging Technologies are:
• ‘Baxi Ecogen’ generators (the specific products are the Baxi Ecogen 24/1.0, Baxi
Ecogen 24/1.0 LPG and Baxi Ecogen System)
• KD Navien stirling engine m-CHP (Hybrigen SE) (the specific products are the ‘NCM-
1130HH – 1 KWel’ and the ‘NCM-2030HH – 2 kWel’)
• Pellematic Smart_e
• Dachs Stirling SE Erdgas and Dachs Stilring SE Flussiggas

RfG Types A to D
The European Requirements for Generators (RfG) Code has introduced the classification of
Power Generating Modules by Types. There are four types, A to D, and they relate to the
registered capacity and connection voltage of the Power Generating Module. In Great Britain,
the Types are:
Type A: From 0.8 kW to < 1 MW and connected at < 110 kV
Type B: From 1 MW to < 10 MW and connected at < 110 kV
Type C: From 10 MW to < 50 MW and connected at < 110 kV
Type D: ≥ 50 MW or connected at ≥ 110 kV
Note that in different European countries, the capacity and voltage thresholds may differ.
The technical requirements in RfG are less onerous on the smaller Power Generating
Modules, and increase cumulatively for the larger Power Generating Modules, ie a Type B
Power Generating Module must meet the requirements for Type A and Type B. Some
requirements are common across all European countries. However, some requirements have
country-specific parameters, which have been set by national network operators. That means
that some of the parameters in Great Britain are different in Northern Ireland, and other
European countries.

Page 7
 Recent Changes to Regulations
Requirements for Generators Drivers for the Requirements for Generators
The European Third Energy Package was The EU Network Codes aim to harmonise
adopted in July 2009, and has been law since technical and market rules to help to minimise
March 2011. The Third Energy Package refers barriers to energy trading. They also aim to
to a suite of legislation for both Electricity and prevent wide-scale technical events, and to
Gas. It has three key objectives: help to recover the system if there is such an
1. Enhancing sustainability and helping the event in the future. There has been a huge
European Union meet its increase in the amount of generation
decarbonisation obligations; connected to distribution networks – in Great
2. Ensuring security of supply in light of a Britain and across Europe. It has been
changing generation mix; and recognised that Distributed Generation can
3. Creating a single European Market for and needs to do more to provide support to
Electricity. the power system, so that generation
The Third Energy Package requires the supports system frequency, remains
development of European Network Codes. connected if possible and rides through faults
The Network Codes cover three areas: grid – rather than tripping off, and potentially
connection codes; market codes and system exacerbating any problems.
operation codes. One of the Codes is called The Requirements for Generators contains
Requirements for Generators (RfG). This sets technical requirements, which have been
out requirements which new generators will incorporated into EREC G98 and G99, so that
need to meet. generating units can provide such system
The RfG, which became a binding EU support. For example, there are requirements
regulation in May 2016, is available on the for:
EUR-Lex website. • All Type B, C and D Power Generating
A joint Distribution Code Review Panel (DCRP) Modules to stay connected to the
and Grid Code Review Panel (GCRP) distribution network when there is a
workgroup was charged with implementing fault on the transmission system;
the Requirements for Generators in GB. This • Type B, C and D inverter connected
included setting parameters that the RfG Power Generating Modules (eg solar PV,
leaves to national interpretation. The battery storage, wind turbines) to
workgroup proposed changes to the Grid provide support in the event of a
Code, Distribution Code and supporting network fault, using a technique called
Engineering Recommendations. The revised Fast Fault Current Injection (the design
documents were consulted upon with of synchronous machines means they
stakeholders by the GCRP and the DCRP. inherently provide support during
This work resulted in the publication of faults);
Engineering Recommendations G98 and G99, • All Power Generating Modules to
as well as revisions to the Distribution Code provide support in the event of a high
and Grid Code. These new EREC documents frequency event (Limited Frequency
apply to generation that is connecting to the Sensitive Mode – Over frequency); and
distribution network. The old EREC G83 and
EREC G59 should no longer be used after the • Type C and D Power Generating
27th April 2019. Modules to provide support for low
frequency events (Limited Frequency
Sensitive Mode – Underfrequency).
Page 8
 Recent Changes to Regulations
These requirements have been introduced so
that generation of all sizes can help to provide
system support.
The new rules applies to all generation, not
just Distributed Generation.

Page 9
 Key Terms for EREC G98 and G99
In the process of drafting EREC G98 and G99, the opportunity was taken to align with European
terms used (eg from the Requirements for Generators document) and to consolidate terms
previously used in GB documents. This means some new terms have been introduced, which are
used widely in the documents. The key terms are summarised on this page, and some are
explained further in break out boxes throughout the document or in the main text. Terms that
are particularly relevant for EREC G98 are indicated with a *.

Fully Type Tested* The whole Micro-generator / Power Generating Module is type tested,
rather than just part of the Micro-generator / Power Generating Module.

Micro-generator* A source of electrical energy and all associated interface equipment

connected at Low Voltage to the distribution network, with nominal
currents up to and including 16 A per phase.

Micro-generating Plant* An electrical installation with one or more Micro-generators with nominal
currents in sum not exceeding 16 A per phase.

Generating Unit Any apparatus that produces electricity.

Power Generating Module Either a Synchronous Power Generating Module (SPGM) or a Power Park
(PGM) Module (PPM) - see below.

Synchronous Power An indivisible set of Generating Units—ie one or more units which cannot
Generating Module (SPGM) operate independently of each other—which generate electrical energy in
synchronism.

Power Park Module (PPM) Generating Units that are connected to the network either through power
electronics (eg solar PV or electricity storage devices connected through an
inverter) or asynchronously (eg some wind turbines are induction or
asynchronous generation). They have a single Connection Point to the
distribution network.

Power Generating Facility One or more Power Generating Modules connected to at one or more
(PGF) Connection Points. This is a Power Station in EREC G59.

Registered Capacity The normal full load capacity of a Power Generating Module less the MW
consumed when producing the same (ie auxiliary load). For Power
Generating Modules connected via an Inverter, the Inverter rating is the
Power Generating Module’s rating.

Type A / B / C / D Classifications of Power Generating Modules by size and connection

voltage, to determine technical and compliance requirements.

Page 10
 A: A Guide to the UK Power Sector
In this section:
• An overview of the commercial structure of the power sector
• An introduction to the UK power sector and how it is changing
• A discussion about the various types of organisations that you may
come across while developing your Distributed Generation project
• A discussion on Network Innovation projects
• Guidance on where to find more information

Tip: Read the information boxes for definitions or explanations of terms that
may be new or unfamiliar.

Introduction
Understanding a little about the UK power There are many organisations involved in the
sector may be useful when discussing your UK power sector, which are introduced in this
Distributed Generation project. This section section.
aims to give some background explanation Apart from the physical structure of the power
about the UK power sector and how it is sector, there is also a commercial structure,
changing to meet the challenges of protecting which is discussed in this section.
the environment and changing Government
policy.

The Commercial Structure of the Power Sector

The commercial structure of the electricity The wholesale market is governed by British
industry in Great Britain provides a Electricity Trading Transmission Arrangements
competitive market in electricity retailing. (BETTA), which was introduced in 2005.
This enables customers to contract with any If you install Distributed Generation you can
one of a number of competing electricity use the electricity you produce on site to
suppliers. The sale of energy is also a reduce the amount of electricity that you need
competitive market. Note, your Feed-In Tariff
to buy thus lowering your electricity bills.
level is an indication of the minimum you can
expect to be paid for the electricity you You can also sell electricity to customers,
generate. suppliers or, depending on the size of the
generation, on the wholesale market. You can
Generators sell the electricity that they read more about power trade options in
generate in the wholesale market or directly Section F. Selling Electricity.
to suppliers. Suppliers sell the electricity they
purchase to customers. The majority of
trading occurs in advance of the time of use.
Page 11
 The Physical Infrastructure of the Power Sector
Traditional electricity system The distribution system carries the electricity
The diagram below illustrates the to loads, such as homes and businesses.
infrastructure of the traditional power sector. The transmission and distribution systems are
Large power stations feed into the also called transmission and distribution
transmission system, and the electricity is networks. Both terms are used in this Guide.
then transported to the distribution system.

Power Stations This symbol

represents a
Mostly large coal, gas and nuclear transformer. These
power stations. are used throughout
electricity networks
to change voltage
levels.

Transmission System
Transports electricity over long distances
across the country.
Electricity is transported at a high voltage
to reduce losses.

Other Voltage Range: 275kV or 400kV. In

Distribution Scotland, 132kV is also used.

Systems
‘Grid Supply These arrows show the normal
Point’ direction of the flow of
electricity through the system.

In a traditional power system,

Distribution System electricity flows from large
generation sites, through the
Transports electricity from the Transmission transmission and distribution
System to loads like homes and businesses. networks, to the loads.
The voltage is reduced to the correct supply
voltage for the loads.

Voltage Range: 132kV and lower in England and

Wales, or lower than 132kV in Scotland. Most
residential customers are supplied at 230V.

Loads
Page 12
 The Physical Infrastructure of the Power Sector
Changing electricity system Distributed Generation can result in electricity
In addition to the large power stations flows in both directions; from the distribution
connected to the transmission system, an network to customers, and from customers
increasing number of small power stations are with Distributed Generation back into the
being developed, often connected to distribution network. The system is no longer
distribution networks. Generation connected a “waterfall” system, with electricity flowing
to the distribution network is called from the large power stations in one direction
Distributed Generation. The diagram below towards customers. Instead, electricity flows
illustrates this changing electricity system. are more unpredictable.

Distributed Generation (DG or ‘Embedded Generation’)

A generation project is classed as Distributed Generation if it operates while electrically
connected to the distribution network. Energy generated from Distributed Generation may be
used onsite, or some or all of it may be exported to the distribution network.

Power Stations
A mix of energy sources, including
renewable and conventional sources.

Other
Distribution
Transmission System
Systems The direction of electricity
flow becomes more dynamic
and often less predictable
with the increase of
Distributed Generation. This
will require more active
Distribution System control of the networks.

Loads Distributed Generation

Page 13
 Key Organisations
The transmission and distribution systems are electricity from the transmission system (and
owned and operated by regulated monopoly from Distributed Generation) to customers.
businesses. Transmission and distribution DNOs charge suppliers for using the
businesses recover the costs of operating and distribution system.
maintaining their systems by levying Use of DNOs can form part of a group that
System charges on electricity traded using undertakes other areas of business as well, eg.
their network. electricity supply. However, these businesses
Distribution Network Operator (DNO) have to be kept separate, and you, as a
A DNO owns, operates and maintains public developer, will have to interface with the
electricity distribution networks in one or network operator business.
more regions in the UK. They must hold a Independent Distribution Network Operators
Distribution Network Operator Licence. Under (IDNOs)
the terms of their licence, each DNO is An IDNO designs, builds, owns and operates a
allowed to distribute electricity both inside distribution network, which is an extension of
and outside its legacy geographic area. an existing DNO network. They typically build
There are six DNOs in Great Britain. The network for new developments such as
regions where they operate are shown on the business parks and residential areas. IDNOs
map below. differ from DNOs in that:
To facilitate competition in supply, each DNO • they do not have service areas (they are
is required to allow any licensed supplier to not tied to a geographical location);
use its distribution network to transfer • they are regulated like DNOs, though
have fewer licence conditions to meet.

Map of DNO regions in the UK:

For DNO contact details, please see the membership area
of the ENA website. A complete list of DNOs and IDNOs is
given in page 16.

Page 14
 Key Organisations
If you are connecting your Distributed Electricity supply is a competitive market so
Generation to an IDNO’s network, the process you can choose and change your electricity
is almost identical to that if you are supplier.
connecting to a DNO. There are a few Aggregators
exceptions to this, which are discussed in Aggregators specialise in co-ordinating
Section C of this Guide. demand and generation (including storage) to
Transmission Owner (TO) provide demand response and other market
A TO owns and maintains the high voltage services. The Network Operators and
transmission system, known as the National Suppliers may buy demand response and
Electricity Transmission System, referred to in other grid balancing services from
this Guide as the transmission system. aggregators.
Transmission Owners are responsible for
making sure that transmission services are Energy Service Company (ESCO)
available to the System Operator (see A Government paper defines ESCOs as “a
explanation later in this section). The company that provides a customer with
Transmission Owners are as follows: energy solutions” rather than simply being an
electricity or gas supplier. ESCOs can enter
• National Grid Electricity Transmission
into long-term contracts to provide
(NGET) in England and Wales
information, installation, finance, operation
• SP Energy Networks (SP Transmission
and maintenance. There are various models
plc) in southern Scotland
the ESCO can take. ESCOs can work on a
• Scottish and Southern Electricity
performance contract, where they guarantee
Networks (Scottish Hydro Electric
energy savings and make charges based on
Transmission plc) in northern Scotland
the extent to which these savings are
(Scottish Hydro Electric Transmission
achieved. This model is typically used by
Ltd, or SHETL)
commercial and industrial customers. ESCOs
can also work for communities, servicing a
Private Networks
group of customers in the same local area.
Private networks are extensions of the existing
DNO network which are not owned by the ESCOs may develop into a household model,
DNO itself. The owners of private networks to provide energy efficiency savings and small
are distinct from an DNO because they do not scale generation for home owners, rather
need to be licenced and are unregulated. than just supplying electricity.
For example, private networks can be owned Generators
by hospitals, airports, industrial sites, etc. This Generators own, operate and maintain Power
Guide is not intended to address connections Generating Facilities which generate
to private networks. If you are connected to a electricity from various energy sources, eg.
private network, you should discuss your plans coal, gas, hydro and nuclear. Newer
with the network owner as soon as possible. generation technologies include wind, solar,
tidal and wave. See the end of this section for
Suppliers
links to more information on generating
Supply is the retail of electricity. Suppliers buy
technologies.
electricity in bulk from generators, and then
sell to consumers. They are responsible for
providing bills and customer services, and
arranging metering and meter reading.

Page 15
 Key Organisations
To identify your DNO or IDNO:
If you already have a meter at your site, find the Example MPAN, with first two digits indicated
first two digits of your MPAN (Meter Point
Administration Number), which is shown on your
electricity bill, and may be shown on your meter.
This corresponds to your DNO or IDNO, see table
below.
If you do not have a meter at your site, you can contact the DNO whose geographic area you believe you
are in and they will be able to confirm. See the map on page 14.

First 2 MPAN
Service Area Distribution Business
digits
10 Eastern England UK Power Networks– Eastern England
11 East Midlands Western Power Distribution (WPD) – East Midlands
12 London UK Power Networks (UKPN) – London Power Networks (LPN)

13 Cheshire, Merseyside SP Energy Networks – Cheshire, Merseyside and North Wales

and North Wales
14 West Midlands Western Power Distribution (WPD) –West Midlands
15 North Eastern England Northern Powergrid (NPG)
16 North Western England Electricity North West (ENW)
17 Northern Scotland SSE Power Distribution – Scottish Hydro Electric Power Distribution
18 Southern Scotland SP Energy Networks
19 South Eastern England UK Power Networks (UKPN) – South Eastern Power Networks (SPN)
20 Southern England SSE Power Distribution – Southern Electric Power Distribution
21 Southern Wales Western Power Distribution (WPD) – South Wales
22 South Western England Western Power Distribution (WPD) – South West
23 Yorkshire Northern Powergrid (NPG)
24 No area—IDNO GTC (Independent Power Networks)
25 No area—IDNO ESP Electricity Limited
26 No area—IDNO Last Mile Electricity Limited
27 No area—IDNO GTC (The Electricity Network Company)
29 No area—IDNO Harlaxton Energy Networks Limited
30 No area—IDNO Leep Electricity Network Limited
31 No area—IDNO UK Power Distribution Limited
32 No area—IDNO Energy Assets Networks Limited
33 No area—IDNO Eclipse Power Limited
34 No area—IDNO Murphy Power Distribution Limited
35 No area—IDNO Fulcrum Electricity Assets Limited
36 No area—IDNO Vattenfall Network Limited
17/20 No area—IDNO Forbury Assets Limited
Tbc. No area—IDNO Utility Assets Limited

Page 16
 Key Organisations
System Operator (SO) activities in the power sector:
Electricity cannot be stored at a large scale − Generation
and so demand has to be balanced with − Transmission (and
generation on a second by second basis by the interconnection, a transmission
System Operator. The SO makes requests of link with another country)
generators to increase or decrease output − Distribution
from their units, or may ask some large − Supply
customers to control their demand. NGESO is Generation licence requirements for
the System Operator in Great Britain. Distributed Generation are discussed in
Following a government consultation on Section D. The Connection Application:
greater separation between the System Generation Licensing.
Operator role performed by National Grid and
the rest of the National Grid group, National European organisations
Grid has established a new, legally separate The regulatory arrangements that apply
company to carry out the Electricity System across continental Europe are implemented
Operator function within the National Grid by National Regulator Authorities (NRA) in
Group, which is called the National Grid each member state of the European Union;
Electricity System Operator (NGESO). This Ofgem is the National Regulatory Authority
separation took place on 1st April 2019. for Great Britain. The regulations are required
Balancing Settlement Code company to comply with policy criteria determined by
the European Parliament and implemented
Elexon is the company that manages the through European Directives and Regulations.
balancing and settlement of electricity trading. To assist with this process in relation to
They do this by identifying where generators electricity networks, a number of bodies have
have not generated the amount of electricity
been set up that represent regulators and
they are contracted to produce, and suppliers’ transmission system operators. National
customers have not consumed the amount of Energy Regulators work with the Agency for
electricity that was expected. Out of balance the Cooperation of Energy Regulators (ACER)
parties are charged based on the additional and the Council of European Energy
cost to balance supply and demand (often by Regulators (CEER) on policy developments in
buying or selling electricity at short notice). different areas of electricity market
The Balancing and Settlement Code (BSC) liberalisation.
governs the operation of this balancing ENTSO-E, the European Network of
mechanism. Transmission System Operators for Electricity,
Regulator is a membership body for Transmission
System Operators (TSO). ENTSO-E promotes
The Office of Gas and Electricity Markets
cooperation across Europe’s TSOs. One of
(Ofgem) is responsible for:
ENTSO-E’s roles is drafting the European
• regulating prices and performance in the Network Codes, which includes the
monopoly elements of the electricity Requirements for Generators (RfG).
supply industry;
The UK’s membership in these agencies post-
• resolving disputes between different
Brexit will be subject to negotiations.
parties when necessary; and
• granting licences for the following

Page 17
Network Innovation and Industry Developments
Innovation Funding innovation strategy. The Electricity Network
New challenges and applications in energy Innovation Strategy sets out a jointly agreed
networks have motivated many projects that roadmap which demonstrates how innovation
aim to develop innovative tools and products can accommodate future whole-system
to improve the way networks operate and requirements and lead to benefits. The
customers are connected. document was first published on 29th March
Ofgem has a number of mechanisms that the 2018 and will be reviewed every 2 years at a
DNOs and other organisations can use to fund minimum. Further information is available on
electricity network innovation. The two main the ENA website.
mechanisms for network companies are called Transmission and Distribution Interfaces
the Network Innovation Allowance (NIA) and
Network Innovation Competition (NIC), which There has been a significant increase in the
apply to both electricity and gas distribution amount of connected Distributed Generation
and transmission. in the last few years. This has meant that the
DNOs, TOs and the SO have to change the way
• NIA is an allowance each network they work together, to maintain an economic
company receives to fund smaller scale and secure network. In order to address these
innovation projects which have the challenges, the Transmission Distribution
potential to deliver benefits to network Interface (TDI) Steering Group was established
customers. by ENA and its members. Network companies
• NIC is an annual competition, where recognise the need for distribution and
network companies compete for funding transmission companies to work together
for development and demonstration of more closely in order to consider how they can
network innovations such as new tackle the whole system impact of Distributed
technologies or novel operating and Generation and other technologies such as
commercial arrangements. storage.

Learning from these projects is shared In January 2017 the Open Networks Project
amongst all DNOs and TOs for the benefit of was launched by the ENA. The aim of the Open
the power sector as a whole. Incorporation of Networks Project is to transform the way
the learning into business as usual practices is electricity networks operate and provide the
laid out in the business plans of the individual first step towards creating a smart grid.
network companies. One of the areas that is under review is the
For more information, and details about management of Connection Offers for
individual projects, refer to the Smarter customers who are waiting to connect to the
Networks Portal, hosted by the Energy network, which involves improving the existing
Networks Association: interactivity and queue management policy.
Interactivity occurs at the application stage of
http://www.smarternetworks.org/ connection offers when two or more
Electricity Network Innovation Strategy applicants apply for the same connection. The
new proposals by the ENA allow network
Following a review of the NIA and NIC, Ofgem
companies to inform applicants that there is
proposed a number of changes to the
the possibility of connecting to their network,
innovation funding schemes. One of these was but is conditional on the project in front
the requirement on network companies to rejecting its offer. The ENA is also proposing
collaboratively produce an industry wide

Page 18
 Network Innovation and Industry Development
that if the customer in front accepts the offer, New technologies
the network company is able to take that Active Network Management (ANM) schemes,
connection into account and provides a which have been trialled in innovation
revised offer with a new connection date. projects, are now being included as part of
Queue management allows network Business As Usual Connection Offers. ANM
companies to manage contracted connections uses control systems to manage Distributed
against the available capacity at the time by Generation in constrained areas. Note that
moving projects down the connection queue if ANM connections may only be available in
they have not met their agreed milestones by selected parts of the network.
a certain date. Similarly, projects can be
moved up the queue when capacity becomes Export limiting devices are also coming into
available and they have met their agreed use. These devices allow a limit to be set
milestones. above which the generation will not export.
This may allow generation to have a
The proposals formed the basis of a constrained connection, to reduce the need
consultation which closed on the 25th
for reinforcement. If you want to explore the
September 2020. The DNOs are currently use of these devices, seek guidance from your
planning implementation dates to take DNO. ENA has published Engineering
account of the proposals outlined by the ENA. Recommendation (EREC) G100, which
A full review of the work done so far in 2020 provides technical guidance on the connection
can be found on the ENA’s website below: of Customer Export Limiting Schemes that
operate in parallel with the distribution
https://www.energynetworks.org/electricity/
systems of licensed DNOs. This is available on:
futures/open-networks-project/workstream-
products-2020/ws2-customer-information- http://www.energynetworks.org/electricity/
provision-and-connections.html engineering/distributed-generation/
engineering-recommendation-g100.html
For 2020 the main areas of focus are on:
Energy storage is becoming increasingly
• Flexibility Services
prevalent in distribution networks. For more
• Whole Energy Systems information on network connected storage
• Customer connections (eg. batteries), refer to Chapter C: Getting
Connected—Energy Storage.
• DSO transition
The work is continuing in 2021.

Page 19
 Where to Find More Information
There are some very good guides to the UK power sector available in the public domain. In
particular, if you want to read more on this subject, you may wish to read the following:
• A Guide: Sale of Power Opportunities for Distributed Generators; DTI (Department for
Trade and Industry);
• Guidance Note – The Electricity Trading Arrangements: A beginner’s guide; Elexon
www.elexon.co.uk/knowledgebase/about-the-bsc/
A good source of information on the organisations we have introduced are their own websites:
• Energy Networks Association —the industry body for UK energy transmission and
distribution licence holders and operators: www.energynetworks.org
• A list of IDNOs can be found on the Ofgem website:
www.ofgem.gov.uk/Networks/ElecDist/Policy/IDNOs/Pages/IDNOs.aspx
• Ofgem—The Regulator: www.ofgem.gov.uk
• National Grid —The Great Britain Electricity System Operator, and Transmission Owner in
England and Wales: www.nationalgrid.com/uk/Electricity/
• Elexon—The Balancing and Settlement Code Company: www.elexon.co.uk
For more information on ESCOs, the following document is a useful reference:
• Making ESCOs Work: Guidance and Advice on Setting Up and Delivering an ESCO; London
Energy Partnership, which is on the London Energy Partnership website: www.lep.org.uk
The following website gives more information on generation technologies:
• Energy Saving Trust: www.energysavingtrust.org.uk/Generate-your-own-energy
The GB Distribution Code, Annex 1 and Annex 2 documents and the associated GB Distribution
Code User Guide can be found in the link below:
• DCode: http://www.dcode.org.uk/
The GB Grid Code and the associated Guide can be found in the link below:
• GCode: www.nationalgrideso.com
Information about licence exceptions and private networks can be found:
• UK legislation: http://www.legislation.gov.uk/uksi/2001/3270/contents/made

Page 20
 B: The Role of Distributed Generation
In this section:
• An introduction to the role of Distributed Generation
• A discussion on the drivers for Distributed Generation
• Some of the benefits and impacts of Distributed Generation
• References to some documents where you can find out more on these
issues

Introduction
As explained in Section A of this Guide, the • Technological innovation.
electricity industry is undergoing changes with
increasing amounts of Distributed Generation In this section, these drivers are discussed in
being connected to the system. There are a more detail. We will also introduce some of
number of drivers behind this: the benefits and challenges of Distributed
Generation.
• Environmental issues;
• New Government Policy; We refer to some useful documents and
• Security of supply; and reports for further reading on this topic.

What is Driving Distributed Generation?

Environmental concerns Although the connection and integration of
Globally there has been increasing concern these newer generating technologies may
over greenhouse gas emissions and the impact pose challenges, innovative technical solutions
that they may be having on the environment. are being sought to overcome these
challenges. These are discussed on page 18.
Most of the electricity in the UK has
traditionally been generated by power Government policy
stations fuelled by fossil fuels, for example The Department for Business, Energy and
coal, gas and oil. The burning of these fuels Industrial Strategy (BEIS) oversees energy
makes a significant contribution to emissions. policy and climate change mitigation policy.
The UK energy supply is one of BEIS’s key
There is therefore a drive to change the mix of
policy areas. BEIS is developing policy to
generation technologies we have, to include
more low-carbon options. ensure that in the UK energy supplies are
secure, low carbon, and fuelled from a diverse
Technological innovation mix of energy supplies. However, BEIS also
Technology is developing all the time, and due has to ensure that energy prices are
to drivers such as environmental concerns and maintained at affordable levels. Relevant
government policy, there are more generating pieces of legislation include:
technologies available now than there were • Climate Change Act 2008
when the national grid was being developed. • Energy Act 2008
For example, wind, wave, solar and biomass • Energy Bill
generation.
Page 21
 What is Driving Distributed Generation?
The Climate Change Act sets out legally great deal of uncertainty as the cost and
binding targets for emissions reductions. As reliability of supply is outside of UK control. It
such, policy has been developed, which is therefore an advantage to have a diverse
introduces initiatives such as: mix of energy sources, which would make the
• Climate Change Agreement (Climate UK less vulnerable to a restriction in fuel
Change Levy) availability or rise in price.
• Zero Carbon Homes It is also known that fossil fuels will eventually
As well as legislation from the UK run out as they are being used much faster
Government, the EU also introduces relevant than they are being created. As they become
legislation and initiatives, such as the EU more scarce, the prices will rise as the markets
Emissions Trading System and the European become more competitive. Therefore to
Third Package, which is driving a set of new ensure the security of the energy supply into
European Network Codes. the future, alternative sources are being
encouraged.
Security of Supply
The UK increasingly relies on importing fuel, in
the form of gas, coal and oil. This introduces a

Benefits of Distributed Generation

There are a number of benefits that increased distribution losses are reduced, when
Distributed Generation has for the UK and its compared with the alternative of the
electricity system. These include: centralised power stations and bulk
transmission of electricity.
• Increased energy mix —Distributed
Generation is often a renewable source • The introduction of local generation in
of energy, such as solar, wind or businesses and communities can lead to
biomass, or uses the energy in a more greater awareness of energy issues.
efficient way as with Combined Heat and There are a variety of commercial benefits to
Power (CHP) projects. Therefore having Distributed Generation, which include:
increased Distributed Generation results
in a lower carbon mix of energy sources • Self Consumption, where you use the
in the electricity system. electricity that you generate to avoid
importing from the grid, therefore
• If Distributed Generation is connected
lowering your electricity bills.
close to the point of use, there is a
reduced need for the distribution and • Selling electricity that you generate,
transmission infrastructure. In some including gaining Smart Export
cases, this can delay the need for Guarantee (SEG) payments and
reinforcement, although the TO and the Contracts for Difference (CFD). This is
DNO also need to ensure that the discussed further in Section F: Selling
network provides adequate security of Electricity.
supply for its users. • Climate Change Levy Exemption
• Where there is a balance between Certificates (LECs) are issued to
Distributed Generation and local generators of renewable energy and
demand the transmission and good quality Combined Heat and Power

Page 22
 Benefits of Distributed Generation
(CHP). These can be sold to the supplier carbon support (eg. Feed-in Tariffs,
along with the energy generated. Renewables Obligation) and does not
Companies can use LECs to avoid paying have a long-term contract to provide
the Climate Change Levy tax. Short Term Operating Reserves (STOR)
to National Grid Electricity Transmission
• Embedded benefits of the generating
could be eligible to enter the Capacity
unit being connected to the distribution
Market, and receive payments for
rather than the transmission network,
delivering energy at times of system
eg. charge avoidance of Transmission
stress.
Network Use of System charges and
Balancing Services Use of System • EU Emissions Trading System (ETS) -
charges. Embedded benefits are applies to approximately 10,000 energy
changing, see chapter E. intensive users in the UK such as metal
industry, paper factories and refineries.
• Generators whose equipment has a
These large energy users have been
capacity greater than 3 MW (and/or the
allocated green-house gas allowances
ability to deliver in excess of +/- 15
for their operations. At the end of each
MVAr of reactive power) can enter into
year, they must ensure they have
agreements with NGESO to provide
enough allowances to cover their
Ancillary Services, for which they will be
emissions: they can buy additional
paid.
allowances or sell any surplus
• Generation that is not receiving low allowances generated from reducing

Impacts of Distributed Generation

As well as introducing benefits, the increased which the system has been
penetration of Distributed Generation in UK designed.
distribution networks also poses challenges.
• Distributed Generation can contribute
These will depend on a variety of factors, such
to fault level, which can raise the fault
as the generation technology, the voltage
level above the rating of network
level the Distributed Generation is connected
equipment.
to, the size of the generating unit(s), the level
of export to the distribution system, and on • There are a number of power quality
the type of network (eg. urban or rural). limits that can be affected by Distributed
Generation, including:
Some examples of the challenges posed to
• Contributions to harmonics,
distribution networks by Distributed
particularly if a significant number
Generation include:
of invertor controllers are present.
• Distributed Generation changes the
• Voltage unbalance which affects
current flows and shape of the load
power quality, if there are lots of
cycle where they are connected. This
single-phase generating units.
could cause:
• Voltage fluctuation or flicker, if
• Thermal ratings to be exceeded.
the output of the Distributed
• System voltage to rise beyond the
Generation changes rapidly.
acceptable limits.
• Reverse power flows, ie power Note: The technical terms used above are
flows in the opposite direction to defined in the glossary.
Page 23
 Where to Find More Information
The amount of generation connected to distribution networks has increased significantly since
2010. Today there is over 27,000 MW of Distributed Generation in the UK. The benefits and
challenges of Distributed Generation are complex, and the industry’s understanding of them is
evolving as experience increases. For more information on current initiatives in distribution
networks, the following documents are useful:
• The Electricity Networks Innovation Strategy; Energy Networks Association; 2020
• The Open Networks project; Energy Networks Association
The following documents are useful if you want more information on Government policy:
• The Clean Growth Strategy; BEIS; 2017
• Upgrading our energy system: smart systems and flexibility plan; BEIS; 2017
For the most up to date information on relevant Government policy, refer to the BEIS website:
https://www.gov.uk/government/organisations/department-for-business-energy-and-
industrial-strategy
For more information on Embedded Benefits:
• Embedded Generation and Embedded Benefits; Elexon; March 2019
• For the latest developments on Embedded Benefits visit the Ofgem Targeted Charging
Review (TCR) webpage and the charging future’s forum website

Page 24
 C. An Overview of Getting Connected

In this section:
• The main tasks in the process of connecting Type A Power Generating Modules under
EREC G99
• An explanation of the terms Power Park Modules and Synchronous Power Generating
Modules
• Guidance on adding new generation to an existing installation
• The provision of information and customer service standards
• A discussion on connecting to an IDNO network
• Guidance on where to find more information

Introduction
This Guide describes the process for
connecting Type A Power Generating Modules FIND AN INSTALLER
under EREC G99. Installers must be competent.

Under EREC G99, the technical and

compliance requirements are less onerous for DISCUSS WITH THE DNO
Type A Power Generating Modules, compared Exchange information about your project.
with Types B to D. A Type A Power Generating
Module has a capacity between 0.8 kW and 1
SUBMIT APPLICATION FORM
MW, and is connected below 110 kV.
Your installer submits the form to the DNO.
However, this G99 Guide only applies to Type
A Power Generating Modules > 16 A per
phase. If you are installing a Power Generating APPLICATION ACCEPTANCE
Module that is ≤ 16 A per phase, you should Once you have accepted the DNO’s
refer to the G98 Guide. connection offer, construction can begin.

The diagram opposite shows the key steps in

the connection process. These tasks are
based on the requirements set out in EREC COMPLIANCE
G99. Submit relevant compliance forms

INSTALLATION AND COMMISSIONING

Note that this document covers the process

INFORM THE DNO
for connecting generation to the distribution
Submit the “Installation Commissioning
networks in Great Britain. Northern Ireland
Confirmation ” form.
has different connection arrangements, for
example different versions of Engineering
Recommendations G98 and G99 are in use.
See www.nie.co.uk ONGOING RESPONSIBILITIES
Page 25
 Types of Power Generating Module
Power Park Modules and Synchronous Power Power Park Module - the classification of Type
Generating Modules A to D is based on the capacity of the Power
Power Generating Modules are classified in Generating Module (PGM), which is the total
EREC G99 as Power Park Modules (PPM) or capacity of all generating units (GU) in the
Synchronous Power Generating Modules Power Park Module (PPM):
(SPGM). Both comprise one or more
generating units, which is any apparatus that
produces electricity.
Power Park Modules (PPM) are connected to
the network either through power electronics
(eg. solar PV or electricity storage devices
connected through an inverter) or
asynchronously (eg. some wind turbines are
induction or asynchronous generation). They
have a single Connection Point to the
distribution network.
Synchronous Power Generating Modules
(SPGM) are defined in EREC G99 as “an
Synchronous Power Generating Module – the
indivisible set of Generating Units (ie one or
classification of Type A to D is based on the
more units which cannot operate
capacity of each Power Generating Module
independently of each other) which can
generate electrical energy such that the (PGM) in the Power Generating Facility (PFG):
frequency of the generated voltage, the
generator speed and the frequency of
network voltage are in a constant ratio and
thus in synchronism.” Where the generating
units cannot run independently from each
other – eg. if they have a common shaft – they
form a Synchronous Power Generating
Module.
In terms of classifying your Power Generating
Module as Type A to D – for a Power Park
Module, this is based on the total capacity of
all generating units in the Power Generating
Facility (all behind a single Connection Point).
For Synchronous Power Generating Modules, Where generating units are connected via
this is based on the capacity of each inverters, the inverter rating is deemed to be
Synchronous Power Generating Module, even the generating unit rating.
if there are multiple modules in a Power
Generating Facility. This is illustrated in the
diagrams.

Page 26
 Types of Power Generating Module
For example: A Power Generating Facility Another Power Generating Facility comprises
comprises three 400 kW Synchronous Power three 400 kW generating units (eg. wind
Generating Modules (SPGM). Although the turbines), which form a Power Park Module
capacity of the Power Generating Facility is 1.2 (PPM). The capacity of the Power Park Module
MW, the threshold for requirements is based is the total capacity of all of the generating
on the capacity of each Synchronous Power units, ie 1.2 MW. The Power Park Module
Generating Module. As each is 400 kW, each must meet the Type B requirements in EREC
SPGM must meet the Type A requirements in G99. There are further illustrations of
EREC G99. examples in Section 4 of EREC G99.

New and Existing Generation

Power Park Modules All Power Generating Modules
If you are adding new (ie connected under In all cases, if as a result of adding generation
EREC G99) generating units to an existing (ie to an existing installation the total capacity of
connected under EREC G59) Power Park all Power Generating Modules (existing and
Module installation, the new generating units new) exceeds the threshold for Embedded
will be treated as a separate Power Park Medium or Large as defined in the Grid Code,
Module. Only the capacity of the new then the Power Generating Facility will need
generating units should be taken into account to comply with relevant parts of the Grid
when determining the Type A to D category of Code.
the new Power Park Module (even though all There are further examples in EREC G99.
units are behind a single Connection Point).
The Connection Point and Interface Protection
However, this is not the case if you are adding
new generating units to an existing Power If you are installing new Power Generating
Park Module installation, where the existing Modules at an existing site (where the existing
Power Park Module was also installed under Power Generating Modules were connected
EREC G99. In this case, the total capacity of all under EREC G59), and where the interface
generating units in the Power Park Module protection is located at the connection point,
will determine the Type category. you will need to consider the design of the
This is the same irrespective of the technology connection including the location of the
– eg. if there are wind turbines and solar interface protection to ensure that all the
panels behind the same Connection Point, it is generation on the site meets with all
the total capacity of all units that determines applicable requirements.
the compliance requirements.
Synchronous Power Generating Modules
If you are adding new (ie connected under
EREC G99) Synchronous Power Generating
Modules (SPGM) to an existing (ie connected
under EREC G59) installation, the compliance
requirements for the new SPGMs are
determined by the capacity of each new
SPGM.
Page 27
 Getting Connected—Main Tasks
Finding an Installer
include:
The first task is to find a competent installer.
• How close your proposed generation
There are companies who design, install and
site is to the existing network;
commission domestic and other smaller
generation. They can fully certify and sign off • Whether there are any other planned
installations. Distributed Generation projects in the
same area; and
For installations up to 50 kW, certified
generation products and installers can be • Whether there is any “spare” capacity in
found on the following website: the network.
www.microgenerationcertification.org Feasibility studies (Optional)
The Microgeneration Certification Scheme is At this stage, you could have feasibility studies
operated by the Department for Business, carried out to assess possible connection
Energy and Industrial Strategy (BEIS). layouts and indicative costs. These studies
can be conducted by the DNO or an external
Discussions with the DNO
contractor, for a fee. If you do opt for
You must discuss your plans with the DNO feasibility studies, they should take into
before starting work. You should do this as account the standard of security required in
soon as possible in your planning, as the the connection between your generating
DNO’s response may have a big impact on equipment and the DNO’s network.
how you plan your project. You may discuss
Decide who will construct the connection
the feasibility of your connection, and if there
will be any charges for connection (charges A key decision you have to take is whether to:
are discussed further in Section E: Costs and • appoint an Independent Connections
Charges). Provider (ICP) to do the Contestable
All DNOs provide information to support work and the DNO to do the Non-
generation developers, such as capacity heat contestable work; or
maps, on their websites. These can be an • appoint the DNO to carry out all of the
important source of information. In addition, work required to provide the
there may be dedicated generation ‘surgeries’ connection.
or ‘drop in’ sessions to discuss your project
with the DNO. Using an ICP to install the contestable work
allows the work to be competitively bid for,
Alternative Connections meaning that it could bring some cost
Each DNO’s current approach to offering advantages. At the same time, using an ICP
alternative connection offers, such as Active results in an additional relationship between
Network Management, may be found on their the DNO and ICP which will need to be
website, noted in any connection offer or managed. If you are considering contracting
determined by discussion with the DNO. an ICP to undertake the Contestable work, you
may wish to invite quotations from a number
Make contact with the DNO
of ICPs, as well as the DNO for comparison.
Extra information can be obtained by making
Submitting an application form
early contact with the DNO to discuss your
project. This may be within dedicated Once you have planned the project and
generation ‘surgeries’ or ‘drop in’ sessions exchanged information about your plans with
arranged by the DNO. Discussions might the DNO, it is time to submit an application
Page 28
 Getting Connected—Main Tasks
form. If your Power Generating Module is less Connection offers are time limited. Your DNO
than 50 kW three-phase or 17 kW single- will inform you how long the offer is valid for.
phase, then you can use a simplified If a Connection Offer has expired, there is no
application form. The format of the simplified guarantee that the same offer will be made
application form is given in Annex A.1 of EREC again, particularly if your development is in an
G99, which is available from the Energy area where there are many Distributed
Network Association’s website. G99 is also Generation projects.
available via the DCode website. Your installer Once accepted, Connection Offers may be
should submit the application form on your withdrawn if the DNO feels that your plant is
behalf. For larger schemes, you should use the not progressing at a reasonable rate. This is to
standard application form, which is generally prevent spare capacity being ‘reserved’ for
available on DNOs’ websites. projects that in practice are not actually being
You should do your best to provide as much of built. A best practice guide to progression
the information required in the application milestones was published in November 2016
form as possible, to ensure your quote is as which your DNO may use to track the progress
accurate as it can be. If you have difficulty of your project. You may be asked to provide
filling out this form, you can discuss this with regular updates about the progress of your
your DNO or engage an adviser such as an project. This will enable the DNOs to
engineering consultant to assist you. proactively manage the queue on behalf of
generation customers.
Application Acceptance
Enter into agreements with the DNO
When you submit your application form you
need to include technical details of the You need to enter into a number of
equipment. The DNO needs this information agreements with the DNO before your
to assess the impact that your generating generating unit(s) can start operating, such as:
equipment may have on the network. • A Connection Agreement
Once the DNO has conducted these • An Adoption Agreement (only if you are
assessments, they will produce a connection using an ICP for your project)
offer. This will specify the conditions for your
• An agreement covering the
connection, and inform you of any connection
arrangements for operating the
charge that you may be asked to pay (charges
interface between the distribution
are discussed further in Section E: Costs and
network and your generating
Charges). You should ensure that you fully
equipment. This may be contained in a
understand this offer before accepting it. You
Schedule to the Connection Agreement,
should discuss questions with your DNO if you
or in a separate agreement such as a
are unsure.

Contestable and non-contestable work

There are certain tasks that DNOs do themselves, so that they can maintain co-ordination and
control of their networks. These tasks are called Non-contestable work, as they are not open
to competition. Conversely, when work is open to competition it is called Contestable work.
Contestable work can be conducted by Independent Connections Providers (ICPs). Often,
tasks that involve reinforcing existing equipment are non-contestable. Tasks which include
the installation of new infrastructure or extensions to the network tend to be contestable.

Page 29
 Getting Connected—Main Tasks
There are different forms for Synchronous
Site Responsibility Schedule or Joint
Power Generating Modules and Power Park
Operational Agreement
Modules.
Some of these agreements will be in place
These forms are completed by the
before construction begins.
manufacturer of your Power Generating
Compliance Module. However, you (or your installer on
Power Generating Modules can: your behalf) should obtain these and submit
them to the DNO as part of the connection
• Be Fully Type Tested, or process.
• Comprise some Type Tested equipment, Installation and Commissioning
and/or use manufacturers’ information You should maintain close contact with the
(see break out box on page 37) to DNO throughout construction. This is so that
demonstrate compliance, and/or also you are aware of the timeline of any
require additional site testing. reinforcement works that they need to do,
Note that there may be a need to and you can plan your project with this in
demonstrate compliance with power quality mind.
standards even if other aspects are type Commissioning can only take place once the
tested. construction is complete. EREC G99 details the
If your Power Generating Module is: commissioning tests that you or your installer
needs to perform. For generating units
• Fully Type Tested, and covered by EREC G99, it is your obligation to
• registered with the Energy Networks undertake appropriate commissioning tests,
Association Type Test Verification which the DNO may choose to witness.
Report Register For a Fully Type Tested Power Generating
then your application should include the Module connected at LV, your DNO will not
Manufacturer’s reference number (the normally need to witness the commissioning
Product ID). In all other cases, you need to testing. However, your DNO may choose to
provide the DNO with a Compliance do so. If this is the case, they will state this in
Verification Report. The format of these their Connection Offer.
reports is given in Annex A.2 of EREC G99. If your commissioning tests are being

Management of DNO Connection Queues:

As discussed on page 18 and 19 the ENA Open Networks Project is considering improvements
to the existing interactivity and queue management policy. Refer to the DNO’s website to
understand their position on this. More information is available here.

Page 30
 Getting Connected—Main Tasks
witnessed by the DNO, you or your installer supplier to buy electricity that you export, it is
should discuss the scope of the testing with your responsibility to keep them informed of
the DNO from an early stage, and must submit the proposed commissioning programme. In
the scope, time and date of the testing at least particular they should know the date you
15 days before commissioning takes place. expect imports and exports across the
Informing the DNO connection to start.
You should notify the DNO at least 28 days Ongoing responsibilities
before commissioning the Power Generating Although the focus of this Guide is to inform
Module, and provide them with information you about the process of connecting your
on the installation and the full results of the generation to the distribution network, you
commissioning tests. This information is should be aware that once it is connected you
captured in two forms, both of which are have some responsibilities. This includes:
available in EREC G99 and on the ENA website:
• The Installation Document (Form A.3) • Keeping your generation equipment
• Site Compliance and Commissioning Test maintained by someone who is
Form (Form A.2-4), where required, eg. competent to do so;
if the interface protection is not Type • Performing periodic tests that are
Tested and needs to be tested onsite. required by the DNO. They will discuss
these with you;
If your commissioning is being witnessed by
• Informing the DNO if there are changes
the DNO, then these forms can be filled out
to the installation that affect the
and handed to the DNO representative
generating characteristics;
witnessing.
• Complying with Health and Safety
The forms include a declaration that the requirements;
installer must sign. This states that the • Inform the DNO if something happens
installation complies with EREC G99. that affects the compliance of your
Note: DNOs may have their own versions of Power Generating Module with EREC
these forms on their websites—a web search G99; and
• When you are decommissioning your
should help you locate the forms you need, or
generating unit(s), you need to send the
try contacting your DNO.
DNO certain information. This is detailed
Put commercial arrangements in place in EREC G99 Annex D.1.
If you have made arrangements with a Annex D.3 in EREC G99 is called “Main
Statutory and other Obligations” and
summarises the main obligations on
generators.

EREC G99 was introduced in May 2018. It is based on EREC G59, which was revised to take
account of a European Network Code called Requirement for Generators. Generation connecting
to the distribution network must connect under EREC G98 or G99.

Page 31
 Getting Connected—Main Tasks
Changes to your Power Generating Module If you have an installation that was connected
under EREC G59 and you replace a major
If you need to replace a component of your
component you should notify the DNO if the
Power Generating Module, or its protection
change alters the operating characteristics of
system or interface protection, you must
the generating unit. If you replace all or part
notify the DNO before making changes. You
of the interface protection you should notify
and the DNO will need to reach agreement on
the DNO as they will need confirmation that
the significance of the change. If it is
the new protection complies with EREC G59
considered a small change, you will only need
and may want to witness the commissioning
to confirm the compliance of the affected
of the new protection.
component with EREC G99.
However, if it is a significant change (eg you If you replace a generating unit or Power
Generating Module that has been installed
increase the capacity of your Power
under EREC G59 you will need to discuss with
Generating Module), you will need to agree
the DNO whether the new equipment needs
with the DNO the approach to be taken with
to comply with EREC G59 or be upgraded to
the replacement equipment and in many
be fully compliant with EREC G99.
cases submit a new Standard Application Form
for the new equipment. For the addition of new Power Generating
Modules, see page 27.

EREC G98 / G99 exceptions

If you are installing a generating unit under EREC G98 / G99 then the requirements apply in full
in most circumstances. However, if your Power Generating Module is one of the following, some
parts of the technical requirements in EREC G98 / G99 do not apply:
• Classified as an Emerging Technology (see Emerging Technology box on page 7)
• An electricity storage device (see note below)
• Operating in infrequent short term parallel operation mode (ie operates in parallel with
the distribution network no more than 5 minutes in any month, and no more frequently
than once per week)
The full details of the requirements that do not apply are in EREC G98 / G99.

Note: As of summer 2020, the EU is planning to remove the exclusions for storage in the
European Requirements for Generators (RfG) Code. This means that the technical requirements
that currently do not apply to storage connections in the RfG Code, would apply. The UK DNOs
are likely to take the same approach as the EU, which means that:
• EREC G98 / G99 would apply in full to storage connections and
• The capacity of storage devices would count towards RfG Type classification (Types A – D)

In aligning with the EU RfG Code changes, distribution requirements in the UK would also align
with recent changes in Grid Code requirements for transmission connected storage. In May 2020
Ofgem approved National Grid’s modification to the Grid Code (GC0096), which sought to
provide clarification on storage requirements in response to increasing interest and applications
for storage connections. The changes clarify requirements for storage, which recognise different
operating characteristics and capabilities of a wide range of storage devices, and are consistent
with existing industry codes.

Page 32
 Customer Service and Provision of Information
There are a number of drivers for DNOs to Distributed Energy Resources (DER) Forum
provide a good level of service to customers. The DER Forums, hosted by the ENA on behalf
Price Control Proposals (RIIO-ED1) of DNOs, are events that are used to explore
Ofgem administers a price control regime issues and concerns around Distributed
which allows DNOs to earn a fair rate of Generation connections, including barriers to
return while limiting costs passed on to Distributed Generation and process issues.
customers. The current price control period They are open to anyone, and are attended by
is called RIIO-ED1, which runs until 2023. DNOs and developers. Details can be found on
The RIIO-ED1 proposals include a number of the ENA Events website.
mechanisms to incentivise DNOs to provide a Improvements made to DNO Services
good service to Distributed Generation
In recent years, there have been a number of
customers, including:
improvements to DNO services as a response
• A Time to Connect Incentive for minor
to these drivers and feedback, including:
connections customers (less than 70kW
and connected at LV); • Increased internal resources;
• An Incentive on Connections • Improved provision of information,
Engagement (ICE) - to encourage DNOs including more detailed breakdown of
to engage with and respond to the costs, web portals, decision support
needs of major connections customers tools/application hotline, and capacity
(which includes generation customers), “heat maps”, indicating areas that can
and includes a requirement on DNOs to more readily facilitate connections;
set out plans on what improvements • Holding stakeholder and customer
they plan to make in the next events; and
regulatory year, consisting of;
• Part 1: Plans for improvements • Exploring the possibility for discussions
for the forthcoming year; and prior to formal application (“connection
• Part 2: Reviews the progress in optioneering”). This process is being
the previous year. carried out in different ways by different
DNOs. Refer to your DNO for more
ICE workplans can be found on information.
individuals DNO websites
DNOs have promised to bring about continued
• The Broad Measure of Customer improvements, including:
Satisfaction (BMCS) surveys.
• Shortening connection timescales;
As part of the Incentive on Connections
Engagement (ICE), DNOs publish annual ICE • Enhancing the publicly available network
plans for stakeholder engagement. capacity information, eg. contracted
capacity reports;
Guaranteed Standards of Performance
• Publishing case studies; and
The guaranteed standards of Performance
are set out in Standard Licence Condition • Enhancing the connection application
15A. They include, for example, maximum and the wayleaves/consents processes.
timescales in which DNOs must provide you DNOs publish Distributed Generation 'Work
with a quotation (Connection Offer). Ofgem Plans' that outline progress against
has guidance documents about these improvement initiatives. Check your DNO’s
Standards on their website. Distributed Generation web pages.
Page 33
 Getting Connected — Energy Storage
Storage devices for electrical energy are planning to use storage in conjunction with PV
becoming more prevalent, and can be used as (or other technologies) to offset consumption,
part of Distributed Generation schemes to the total connected generation is likely to be
allow generated electricity to be stored within above 16A / phase and EREC G99 applies.
the premises rather than exported to the However, DNOs have implemented a fast track
distribution network. application process, for domestic scale
storage. This involves submitting the G99 Form
DNOs treat storage as demand when its A1-2 : Application for connection of Fully Type
importing from the distribution network and Tested Integrated Micro Generation and
generation when its exporting to the Storage installations and reduces the
distribution network, and need to be aware of connection time from 45 days to 10 days or
storage because of the potential impact on less. If the storage is intended to be operated
their networks. Therefore, storage devices in island mode (during a power outage) the
need to meet the relevant connection fast track process is not applicable and the
requirements (EREC G98 or G99). If you are standard EREC G99 process applies.

Getting Connected — Vehicle to Grid

Vehicle to Grid (V2G) is in its infancy and trials In addition, your installer should complete
are being undertaken to further understand forms associated with a standard Electric
and demonstrate its benefits. For V2G the Vehicle (EV) charge point, such as the ENA EV
electric vehicle will be considered as both a installation form (“Application Form for the
demand and a generator by DNOs. The Installation of Low Carbon Technologies”). The
application you need to submit will depend on DNO may request further information, such as
the power export capacity of the V2G unit and a photograph of your electric meter and
what generation or storage devices are already consumer unit.
connected at the designated charging point. It
is likely that V2G will be > 16 A/phase and The ENA Low Carbon Technology Working
therefore G98 is not applicable and G99 Group has been looking at ways to simplify the
should be used. connection application process and associated
forms for V2G applications, including
The current situation is that installers follow considering a single process that combines the
one of two generation application processes aspects of EV as demand and generation. The
and sets of forms, which are as follows below: ENA is currently reviewing the options to
• Where the total of all generation, fixed make this happen, with the intention to
storage and the power export capacity implement the streamlined changes for V2G
of the V2G is < 50 kW 3-phase or 17 kW connections towards the end of 2020.
single-phase, the G99 Simplified
Application Form A1-1 can be used.
• Where the total of all generation, fixed
storage and the power export capacity
of the V2G is > 50 kW 3-phase, the
connection application should be made
using the Standard Application Form.

Page 34
 Getting Connected — IDNO’s Networks
The process for connecting your Distributed host network, which could be a DNO or
Generation to an IDNO’s network follows IDNO. If your generation project would
EREC G99, and is therefore similar to cause certain network parameters to
connecting to a DNO’s network. IDNOs are exceed defined limits, such as voltage or
licensed entities and are bound by some of export to the host network, the IDNO and
the same licence conditions as DNOs, host network will explore options for
including certain performance standards such accommodating your project. This
as timescales for responding to requests for discussion will take place between the
quotes. The majority of what is included in IDNO and the host network, and will not
this guide applies to both DNO and IDNO involve you directly. However, the IDNO
connections. may then discuss different options with
you for the most appropriate generation
However, there are a few key differences for a
project to be connected.
Distributed Generation connection to an IDNO
• Formal Agreements: IDNOs will not
network:
necessarily insist on the same set of
• Provision of Information: IDNOs have a
formal agreements that the DNOs will.
reduced set of licence conditions
Agreements such as the connection and
compared with DNOs, and they are not
adoption agreements may not be
obliged to provide the same documents
required.
for customers. IDNOs are not required to
To determine whether you are connected to a
produce Long Term Development
DNO or IDNO network, refer to the guidance
Statements nor Connection Charging
methodologies and statements. on page 16.
• Interaction between the IDNO and the
Host Network: When an IDNO receives an
application for connection for Distributed
Generation, they design and build the
network infrastructure and connect to the

Where to Find More Information

If you want to find out more, these documents are particularly relevant:
• Engineering Recommendation G99, Requirements for the connection of generation
equipment in parallel with public distribution networks on or after 27 April 2019. This can
be downloaded free of charge via the DCode as well as ENA website.
• Engineering Recommendation G59, relating to the connection of generating units to the
distribution systems of licensed Distribution Network Operators. This is not applicable to
generation connecting after the 27th April 2019.
• Electricity Safety, Quality and Continuity Regulations (ESQCR) 2002, Section 22: Statutory
Instrument Number 2665, available free of charge.
• Ofgem’s information about how to get an electricity connection for a new building or site.
Some DNOs have produced their own guidance notes for generation connections - check your
DNO’s website.

Page 35
 Where to Find More Information
Other useful documents and links
• Independent Connections Providers (ICPs): see the Lloyds Register website information on
the National Electricity Registration Scheme (NERS)
• Metering Codes of Practice
• The IET Wiring Regulations (British Standard 7671) are available to buy on the IET website
• Ofgem’s information about how to get an electricity connection for a new building or site

Page 36
 Where to Find More Information
Health and Safety considerations
Safety is very important in the design of generation connections. Some of the safety
requirements for Distributed Generation connections are set out in EREC G99. This document
references the Regulation that informs these requirements, the Electricity Safety, Quality and
Continuity Regulations (ESQCR) 2002, and also lists the relevant British Standards.
You can find out more about Health and Safety aspects of Distributed Generation connections
on the following websites:
• The Electrical Safety Council (ESC): www.esc.org.uk
• The Energy Networks Association—Safety, health and environment:
www.energynetworks.org/electricity/she/overview.html

Supply Issues
Your DNO is obligated to maintain the power quality on their network within a set of defined
limits. These include maintaining voltage at the required levels. This is so that customer
equipment is not damaged. If you have a voltage complaint you should contact your DNO.
Your DNO should respond to your complaint within 5 working days, or visit within 7 working
days. If work is required to correct the issue, the DNO should complete this within 6 months.

Dealing with disputes

If you are not satisfied with a particular aspect of service during the process of connecting
your generation, your first port of call should be the party with whom the issue lies, eg. the
DNO, supplier, etc. DNOs have their complaints process set out on their website. If you still
cannot resolve the issue you can contact the Energy Ombudsman:
www.ombudsman-services.org/energy.html
If you are still unable to resolve the matter, as a last resort it can be referred to Ofgem.

Manufacturers’ Information
Manufacturers’ information is a term used in EREC G99. Along with Type Testing and onsite
tests, it is another way of demonstrating compliance of a Power Generating Module with EREC
G99 by providing information. The information is supplied by the manufacturer to the
customer, who should send it to the DNO. The suitability of the information is agreed between
the generator and the DNO.
Once the DNO is satisfied that the manufacturers’ information they have received accurately
represents the performance of the generating unit, it may be assigned a reference ID. If your
generating unit already has manufacturers’ information available and a reference ID, you can
use this reference ID in your compliance forms.

Page 37
 D. The Connection Application:
Connection Application Process
In this section :
• How to apply to your DNO to install Power Generating Modules
• Details of the connection offer that the DNO will produce for your connection
• How to notify the DNO that your Power Generating Modules have been installed and
commissioned in accordance with EREC G99

Introduction
This section of the Guide describes the installation, please refer to the section at the
application process for the connection of your beginning of this guide entitled “Distributed
Power Generating Modules to the distribution Generation Connection Guide: Is this the right
network. This includes the application for Guide for my project?”.
connection form, and the connection offer There is more information on the connection
from the DNO. application process in the Guide for EREC G99
This section also explains the forms that your Type B – D Power Generating Modules,
installer will need to provide to the DNO, including:
including: • Wayleaves for new connections;
• compliance forms, and • Interactive connection applications; and
• notifications once the units are • The Statement of Works process and
commissioned. recent developments in this area.
This section is written for installations where These are unlikely to be relevant for
the Power Generation Module to be installed connecting Type A Power Generating
is categorised as being Type A in EREC G99, Modules, but if these do impact your project,
and where the output is greater than 16A per refer to the EREC G99 Types B to D Guide for
phase. If this does not apply to your more detailed information on these topics.

The Standard Application Form

For Power Generating Modules with capacity generation on the site, and some simple
less than 50 kW 3-phase or 17 kW single phase details of the equipment you are intending to
there is a simplified connection application install.
form in Annex A.1 of EREC G99, which is
available from the ENA website. This form is For larger Power Generating Modules there is
simpler than the form required for larger a standard application form, which is available
Power Generating Modules. It requires on the ENA website and generally on DNO
information about the site, any existing websites.

Page 38
 The Standard Application From
The standard application form contains a network.
comprehensive list of data requirements to The standard application form is used as an
assist the DNO with carrying out system iterative document, developed as the
studies to assess your connection. You should connection and commission process develops.
do your best to provide as much of this It is used to record information about your
information as possible as part of your generating units that needs to be provided to
connection application to ensure your quote is the DNO before commissioning, to comply
as accurate as it can be. If you have difficulty with the requirements set out in the
with filling out this form, you can discuss this Distribution Code DDRC.
with your DNO or an adviser such as an When the application has been submitted to
engineering consultant to assist you. the DNO, they will assess the impact of the
You or your installer should submit the generation on their network. Where
application form to the DNO before any necessary, they will carry out design work, eg.
generation equipment is installed, as the DNO for network reinforcement. This will be
needs to assess the possible impact of your detailed in your Connection Offer.
generating equipment on the distribution

The Connection Offer

The Connection Offer that you will receive You will have a defined period specified in
from your DNO should contain a number of your Connection Offer within which to accept
key pieces of information. These include: the offer. This will typically be in the range 30-
90 days. Make sure you are aware how long
• details of the equipment and works
your acceptance period is, as this can vary
needed to connect your generating units
across DNOs. There is no guarantee that once
to the distribution network;
a connection offer is lapsed that a similar offer
• information about any works needed to can be made again.
extend or reinforce the DNO’s network
Connection Offers may also be withdrawn if
as a result of connecting your generating
the DNO feels that your plant is not
unit to the system;
progressing at a reasonable rate. This may be
• any technical and commercial terms measured by progress against milestones set
which will apply for the DNO to out in your Connection Offer. This is to
construct the connection and provide prevent spare capacity being ‘reserved’ for
Use of System services to the developer; projects that in practice are not actually being
• Any other useful information such as built. Your DNO may specify reasonable
whether the DNO will need to witness milestones to be met to prove the progress of
commissioning of your units. your project.

The offer will also contain details of the costs It is possible that there will be other
for the DNO to undertake any work. Further Distributed Generation in development in the
information about these costs is given in same area of the network. If this is the case,
Section E: Costs and Charges. your application may affect, or be affected by,
another connection application. In this case
Page 39
 The Connection Offer
all the relevant applications are referred to as Interactive connection applications are
“interactive”. The DNO will tell you in writing considered on the basis of ‘first come first
if your connection application is interactive served’. The DNO uses the date and time that
with one or more others. The Connection your Connection Application was made to put
Offer will also specify that it is interactive with your Connection Offer in priority order
other applications. compared to other applicants. For more
information on interactive applications, see
the EREC G99 Types B to D Guide.

Connection Conditions
The DNO may include certain conditions or If NGESO is involved in your project (eg. if your
restrictions in order for the connection to be DNO has requested a Statement of Works for
put in place. Your Connection Offer will any transmission system works required), then
include details of these, and if you need to they can impose conditions on your
know more information then you can discuss connection. Your DNO must ensure that
this with your DNO. You will have to agree to NGESO conditions are met before they allow
these conditions in order to accept the connection.
Connection Offer. Reactive Power Import / Export
Flexible Connection Offers The apparent power at any point on the
The DNO will decide if a connection is viable network is the product of the voltage and
by considering the worst case scenario for the current at that point. The apparent power is
network. If the connection of your generation made up of two components, the real power
would cause equipment ratings or statutory and the reactive power. It is likely that real
limits to be exceeded, then the DNO would power is the electrical power you are more
not allow the connection without addressing familiar with. It is measured in Watts (W), and
the issues identified. The DNO may decide is the useful power that we import into our
that the best thing to do is to reinforce the houses to run our electrical goods. However,
existing network so that it can cope with new there also needs to be a balance of reactive
power flows. However, this could be power on the network. It is the DNO’s
prohibitively expensive for your project. responsibility to ensure that the distribution
network can cater for both real and reactive
In these cases, or where the customer has power. Your generating unit will be capable of
requested, the DNO may offer a connection controlling the amount of reactive power that
with certain restrictions, such as setting a it absorbs or produces. All PGMs need to
maximum level for export, or restricting comply with G99 reactive power capabilities.
generation export under certain network It may be possible to mitigate negative effects
conditions. This could involve entering into a that your generator might have on the
specific commercial arrangement. network (eg. rise in system voltage) by
Even with a standard Connection Agreement, controlling the amount of reactive power you
in rare operational scenarios it may be produce or absorb. This may allow you to
necessary for the DNO to curtail the operation connect a higher capacity generator. You can
of a generator in order to, for example, discuss this option with your DNO.
maintain safety or power quality.

Page 40
 Compliance Forms
If your Power Generating Module is Fully Type This is done by submitting a Compliance
Tested and registered with the Energy Verification Report for each Power Generating
Networks Association (ENA) online Type Test Module. The format of this report is given in
Verification Report Register, it will have a Appendix A.2 of EREC G99. There are several
manufacturer’s reference number (or Product options (Forms A.2-1, A.2-2, A.2-3), depending
ID on the ENA website). This means that the on the size of your Power Generating Module,
Power Generating Module meets the and the type (synchronous, asynchronous,
requirements of EREC G99, and the inverter connected). These forms should be
manufacturer has submitted information to submitted prior to arranging commissioning.
the ENA that demonstrates this. You should In some cases (eg. where interface protection
include the reference number on your
is not Type Tested) you will need to
application form, and do not need to submit
demonstrate elements of compliance on site.
anything further to demonstrate compliance.
You can do this at the time of commissioning
Otherwise, your Power Generating Module (see below). In this case, there is a Form A.2-4
may comprise a mixture of type tested in EREC G99 called “Site Compliance and
components, components where the Commissioning test requirements for Type A
compliance is demonstrated using
Power Generating Modules”, which sets out
manufacturers’ information, and components
the format of recording the relevant test
that will need to be tested on site. In this case
you (or your installer) need to submit results. Where the DNO witnesses
information to indicate how you are intending commissioning, this can be submitted to the
to demonstrate compliance with EREC G99. DNO on the day. Otherwise, this should be
submitted to the DNO within 28 days.

The Installation Document

Commissioning should take place once the information;
installation and connection is complete (or in • contact details for the installer/owner of
the case of a phased installation, when the the generating unit;
phase is complete). The tests and checks
• technical information about the Power
required for commissioning are described in
Generating Module itself, including the
section 15 of EREC G99.
generating capacity, type test reference
The results of the commissioning should be and technology type;
recorded on the Installation Document, which
• details of the installer of the Power
is included in Annex A.3 in EREC G99, available
Generating Module, including the
on the ENA website.
party’s accreditation and qualifications;
You or your installer should fill out this form,
• supporting information, eg. circuit
and sign the declaration at the bottom. The
diagrams;
information required includes:
• a signed declaration as to the
• details about the site where you are
compliance of the Power Generating
connecting your Power Generating
Module with the requirements of EREC
Module, including metering
G99; and
Page 41
 The Installation Document
• a signed declaration as to the The Installation Document must be submitted
compliance with the site compliance and within 28 days of the date of commissioning
commissioning tests, if applicable (Form (including the commissioning day itself). If the
A2.-4). DNO witnesses the installation, then the form
can be filled in on the day and handed to the
There are two parts to the Installation
DNO representative.
Document:
• Part 1 is required for the Power
Generating Facility; and
• Part 2 is required for each Power
Generating Module.

Other Requirements
The declaration that your installer (or you) of these standards. If you appoint a
signs on the Installation Document requires competent installer (see Section C: An
them to confirm that they’ve installed your Overview of Getting Connected), they should
Power Generating Modules in accordance know about these standards and make sure
with EREC G99. It’s important that you use an that your installation meets with all the
installer who is familiar with the requirements relevant standards.

Page 42
 E. Cost and Charges:
Overview of Charges
In this section:
• An introduction to connection costs
• The basis of DNO connection charges for infrastructure
• Other elements of connection charges and where to find indicative
costs and examples
• Generation Distribution Use of System charges and metering arrange-
ments
Tip: Read the boxes for definitions or explanations of terms that may be new or
unfamiliar.

Introduction
There are two categories of charges made by Charges for Connection to the electricity
the DNO: distribution system. All DNOs’ statements
follow the same format, and are available on
• Connection charge: this is a one-off
charge made by the DNO, which their websites. This document contains:
primarily covers the cost of work and • The DNO’s connection charging
equipment associated with connecting methodology (i.e. how they calculate
your generating project to the their charges);
distribution network. This includes a
• The DNO’s connection charging
portion of reinforcement costs.
statement (i.e. what the charges are);
• Use of System charges: these are
• An indication of the costs of providing a
ongoing charges, which primarily cover
connection quotation / budget estimate;
operation and maintenance costs and
and
include an element to cover the costs of
ongoing network development including • Other relevant information for
general reinforcement. connecting customers.
DNOs are obliged to publish documents The basis and elements of connection charges,
describing the basis of their connection as well as indicative costs and examples are
charges and their charging methodology. discussed in this section.
They also present the different elements of Use of System charges are levied by the DNO
connection charges, and indicative costs for on the supplier, so as a generator you will not
works and equipment of significant cost. This be charged these directly. However, this
will help you to understand the charges they section is included for your information, as
quote you. This information is contained in Use of System charges may appear as an item
the DNOs Statement of Methodology and on your bill.

Page 43
 Connection Charges—Infrastructure
The connection provides an electrical path • It may be necessary to install switchgear
between your generation installation and the at a substation some distance from your
DNO’s network. Any work required to project site. This could be due to the
establish this connection will result in some increase in fault level caused by the
initial costs, which will be charged to you connection of your generator, or to
upfront as part of the connection charge. create a new protection zone.
The work required to provide this path can be • Equipment such as reactors or static VAR
broken down into two categories: compensators may be needed for times
when the voltage may rise, eg. when
1. New infrastructure (or extension) must
your generating equipment is exporting
be installed to provide an extension of
the existing network. This is from the at times of light demand.
point of connection on the existing The asset costs that are included in the
network up to the new point of supply. connection charge include:
2. Some reinforcement of the existing • Any extension to the network
network infrastructure may be required • A portion of reinforcement costs
to accommodate your planned
generation capacity. DNOs are obliged to publish a document
describing the basis of their connection
These are illustrated in the figure below and charges and their charging methodology. You
the point of connection is defined in the can refer to this document to see what
Glossary. portion of reinforcement costs you will be
Reinforcement work is usually required to charged for. These are available on DNO
increase the electrical capacity of those parts websites.
of the network which form part of the In some cases, Distributed Generation may
electrical path from the generating equipment have an effect on the transmission network. In
to the network. However, some this case your DNO may need to request a
reinforcement work does not fit this
Statement of Works from NGESO. Refer to the
description, for example: G99 Types B—D Guide for more information.

Extension and reinforcement

Before: After:
Distribution Distribution
Network Point of Network
connection

Point of Loads
Loads supply

Existing network
Distributed
Extension (new infrastructure) Generation
Reinforcement

Page 44
 Connection Charges—Other Elements
Elements of charges The connection charging methodology is
governed by the Distribution Connection and
As well as charges for the reinforcement,
Use of System Agreement (DCUSA) and is
there are other elements that are covered in
subject to open governance so any party
the connection charge. These can include the
materially affected by it can propose a change
following:
to it. The process for doing this is laid out
• System / feasibility / fault level studies within the DCUSA itself. See the DCUSA
• Provision of Wayleaves website for more information:
www.dcusa.co.uk
• Additional meetings with the DNO or
site visits The Distribution Charging Methodologies
Forum exists to enable parties to discuss ideas
• Administration for improving the methodology possibly prior
Note that not all DNOs apply charges for all of to submitting a formal change proposal.
these items, and that not all of these items Estimating costs and getting a quotation
will be relevant for your project.
As mentioned, you can obtain indicative costs
Indicative costs and examples for works and equipment from DNO
Equipment costs and charges for services vary documents. To obtain a more accurate
across DNOs; it could therefore be misleading picture of the connection costs for your
to list indicative costs in this Guide. If you project, you can:
want to get an idea for indicative costs, the • Ask the DNO for a budget estimate
best place to look is the DNO’s Statement of
methodology and charges for connection. • Obtain an estimate of connection costs
You can find this on the DNO’s website. from a specialist engineering consultant

Aside from giving indicative costs for You should exercise care in interpreting
connection charges, these documents typically budget estimates. DNOs use reasonable
contain other useful information, including endeavours to identify remote reinforcement
guidance on the connection process and costs associated with the proposed
examples of various connections and their connection at this stage. However, it is
associated cost breakdown. It is updated possible that not all of the reinforcement
annually. costs will be included at this time.

Connection Offer expenses (Assessment and Design fees)

Following a government consultation, BEIS is now allowing DNOs to charge Connection Offer
expenses (also known as Assessment and Design fees), regardless of whether or not the
subsequent Connection Offer is accepted. Connection Offer expenses are a charge by the
DNO for the cost of producing Connection Offers, and cover activities such as network
modelling, connection design and site surveys. These changes came into force in April 2018.
For further information refer to the BEIS website.
Note that DNOs are applying these charges differently. For example, some are only applying
them to projects with certain connection voltages. Refer to your DNO website for details on
how they are applying the charges.

Page 45
 Connection Charges—Other Elements
Payment of connection charges If your connection does not proceed, it is
Connection charges are paid either: possible that some of the connection charge
will be refundable depending on if the DNO
• in full at the time that the connection has performed the work. You should inform
offer is accepted; or your DNO as soon as possible if you decide not
• in staged or phased payments, as per a to go ahead with your project.
payment schedule.
Staged payments are typically used for
generation projects which are greater than a
certain size, eg. in project value or duration.
The staged payments cover committed
expenditure by the DNO.

Charging Futures Forum: The Charging Futures Forum is a programme that co-ordinates
significant reform of electricity network access and electricity network charging arrangements.
Ofgem is the chair of the programme, and members include generators, network operators,
large customers, industry bodies and universities. The programme includes holding a quarterly
forum and teams called Task Forces, which review specific issues in detail. For more information
see the Charging Futures Forum website.

What is a budget estimate?

You may read about budget or indicative estimates and formal quotations. The differences
between these two terms are summarised in the following table.
Budget or Indicative estimate Formal quotation

Requested in the early stage of a project, and Requested when electrical requirements have been
generally only for larger capital projects finalised

The DNO doesn’t require much information The DNO requires a lot of information from you
from you

Based on a desktop study—the DNO is unlikely Based on detailed design work, and may require
to carry out detailed designs or studies other input such as site surveys

To give an indication of costs, and is therefore Provides formal contract offer

subject to change

Not open for acceptance Open to acceptance, subject to conditions

DNO may charge DNO may now charge (see Assessment & Design
fees)
Assuming that you ask the DNO to undertake all of the work involved in your connection,
the timescale for the DNO to provide a budget estimate is 10 working days.

Page 46
 Use of System Charges
Use of System (UoS) charges cover operation, charging methodology and a statement of
repair and maintenance of network assets, what the chares are for both generation and
and also any reinforcement to the network demand customers. You can find these on
that might be necessary that is not covered by DNOs’ websites.
the connection charge. You can find out more about the Common
All generators with equipment connected at Distribution Charging Methodology (CDCM)
LV and HV are subject to UoS charges under and EHV Distribution Charging Methodology
the Common Distribution Charging (EDCM) from DNOs’ websites, Charging
Methodology (CDCM). Generators with Arrangements section on Ofgem website, and
equipment connected at EHV are subject to Charging Methodology section on the Energy
UoS charges under the EHV Distribution Networks Association website.
Charing Methodology (EDCM). Distribution Use of System charges have been
These charges can be negative for generation and are subject to two of Ofgem’s Significant
(ie credits). Please see the table below for Code Reviews – the Targeted Charging Review
definitions of the terms LV, HV and EHV. (TCR) and the Access and forward-looking
charges review. Significant changes are
DNOs are obliged to publish documents about
underway. For more information see the next
their UoS charges. These cover their UoS
two pages.

Definitions of LV, HV and EHV

Term Voltage level

LV (Low Voltage) In general: less than 1 kV. In practise, this means 400/230 V

HV (High Voltage) In general: 1 kV—22 kV. In practice, this means 6.6, 11 or 20 kV.
EHV (Extra High Voltage) In general this covers connection to the distribution network at or above
22 kV. In practice this means 33 or 66 kV, (or 132 kV in England and
Wales only). Some DNOs may define this slightly differently. See the
definition of EHV for your local DNO.

Page 47
 Changes to Use of System Charges
Ofgem Targeted Charging Review Ofgem’s decision is that the distribution
Ofgem has been reviewing certain elements residual charge will change from one based on
of Transmission and Distribution Use of energy demand to a fixed charge levied on all
System charges (DUoS), in a Targeted households and businesses. The charges will
Charging Review (TCR) Significant Code be applied to final demand users (i.e. not
Review (SCR). This is because they had including generation-only or storage-only
concerns that the current framework for connections). The fixed charges will be applied
charging may result in inefficient use of the in bands, according to agreed capacity or
networks and unfair outcomes for consumers. energy demand and voltage level.
The SCR was set up in response to changes in
generation, with an increasing amount of For the distribution residual charge, there will
generation from smaller sources. More no longer be a link to time of consumption
businesses and households are generating through the application of red / amber / green
their own electricity onsite, but still rely on charging periods, although this will continue
the grid for part of their supply. for the forward-looking element of DUoS
charges. This means that customers will no
The review was launched in August 2017 and longer be able to switch to behind-the-meter
Ofgem published their decision in December generation to reduce the residual element of
Use of System charges.
2019. The outcome of the review will result in
significant changes to Use of System charges,
This change is likely to impact on demand
which will affect all users.
customers with onsite generation. This is
The review considered two main elements of because customers with onsite generation
charges: consume less from the grid, thus reducing the
1. Residual charges energy-based charge under the old
2. Non-locational embedded benefits arrangements. However, the final impact on
Residual charges are designed to recover bills will depend on how suppliers pass on
sufficient network costs, so that network charges to their customers.
companies can recover their allowed revenue Embedded Benefits
as determined in price controls with Ofgem.
They were not intended as charges to send Embedded benefits are historic charging
signals for how the network should be used. arrangements that had favoured Distributed
Generation with a capacity of less than 100
Residual charges currently make up around MW, in terms of receiving revenue. There
50% of DUoS charges (although this varies were four non-locational embedded benefits:
between DNOs) and 10-15% of a typical
electricity bill, and are currently largely based 1. Transmission Demand Residual (a
on energy consumption from the network. payment to Distributed Generation): this
Under the old arrangement customers who was the largest benefit of the four and
reduced their demand from the network with was removed in June 2017.
onsite generation could reduce (or avoid) 2. Transmission Generational Residual:
paying these charges, despite still using the subject of this Targeted Charging
network, and these avoided costs were Review.
recovered from other customers.

Page 48
 Changes to Use of System Charges
3. Balancing Services Charges – payments Electricity Network Access and Forward-
from Suppliers: subject of this Targeted Looking Charges
Charging Review.
Ofgem launched the Electricity Network
4. Balancing Services Charges – avoided
Access and Forward-Looking Charges
charges: currently an avoided charge for
Significant Code Review (SCR) in December
Distributed Generation (for capacity <
2018. The scope of the review includes:
100 MW) – the Targeted Charging
Review concluded that this will be • Access rights for transmission and
addressed by a Balancing Services Task distribution users – consider
Force. improvements to non-firm access
options, time-profiled access rights and
shared access in the same local area.
The decision reached by Ofgem on items (2)
and (3) above are as follows. The Transmission • Distribution Network Use of System
Generation Residual, which was previously a charges – consider detailed changes to
payment for transmission connected the network models used to set
generation, will be set to zero. And Distributed charges, the extent of local granularity
Generation will no longer be able to receive (split DNO areas into more granular
payments from suppliers for avoided zones eg based on primary substation
Balancing Services Charges. The removal of groups), the basis on which users are
these Embedded Benefits will affect all grid charged (eg consider seasonal variation
connected generators who currently benefit in charges).
from these as a revenue stream. • Distribution connection charging
Next Steps boundary – consider a “shallower”
upfront connection charge.
Ofgem has directed Distribution and
• Transmission Network Use of System
Transmission Licensees to carry out the work
to make revisions to the relevant industry charges – consider detailed changes to
codes to enact these changes. The Embedded the network models used to set
Benefits changes are to be implemented in charges, application of TNUoS charges
2021, and the Transmission Residual Charge to Distributed Generation, and the basis
and the Distribution Residual Charge in 2022. on which users are charged (eg consider
The Energy Networks Association (ENA) seasonal variation in charges).
Project Initiation Document sets out how the Ofgem is undertaking detailed development
network companies are proposing to deliver and assessment of these options and intends
the changes. to publish their work for consultation in
autumn 2020, with a “minded to” decision
For more information, refer to the Ofgem expected by the end of 2020. Refer to the
webpage on the Targeted Charging Review. Ofgem website for more information. There is
There is also information on the Charging also information on the Charging Futures
Futures website. website.

Page 49
 Metering Requirements, Parties and Charges
Metering requirements sends the information to a central
system for balancing and settlement
You may require separate meters for
measuring your import and export. There are You can choose to contact your supplier about
two categories of meter: the provision of meters, or contract directly
with a Meter Operator. If you use HH
• Half Hourly (HH)
metering, it is your responsibility to appoint a
• Non-Half Hourly (NHH) Meter Operator. You will have to enter into a
They are described in the box on the next Meter Operator contract with a meter
page. supplier. The contracts normally last for five
years, and the Meter Operator will:
The type of meter will affect:
• Provide, install and maintain your meter;
• the meter charges you pay; and and
• what category of UoS charges apply. • Collect data from your meter via a
Section L of the Balancing and Settlement communications link such as a
Code (BSC) dictates the type of meter you will telephone line he provision of meters is
require. If you are classed as a ‘Small Scale open to competition. Details of Meter
Third Party Generating Plant’ (currently Operators and their contact details can
defined as less than 30kW capacity), you can be found on the Association of Meter
choose to have a NHH meter. Otherwise, you Operators website:
have to have a HH meter, if metering export. www.meteroperators.org.uk
HH meters can provide metering data for each There are Codes of Practice which detail
half hour period, and so can be useful for technical requirements for Metering Systems.
understanding your electricity import or These can be found on Elexon’s website.
export at different times of the day. However,
they have significant costs associated with Charges
them. The cost of Meter Operator agreements and
Parties involved the costs associated with the communication
to collect data from your meter can be in the
NHH meters are the responsibility of the order of several hundred pounds a year. You
supplier. They will appoint the following should consider obtaining quotations from a
Supplier Agents: number of Meter Operators.
• Meter Operator: installs and maintains Note: in practice suppliers may pay the owner
the meter of some smaller Distributed Generation a fixed
• Data Collector: retrieves the data amount (eg. £/year) instead of installing
recorded by the meter and calculates meters and making payments based on units
your actual or estimated volume of exported. This is something you can discuss
energy consumption with your supplier.
• Data Aggregator: sums up volumes of
energy consumed for each supplier and

Page 50
Metering Requirements, Parties and Charges

Half Hourly (HH) meters and Non-Half Hourly (NHH) meters

Meters record the flow of electricity. There are two main categories of meters; Half
Hourly (HH) and Non-Half Hourly (NHH). HH meters are for larger customers; if your
generation peak power is greater than 30 kW you have to use a HH meter, if metering
export.

NHH meters record total energy passing through the meter, but do not record the times
the energy is transferred. Typically the recorded data would be collected a few times a
year, eg. every quarter. In contrast, HH meters measure and record energy passing
through the meter for each half hour period. The data they record is typically collected
remotely every day, for example by a telephone line.

Domestic properties are being encouraged to have a smart meter installed. Smart meters
record total energy passing through the meter every HH. The introduction of smart
meters should improve consumer awareness of energy consumption and will allow for
the introduction of time of use tariffs .

Data from meters is used to determine charges and rewards. For example, to calculate:
• Imbalance charges for balancing and settlement
• Distribution or Transmission UoS charges
• Renewables Obligations Certificate rewards

Page 51
 F. Selling Electricity:
Smart Export Guarantee (SEG)
In this section:
• An introduction to the Smart Export Guarantee (SEG) Incentive
• Eligibility and Accreditation
• Deployment caps and how they work
• Guidance on where to find more information
Tip: Read the information boxes for definitions or explanations of terms that
may be new or unfamiliar.

Introduction
Smart Export Guarantees (SEGs) are a financial A number of domestic Combined Heat and
incentive to support distributed and small- Power (CHP) units are also supported through
scale renewable energy generation, up to a FITs under a Micro CHP pilot scheme. The
capacity of 5 MW. Micro CHP pilot will support up to 30,000
installations with an electrical capacity no
SEGs are available for the following generation greater than 2 kW.
technologies:
• Anaerobic digestion (AD) This section will detail the structure of the
• CHP and Micro-CHP tariffs and will explain how to get accredited
• Hydro with SEGs.
• Solar PV
• Wind

Important Point: The SEG scheme for generators opened on the 1st January 2020. The SEG
scheme replaces the Feed-in Tariff (FIT) scheme that closed on the 31st March 2019 but works
differently to FITs.

There are two sources of financial benefit from FIT payments which are:
• Generation tariff: A fixed unit for each unit of electricity generated.
• Export tariff: A guaranteed price for each unit of electricity exported to the grid.
The SEG scheme obliges electricity suppliers to offer an export tariff rate to an eligible generating
unit.

Generators cannot receive SEG payments as well as FIT payments for exported electricity.
However, if the generator continues to receive FIT generation payments and opts out of
receiving FIT export payments then they are eligible to receive SEG export tariff payments.

Page 52
 Tariff Structure
The main financial benefit from a generation Metering Requirements
project under the SEG scheme is the export All new installations that wish to export
tariff, which is a guaranteed price for each unit renewable energy to the grid must have an
of electricity exported to the grid. export meter installed. The export meter must
It is an obligation for licensed energy suppliers be capable of taking half-hourly
to offer eligible generation projects an export
measurements and have an export MPAN
tariff rate. The electricity suppliers decide the
(Meter Point Administration Number). The
SEG export tariff details i.e. the rate and the
export meter must be located at the point
length of the contract. However, although
wholesale electricity prices can fall below zero where the installation connects to the
due to changes in demand, electricity network. Smart meters are capable of
suppliers must always offer a tariff which is measuring half-hourly export energy so will
greater than zero. not need physically changing.

The tariffs are variable and can be adjusted

Your electricity supplier is a good first port of
annually for inflation. Generators should
call to discuss metering arrangements.
contact electricity suppliers in the first
However, note that you can opt to receive SEG
instance for more information on the SEG
payments from a different electricity supplier
scheme and what rates are offered. A full list
from your import electricity supplier.
of the electricity suppliers that are offering
payments have been published by Ofgem, and
you can access them on their webpage below:
https://www.ofgem.gov.uk/publications-and-
updates/seg-supplier-list

As an indication, at the start of 2020 the Smart

Export Guarantee rates were typically in the
range 1.0 – 5.6 p/kWh, depending on the
supplier.
FIT Scheme – Generation and Export Tariff
Installations which receive payments under
the FIT scheme will continue to receive the
same generation and export tariffs that were
current at the time of installation The last
export tariff under the FIT scheme, before the
scheme closed on the 31st March 2019, was
fixed at 5.24p/kWh. This differs from the
export tariff rate offered through the SEG
scheme, which depends on the electricity
supplier you choose to contract with.

Page 53
 Eligibility and Accreditation
Renewable Energy generators under 5 MW https://www.ofgem.gov.uk/publications-and-
are eligible for SEGs. updates/smart-export-guarantee-guidance-
generators
Accreditation steps:
For installations that are greater than 50 kW,
For wind or solar PV generation up to and
you will be required to demonstrate that the
including 50 kW, and for micro CHP, the
installation is suitably certified. Each electricity
accreditation process is as follows:
supplier will have their own requirements for
demonstrating certification, but these are
1. Install your generating unit—you must
expected to include the EREC G99 Installation
demonstrate that the installation and
Document and proof of ownership.
installer are suitably certified by using a
Microgeneration Certification Scheme
For all AD and Hydro installations, you are
(MCS) installer (see below);
required to provide evidence that the
2. Install a smart meter to measure export
installation is suitably certified for a capacity
energy every half-hourly;
up to and including 5 MW.
3. Apply for a SEG with your electricity
supplier, and provide them with any
For AD installations, an additional step is
documentation to demonstrate
required to gain accreditation, which involves
compliance so that they can verify your
submitting separate and ongoing
eligibility;
documentation to Ofgem, in the form of
4. Your electricity supplier will then be
Quarterly sustainability declarations and
responsible for the level of payment you
Annual feedstock declarations. More
will receive for the electricity exported,
information is available on Ofgem’s website:
for which you will be required to provide
https://www.ofgem.gov.uk/publications-and-
export meter readings.
updates/guidance-anaerobic-digestion-
See Ofgem’s website below for more guidance generators-seg-sustainability-criteria-and-
into receiving SEG payments: reporting-requirements

Microgeneration Certification Scheme (MCS)

The MCS is currently the only formalised industry standard in the UK based on European and
international standards for microgeneration projects. MCS is a BS EN ISO/IEC 17065:2012
Certification scheme covering Renewable Energy products wind and PV up to 50 kW
(electrical), solar thermal, biomass and heat pumps up to 45 kW (thermal), Micro CHP and
hydropower and Renewable Energy installation companies.
MCS checks for the products’ performance and quality and for the installation methods and
quality. MCS will increase your confidence in the Renewable Energy technology you are
buying and in the company installing it.

For more information please refer to the MCS website: www.microgenerationcertification.org

Page 54
 Eligibility and Accreditation

Multi-technology sites: Electricity suppliers have an obligation to accept a request for SEG
payments from a generator that is exporting from an eligible site. However, if the export meter
records the energy exported from a combination of eligible and non-eligible SEG sources at the
same site, an electricity supplier does not have to make payments. You should check the
options and terms from different electricity suppliers carefully.

Extensions to SEG installations: The capacity of a generation unit of one particular technology
can be increased. However, if the installed capacity of the generating unit exceeds 5 MW then
the electricity supplier does not have to make SEG payments for the export that exceeds 5
MW. If you choose to install extra capacity at your site from a different technology source,
then the electricity supplier will recognise this as a separate eligible source and will be able to
make payments for the capacity of this technology up to 5 MW. For example, a 7 MW PV solar
array and a 3 MW wind farm would be eligible for SEG payments for 5 MW PV and 3 MW wind.

Local Flexibility Markets: As part of the ENA Open Networks Project, a workstream dedicated
to Flexibility Services (WS1A) is looking at the best way to implement markets for flexibility
services offered by Distributed Generation. Where co-located with demand, Distributed
Generation can offer Flexibility Services to the network by adjusting onsite demand and
generation in order to keep the network balanced, relieve congestion, and release network
capacity. This allows more Low Carbon Technologies (LCT), such as renewable generation, to
connect to the network. The DNOs created the ENA Flexibility Commitment in December
2018, which is the first step towards expanding the Flexibility Markets to local level.
For more information refer to the ENA’s website:
https://www.energynetworks.org/electricity/futures/flexibility-in-great-britain.html
And look for details of Flexibility Services on your DNO’s website.

Page 55
 Where to Find More Information
For more guidance and the most up-to-date information on the Smart Export Guarantee, please
see the following organisations’ websites:
• Ofgem – About Smart Export Guarantee (SEG)
https://www.ofgem.gov.uk/environmental-programmes/smart-export-guarantee-seg/
about-smart-export-guarantee-seg
• Department for Business, Energy and Industrial Strategy (BEIS) — The future for small-scale
low carbon generation: Smart Export Guarantee – government response
https://www.gov.uk/government/consultations/the-future-for-small-scale-low-carbon-
generation

Page 56
 F: Selling Electricity-
Contracts For Difference
In this section:
• An introduction to renewable electricity incentives
• Contracts for Difference
• The Renewables Obligation closure
• Guidance on where to find more information

Tip: Read the information boxes for definitions or explanations of terms that
may be new or unfamiliar.

Introduction
This section of the Guide focuses on Feed in There are various other power trading options
Tariffs with Contracts For Difference (CFD). for Distributed Generation, including:
This is the main financial incentive mechanism
• Selling your electricity on the wholesale
for larger schemes of low carbon generation.
market or to an electricity supplier
It has replaced the Renewables Obligation
(RO), which closed to new applications in • Levy Exemption Certificates (LECs)
March 2017. The RO closure does not affect • Embedded benefits
generation that was already accredited before
the relevant closure date. • Ancillary services

This section introduces the CFD mechanism, • EU Emissions Trading System (ETS)
and explains how you, as a generator, can These have been discussed briefly in Section
benefit. Key elements of the CFD scheme are B. The Role of Distributed Generation:
introduced. The application process for a CFD Benefits of Distributed Generation, which also
is much more complex than for the SEG points to further reading on these topics.
scheme. You are referred to relevant Beyond that, they are outside of the scope of
websites and documents for more this Guide.
information.

Page 57
 Contracts for Difference (CFD)
• Ofgem: regulates National Grid as the
Introduction
EMR Delivery Body and determines
A Contract for Difference is a bilateral contract disputes.
between a generator and the Low Carbon
Contracts Company (LCCC, the CFD Eligibility
counterparty), which is government owned. A There are a number of eligibility criteria for
generator with a CFD is paid the difference the CFD, including:
between the “strike price” and the “reference
• Meet qualification requirements, eg.
price”. The strike price is an agreed price for
evidence of planning permission,
electricity reflecting the cost of investing in
counter signed connection offers,
low carbon generation. The reference price is
generation type;
a measure of the GB market price for
electricity. • Not considered an excluded applicant
eg. in receipt of another subsidy; and
CFDs require generators to sell electricity into
the market as usual. But to reduce their • Provision of other information / data,
exposure to market prices, the CFD provides a eg. incorporation information (details of
variable “top up” payment. When the strike different parties involved).
price is higher than the reference (market) CFD Allocation
price, the generator receives a payment. At
times when the market price exceeds the CFDs are awarded in rounds. During a round, if
strike price, the generator is required to pay the specified budget for CFDs is not exceeded,
back the difference, thus protecting all qualifying applicants will be awarded CFDs.
consumers from over-payment. If the budget is exceeded, the Delivery Body
will run an auction to allocate CFDs.
Parties involved
Rounds 1 and 2 took place in 2015 and 2017
A number of parties are involved in the CFD respectively, and CFDs have been allocated. In
mechanism. They include, with examples of Round 1 there were 27 successful applicants,
their roles: with project installed capacities ranging from
• Government: writes the policy, specifies 6 to 714 MW, and strike prices ranging from
the eligibility criteria and sets the £50 to £119.89 (in 2012 prices). In Round 2
budgets and rounds. there were 11 successful applicants, with
project installed capacities ranging from
• Low Carbon Contracts Company (LCCC):
50 kW to 1,386 MW, and strike prices ranging
signs the CFD and forecasts CFD
from £40 to £74.75 (in 2012 prices). Round 3
payments.
is now complete and Round 4 is opening in
• National Grid (Electricity Market Reform 2021.
(EMR) Delivery Body): runs the system
National Grid publishes a Contract for
for users to register, submit and manage
Difference Interactive Guidance document
applications; assesses the eligibility of
which provides details on the CFD process.
applicants; and runs the CFD allocation
Also see BEIS and the EMR Delivery Body
process.
websites for the latest information.
• EMR Settlement Ltd (Settlement Services
Provider): collects metering data,
calculates payments and manages the
settlement of payments between
generators and suppliers.
Page 58
 Renewables Obligation
The Renewables Obligation (RO) closed to all The grace periods are available on Ofgem’s
new generating capacity on 31 March 2017. website.
This was previously the main incentive Operators that are successful in their grace
mechanism for larger renewable generation. period application will have the opportunity to
The closure does not affect capacity apply for accreditation under the RO after the
accredited before the relevant closure date, 31 March 2017.
which will continue to receive full 20 year
support until the end of the scheme in 2037. For more information on the closure of the
RO, refer to Ofgem’s website.
There are a number of grace periods, which
allow generators to gain accreditation under
the RO in certain circumstances after 31
March 2017. The availability of grace periods
differs across England and Wales, Scotland
and Northern Ireland .

Where to Find More Information

For Contracts for Difference (CFD) refer to the BEIS website:
https://www.gov.uk/government/collections/electricity-market-reform-contracts-for-difference
National Grid as the Delivery Body for CFDs has a website:
https://www.emrdeliverybody.com/cfd/home.aspx
The Ofgem website has details on the Renewables Obligation closure:
https://www.ofgem.gov.uk/environmental-programmes/ro/about-ro/ro-closure

Page 59
 Glossary of Terms
Adoption Agreement: An agreement between a developer of Distributed Generation and a Distribution
Network Operator (DNO) and / or an Independent Connections Provider (ICP) concerning the transfer into
DNO ownership of infrastructure supplied and installed by an Independent Connections Provider (ICP).
Aggregator: An organisation which specialise in co-ordinating demand and generation (including storage)
to provide demand response and other market services. Network Operators and Suppliers may buy
demand response and other grid balancing services from aggregators.
Ancillary Services: Services such as the provision of reactive power support and black start capability by a
Generator to NGESO as part of an Ancillary Services Agreement with NGESO.
Apparent Power: The apparent power (measured in Volt-Amps or VA) at any point on the network is the
product of the voltage and current at that point. The apparent power is made up of two components, the
real power and the reactive power.
Auxiliary equipment: Any apparatus not directly a part of the boiler equipment or Generating Unit, but
required for the boiler equipment or Generating Unit's functional operation.
Balancing and Settlement Code (BSC): The Code which determines the rules governing the Balancing
Mechanism and settlement process for electricity trading in Great Britain. A BSC Panel has been charged
with overseeing the management, modification and implementation of the BSC rules, as specified in
Section B of the BSC. The Balancing and Settlement Code Company (ELEXON) supports the BSC Panel.
Balancing Mechanism: NGESO has a licence obligation to manage the Transmission System and, and
needs to have an arrangement in place for the scenario where more energy is generated than consumed,
or vice versa. Unchecked, this would result in system frequency falling or rising to an unacceptable
degree. The balancing mechanism provides a means by which NGESO can buy or sell additional energy
close to real-time to maintain energy balance, and also to deal with other operational constraints of the
Transmission System.
Capacity: See Registered Capacity.
Capacity Market: A market that aims to ensure security of electricity supply by providing a payment for
reliable sources of capacity.
Connection Agreement: An agreement setting covering the conditions under which your generating
equipment is allowed to be physically connected to the DNO network and remain connected and
energised while the network is operating normally.
Contestable: That part of the connection works which is open to competition.
Contracts for Difference (CFD): A bilateral contract between a generator and the Low Carbon Contracts
Company (LCCC, the CFD counterparty).
Climate Change Levy (CCL): Part of a range of taxation measures designed to help the UK meet its legally
binding commitment to reduce greenhouse gas emissions. This levy / tax is chargeable on the industrial
and commercial supply of taxable commodities for lighting, heating and power by consumers in the
following sectors of business: industry, commerce, agriculture, public administration and other services.
Connection and Use of System Code (CUSC): Contractual framework for connection to and use of the
National Electricity Transmission System.
Declared Net Capacity (DNC): Unless the energy source for your generating unit is wind, solar, wave or
tidal, then the declared net capacity is equal to the maximum power available for export on a continuous
basis minus any power imported by the station from the network to run its own site. For wind, solar, wave
and tidal, the declared net capacity is this value multiplied by a constant as follows: wind, 0.43; solar, 0.17;
wave or tidal, 0.33.

Page 60
 Glossary of Terms
Distribution Code: The code required to be prepared by a DNO pursuant to condition 21 (Distribution
Code) of a Distribution Licence and approved by the Authority (The Gas and Electricity Markets Authority -
Ofgem) as revised from time to time with the approval of, or by the direction of, the Authority.
Distributed Generation (DG): A generating unit which is connected to a distribution network rather than
to the transmission system. Distributed Generation is generally smaller than generating units connected
to the transmission system as the maximum operating voltage of distribution networks is 132 kV in
England and Wales and 33 kV in Scotland.
Distribution Network: The distribution network is the system that comprises the equipment between the
transmission system and the customer’s service switch. In England and Wales the distribution networks
are the lines with a voltage less than or equal to 132 kV. In Scotland the distribution network is composed
of lines with an operating voltage of less than 132 kV.
Distribution Network Operator (DNO): A holder of a Distribution Licence, the DNO owns, operates and
maintains a Distribution network and is responsible for confirming requirements for the connection of
Distributed Generation to that network.
Embedded Generation: Another term used for Distributed Generation. See above.
Embedded Benefits: Embedded benefits are historic charging arrangements that had favoured Distributed
Generation with a capacity of less than 100 MW, in terms of receiving revenue. These are changing after a
review by Ofgem (refer to Chapter E for more information).
Energy Service Company (ESCO): A Government paper defines ESCOs as “a company that provides a
customer with energy solutions” rather than simply being an electricity or gas supplier.
EU Emissions Trading System (ETS): Formerly referred to as the EU Emissions Trading Scheme, the EU
Emissions Trading System (EU ETS) is one of the key policies introduced by the European Union to help
meet its greenhouse gas emissions reduction target. It is a Europe-wide cap and trade scheme that
started in 2005. The EU ETS covers electricity generation and the main energy-intensive industries.
Exemption Order (Generation License): Certain generating units that are not obliged to hold a generation
licence under the terms of Statutory Instrument 2001 No. 3270, The Electricity (Class Exemptions from the
Requirement for a Licence) Order 2001.
Extra High Voltage (EHV): This term is not defined in the Distribution Code, which only defines High
Voltage (HV) and Low Voltage (LV). In general EHV refers to a voltage above 22kV. In practice this means
33 or 66kV, or 132 kV (England and Wales only). Refer to your DNO’s definition.
Extension: It is sometimes necessary to extend the DNO’s distribution network in order to provide a
connection for a new user (demand or generation customer).
Fault Level: Prospective current that would flow into a short circuit at a stated point in the system.
Fully Type Tested: The whole Power Generating Module is type tested, rather than just part of the Power
Generating Module.
Generation Licence: A licence granted or to be granted under section 6(1)(a) of the Act - Statutory
Instrument 2008 No. 2376. This licence is obtained from Ofgem.
Generator: A person who generates electricity under licence or exemption under the Electricity Act 1989.
Grid Code: The code which the GB System Operator (NGESO) is required to prepare under its Transmission
Licence and have approved by the Authority (Ofgem) as from time to time revised with the approval of, or
by the direction of, the Authority.

Page 61
 Glossary of Terms
Grid Supply Point (GSP): Any point at which electricity is delivered from the national electricity
transmission system to the DNO’s Distribution system.
Harmonics: A component of a periodic wave with a frequency that is a multiple of the frequency of the
original wave.
High Voltage (HV): A voltage exceeding 1000 V AC or 1500 V DC between conductors, or 600 V AC or
900 V DC between conductors and earth. In general DNOs consider that HV are voltages in the range of
1 kV to 22 kV.
Independent Connections Provider (ICP): Companies that have been thoroughly assessed and granted
the necessary accreditation to provide new connections in competition with the DNOs.
Independent Distribution Network Operator (IDNO): A holder of a distribution licence, an IDNO designs,
builds, owns and operates a distribution network, which is an extension to existing DNO network. They
typically build network for new developments such as business parks, retail and residential areas and
leisure facilities.
Interface Protection: The electrical protection required to ensure that the generation is disconnected for
any event that could impair the integrity or degrade the safety of the Distribution Network.
Large Power Station: A power station which is connected to a system in:
• National Grid’s Transmission Area with a Registered Capacity of 100 MW or more;
• SP Transmission plc’s Transmission Area with a Registered Capacity of 30MW or more; or
• Scottish Hydro Electric Transmission plc’s Transmission Area with a Registered Capacity of
10MW or more.
Levy Exemption Certificates (LECs): These exemptions favour energy efficient technologies or sustainable
power units; good quality Combined Heat and Power (CHP) and renewable electricity could be granted,
under certain conditions, Levy Exemption Certificates (LECs) for each kWh of electricity generated and the
LECs could be used to obtain Climate Change Levy (CCL) Exemption, and therefore avoid paying the CCL
tax applied on energy supplied to industrial and business users. Directly related to the Climate Change
Levy (CCL) as some supplies are excluded or exempt from the levy while others have a reduced or half-
rate.
Low Voltage (LV): A voltage normally exceeding 50 V AC between conductors and earth or 120 V DC
between conductors but not exceeding 1000 V AC or 1500 V DC between conductors or 600 V AC or 900 V
DC between conductors and earth.
Medium Power Station: A Power Generating Facility with a registered capacity of 50 MW or more but less
than 100 MW in England and Wales (by definition, there are no medium power stations in Scotland). In
EREC G99 this is known as an Embedded Medium Power Station.
Micro-generator: A source of electrical energy and all associated interface equipment able to be
connected to an electric circuit in a Low Voltage electrical installation and designed to operate in parallel
with a public Low Voltage Distribution Network with nominal currents up to and including 16 A per phase.
National Electricity Transmission System Operator (NETSO): Operates the electricity transmission system
in England, Wales and Scotland (see System Operator).
National Grid Electricity Transmission (NGET): Owns the electricity transmission network in England and
Wales. NGET is a member of the National Grid group of companies.
National Grid Electricity System Operator (NGESO): Operates the transmission system in England, Wales
and Scotland (takes the role of the NETSO). NGESO is a member of the National Grid group of companies.

Page 62
 Glossary of Terms
Ofgem: The Office of Gas and Electricity Markets.
Point of Connection: The interface at which the Power Generating Module or Generator’s Installation is
connected to a Distribution Network, as identified in the Connection Agreement.
Point of Supply: The point at which the Distribution Network is to be connected into the customer site.
Protection Settings: The provisions for detecting abnormal conditions in a System and initiating fault
clearance or actuating signals or indications.
Power Exchange: Market and clearing services for the UK Wholesale Power Market are provided by EPEX
SPOT (part of the APX Group) and Nord Pool Spot AS (NPS), which operates under the name N2EX. N2,
the UK market offering, will initially be a marketplace for Physical UK Power contracts and launch a
platform for financial futures contracts further into 2009: a physical market and a futures market. From
the outset N2 will operate as a physical power exchange providing platforms for the trading of UK Power
contracts. This can be divided into three product areas: the Spot Market, the Prompt Market and the Day
Ahead Auction Market (DAM).
Power Generating Facility (PGF): One or more Power Generating Modules connected to at one or more
Connection Points. This is a Power Station in EREC G59.
Power Generating Module: Either a Synchronous Power Generating Module or a Power Park Module.
A Synchronous Power Generating Module is an indivisible set of Generating Units (i.e. one or more units
which cannot operate independently of each other) which can generate electrical energy such that the
frequency of the generated voltage, the generator speed and the frequency of network voltage are in a
constant ratio and thus in Synchronism.
A Power Park Module is one or more Generating Units (including storage devices) generating electricity,
which is either asynchronously connected to the network or connected through power electronics, and
has a single connection point to a Distribution Network.
Power Generating Facility: One or more Power Generating Modules connected to a Network at one or
more Connection Points. This is also known as a Power Station in some regulatory documents.
Reactive Power: Reactive power (measured in Volt-Ampere reactive, or VAr) is a component of apparent
power (see apparent power definition above).
Real Power: Real power (measured in Watts, or W) is a component of apparent power (see apparent
power definition above). It is likely that real power is the electrical power you are more familiar with. It is
the useful power that we import into our houses to run our electrical goods.
Registered Capacity: The normal full load capacity of a generation set as declared by the generator less
the MW consumed when producing the same. For a customer with own generation this will relate to the
level of output they expect to export to the DNO’s Distribution System.
Registered Data: Data referred to in the schedules to the Distribution Data Registration Code.
Reinforcement: Reinforcement work is usually required to increase the electrical capacity of those parts
of the network which are affected by the introduction of new generation or demand. Other work might
include upgrading the switchgear at a substation some distance from the proposed generation project,
due to the increase in fault level caused by the connection of generating equipment.
Renewable Obligation Certificates (ROCs): A green certificate issued to an accredited generator for
eligible renewable energy generated within the UK and supplied to customers within the UK by a licensed
electricity supplier. ROCs are issued for each MWh of eligible renewable output generated, the amount of
ROCs received depend on the technology of the generating station.

Page 63
 Glossary of Terms
Retail Price Index (RPI): General purpose measure of inflation used in the UK.
Reverse Power Flows: Power flows in the opposite direction to those associated with the consumption of
electricity by users.
Site Responsibility Schedule: Also called a Joint Operational Agreement. A schedule defining the
ownership, operation and maintenance responsibility of equipment and Apparatus at the Point of Supply
of the DNO.
Supplier (Electricity Supplier): Electricity suppliers purchase electricity (on the market or in contracts) and
sell electricity to customers (commercial, industrial and domestic).
Transmission Network (System): A system of electricity lines and equipment owned by the holder of a
Transmission Licence and operated by the GB SO, which interconnects Power Stations and substations. In
England and Wales the transmission system is the equipment principally rated above 132 kV while in
Scotland they are those principally at or above 132 kV.
System Operator (SO): The operator of the transmission networks, the System Operator balances supply
with demand on a minute by minute basis.
System Voltage: The voltage at which an electrical network is operated.
Thermal Rating: The current-carrying capacity of a cable, an overhead line or any other item of electrical
infrastructure, which is determined by the heating effect arising from electrical losses.
Type Tested Equipment: Equipment that has been tested in accordance to ensure that it meets the
requirements of EREC G98 or G99. Using type tested equipment simplifies the connection and
commissioning process.
Use of System (UoS): The use of a transmission or distribution system by a generator, supplier, customer
or an interconnected party for the purposes of transporting electricity.
Voltage Flicker: Voltage flicker is a deviation in system voltage, where power is not completely lost.
Flicker may be defined as the sensation experienced by the human eye when illumination levels change as
a result of the change in voltage.
Voltage Fluctuation: Fluctuations in the supply voltage that can be caused by a fluctuating load, and which
in turn cause flicker.
Voltage Unbalance: Occurs where there exists a difference in voltage magnitude between phases and/or
a shift in the phase separation from 120° (for a three-phase system).

Page 64
 References
Standards and other documents:
Balancing and Settlement Code (BSC) is available free of charge on Elexon’s website
Connection and Use of System Code (CUSC) is available free of charge on National Grid’s website
Distribution Code of Great Britain—available free of charge on the Distribution Code website
Engineering Recommendation G59, relating to the connection of generating equipment to the distribution
systems of licensed Distribution Network Operators. This is not applicable to generation connecting
after the 27th April 2019.
Engineering Recommendation G81 is called “Framework for design and planning, materials specification,
installation and records low voltage housing development installations and associated new HV/LV
distribution substations”. It can be found free of charge on the Energy Network Association’s website
Engineering Recommendation G98: Requirements for the connection of Fully Type Tested Micro-
generators (up to and including 16 A per phase) in parallel with public Low Voltage Distribution Networks
on or after 27 April 2019— available to download on the DCode website or ENA.
Engineering Recommendation G99: Requirements for the connection of generation equipment in parallel
with public distribution networks on or after 27 April 2019— available to download on the DCode website
or ENA.
Electricity Safety, Quality and Continuity Regulations (ESQCR) 2002, Section 22: Statutory Instrument
Number 2665, available free of charge
Grid Code of Great Britain — available free of charge on National Grid’s website
IET Wiring Regulations (British Standard 7671) are available to buy on the IET website
Metering Codes of Practice
Requirements for Generators is available free of charge on the EUR-Lex website.
Requirements for micro-generating plants to be connected in parallel with public low-voltage distribution
networks (BS EN 50438) is available to buy on the BSI website
Statutory Instrument 2001 No. 3270, The Electricity (Class Exemptions from the Requirement for a
Licence) Order 2001
Statutory Instrument 2008 No. 2376, The Electricity (Applications for Licences, Modifications of an Area
and Extensions and Restrictions of Licences) Regulations 2008

Page 65
 References
Useful websites:

Agency for the Cooperation of www.acer.europa.eu

Energy Regulators (ACER)
Association of Meter Operators www.meteroperators.org.uk
British Hydropower Association www.british-hydro.org
Renewable UK http://www.renewableuk.com/
Carbon Trust www.carbontrust.com

The Council of European Energy www.ceer.eu

Regulators (CEER)

The Association for Decentralised www.theade.co.uk

Energy (combined heat and
power)
Department for Business, Energy https://www.gov.uk/government/organisations/department-for-
& Industrial Strategy business-energy-and-industrial-strategy
Distribution Connection and Use www.dcusa.co.uk
of System Agreement (DCUSA)
website
Electricity Networks Strategy https://www.gov.uk/government/groups/electricity-networks-
Group strategy-group
Elexon www.elexon.co.uk
Energy Networks Association www.energynetworks.org
Energy Saving Trust www.energysavingtrust.org.uk/Generate-your-own-energy
Energy UK www.energy-uk.org.uk

ENTSO-E www.entsoe.eu
Lloyds Register www.lr.org/sectors/utilities/schemes/ners.aspx
Microgeneration Certification www.microgenerationcertification.org
Scheme
National Grid www.nationalgrid.com/uk/Electricity/

Ofgem www.ofgem.gov.uk
Renewable Energy Association www.r-e-a.net

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 References
Relevant reports and guides:

Electricity Trading Arrangements: A Beginner’s Guide; Elexon

Embedded Generation and Embedded Benefits; Elexon; November 2013

The Electricity Networks Innovation Strategy; Energy Networks Association; 2020

The Open Networks project; Energy Networks Association

The Clean Growth Strategy; BEIS; 2018

Upgrading our energy system: smart systems and flexibility plan; BEIS; 2018

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 Revisions

Version Date Details of Changes

Number

1.0 October 2020 Minor revisions have been made. Changes include:
• General Updates
• Update of V2G
• Update to RfG requirements for storage
• Update to ENA Open Networks Project
• Update to Chapter F
• Update to Type Testing
• Update to Ofgem Targeted Charging Review
• Update to BSUoS

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