Changes to the embedded benefits regime for distributed generators would help the government achieve its energy trilemma aims.
That’s according to a report by KPMG, which follows government’s considerations to which embedded benefits should be modified.
‘The effects on the Energy Trilemma of changes to Embedded Benefits’ report stated the modifications would enhance security of supply, contribute to decarbonisation and bring down energy bills.
Distributed generators are connected at up to 132 kV on the distribution system in England and Wales and are treated as negative demand for the purposes of transmission charging.
They have ‘embedded benefits’ because they don’t pay transmission charges and they receive a benefit from suppliers because they help reduce their peak demand and transmission charges.
The report also stated if the changes are made they would reduce incentives for development of diesel generation and the associated environmental impacts.