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Rationalising Micro-generation Exports

In this Rationalising Micro-generation Exports insight paper produced by Pixie Energy, we set out a four-part solution to ensure the continuation of a guaranteed route to market for micro-generation exports as the Feed-in Tariff (FiT) scheme closes to new investment on 1 April 2019. This paper builds on the September 2018 UnFiT for Purpose insight paper from Pixie Energy in which we argued for a safety net for export volumes from smaller micro-generation installations. This comprised: retention of an obligation on larger suppliers to offer terms for exports; a transitional period on new low-carbon generators under a defined threshold where the current offtake market is immature; and an administered export price based on electricity imbalance prices.  

Our new Rationalising Micro-generation Exports paper argues that deeming of export volumes for new sub-30kW installations should be retained, to ensure parity with existing FiT installations. Critically, there is a need for transitional measures to be introduced into the Balancing and Settlement Code (BSC) ahead of the completion of the smart meter roll-out and the associated industry work programme to implement market-wide half-hourly settlement. We provide four workable options that would allow deemed export volumes to be recognised within the electricity industry settlement system, and therefore provide an incentive—which currently does not exist—for suppliers to contract with the smallest of generators as part of their wider commercial strategy. Importantly this will preserve incentives to install smart metering (that can measure export volumes) and allow market access for new and existing installations where present metering arrangements and industry incentives result in volumes ‘spilling’ on to the system. ‘

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Nigel Cornwall, Pixie Energy Director commented

"If the market for new micro-generation is not to crash, there needs to be a guaranteed route to market for new small renewables generators. We make some practical proposals that are intended to fill the policy void to achieve this."