Grid connection charges and Significant Code Review: the risks and opportunities
The Significant Code Review (SCR), which comes into force on 1st April 2023, is on the surface reducing some grid connection charges for some generators and removing reinforcement charges for demand.
Whether a developer, investor or owner of an existing or proposed energy scheme, or a commercial, industrial, housing or datacentre developer or investor, the changes will bring significant implications for schemes. Here we explain more.
Article by Pete Aston – acknowledged expert in networks
Pete joined Roadnight Taylor from Western Power Distribution, the UK’s largest DNO, where he was Primary System Design Manager. He led a team of sixty responsible for all connections to the extra high voltage network, as well as leading WPD’s interaction with National Grid (NGET and NGESO) at the transmission/distribution boundary.
12th December, 2022
The changes are not as straightforward as they may seem and bring a number of hidden risks. Here, we have highlighted the main considerations – what to look for and how our team could help identify these risks and maximise the opportunities for your project.
We will be covering these topics for different audiences in a series of webinars in December and January. Sign up using the links at the bottom of this page for the webinar most relevant to you.
| Critical considerations | |
|---|---|
| Timing of application | Under SCR, for some applications timing will be critical to success. Some may be more beneficial made before 1st April 2023, and some after – both in relation to the cost of works and congestion in the application process. We can help you come out on top, by advising on the best moment for your submission. |
| Connection size | Under SCR, the best size for the connection will be determined by a number of factors, including risk of triggering reinforcement, the high-cost cap and the timing of the works. We can advise on the optimum size for the connection so you don’t take on £millions in avoidable costs. |
| Flexible access | Under SCR, £Millions may be saved by identifying and proposing the right flexible connection arrangement – interim or enduring – for the right project. While DNOs may be able to offer permanent or temporary flexible access arrangements, these will not represent the best strategy for all projects. By advising on the availability and impact of such flexible connections, we can ensure you capture all these opportunities. |
| Cumulative impact | Under SCR, cumulative impact on networks will make losers of many developers. Multiple applications – by the same or by multiple developers – may trigger costly works and have potentially terminal impacts. Our advice can help you avoid these bear traps. |
| Connection voltage | More so under SCR than before, DNOs could benefit from gaming the point of connection voltage, using the smokescreen of the Least Cost Scheme . We could save you £millions by forcing the DNO to provide the genuine least cost connection voltage whenever we identify they are incorrectly applying their design methodologies. |
| Existing connections | By eliminating curtailment, under SCR, your income from an existing scheme can massively increase at virtually no cost. Existing flexible access arrangements for generators (for example ANM or timed connections) may be able to be removed from 1st April 2023, but this could come with hidden costs and risks. We can advise – on a site-by-site basis – on the benefits and risks of such a move, and how to avoid missing out or being played. |
We will be covering these topics for different audiences in a series of webinars in December and January. Sign up below for the webinar most relevant to you:
GAME OR BE GAMED? Massive opportunities and risks under the new grid connection charging regime game (SCR)
⚡ Energy scheme developers – 7 December. Registration now closed, but submit your details to receive a recording here.
⚡ Commercial and industrial developers and investors – 14 December. Registration now closed, but submit your details to receive a recording here.
⚡ Datacentre developers and investors – 11 January. Registration now closed, but submit your details to receive a recording here.
⚡ Investors in shovel ready developments and owners of existing generation and storage schemes – 18 January. Registration now closed, but submit your details to receive a recording here.
Contact us
For help in understanding more about how the new grid connection charges could impact your project, call us on 01993 830571 or send us a message via our contact form.
