Generation Dominated Areas

Synopsis

Ofgem published their consultation on future network charging arrangements on 23 July 2018 (www.ofgem.gov.uk/publications-and-updates/getting-more-out-our-electricity-networks-through-reforming-access-and-forward-looking-charging-arrangements). Within this consultation, Ofgem sets out its intent to consider whether Low and High Voltage generation within Generation Dominated Areas  (GDA) should incur a charge rather than always receive a credit, as is currently the case. 

To assist embedded generators assess whether they currently connect to a GDA, Energy Potential has compiled an impact analysis. This analysis is based upon data compiled and published by DNOs in 2015 when the issue of GDAs was last considered. Although this data is a number of years out of date, it is probably the best data currently available to provide an indication of whether a primary substation is considered generation dominated and would be captured if Ofgem decide to charge generators in these areas.

The spreadsheet below provides the a list of the primary substations  that are considered to be generation dominated. In some cases the MPANs of HV connected generation is also provided. The definition of a Generation Dominated area used is as follows:

1. Test 1 seeks to identify if the maximum generation connected to the substation would be greater than the minimum capacity of the substation once the minimum demand is taken into account. This is effectively the summer minimum demand test; and
2. Test 2 then seeks to identify if the maximum generation connected to the substation would be greater than the maximum demand at the substation. This effectively tests to see if the substation would need reinforcing for demand purposes before needing reinforcing for generation purposes

The data set also sets out the timescale when the primary substation is expected to become generation dominated, by applying the two tests above at 2.5, 5, 7.5 and 10 years. Whether this definition of GDA will be adopted by Ofgem remains to be seen. Also, the actual mechanism for applying charges is unknown. The proposal from DNOs in 2015 (which was rejected by Ofgem) was that generators in GDAs should have their credits reduced based on the time to the network becoming generation dominated with those primaries closest to reinforcement having their credits removed altogether.
I hope this is useful and please contact me directly if you would like any more information on this area: andy.pace@energy-potential.com 

list_of_gda_primaries.xlsx
File Size:	22 kb
File Type:	xlsx

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