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Distributed Energy

In the Energy Review, published in July, the Government announced a comprehensive review of the incentives and barriers that impact on distributed electricity generation, including combined heat and power, to be undertaken jointly with Ofgem.

The review is examining all aspects of these incentives and barriers, including:

• The economic and other incentives for suppliers to buy electricity from distributed generators;
• Options for resolving potential barriers to the sale of electricity from small generators, for example:
  • licensing procedures
  • technical standards for connection and for network operation;

• The economic costs and benefits, and other incentives, for Distribution Network Operators (DNOs) to connect new generators and to invest in upgrading distribution networks in order to accommodate increasing amounts of distributed generation; and
• The incentives for DNOs to engage in innovation aimed at minimising the costs and capturing the benefits of distributed generation

As part of this review, DTI and Ofgem have jointly published this call for evidence to seek the input of interested parties.  The deadline for responses is Tuesday 2nd January 2007.  We will draw the results of this review, and various consultations, together into a new Energy White Paper early next year.