Charging regime change ‘could take £15/MWh from renewable generators’


Charging regime change being undertaken by Ofgem could reduce renewables generators’ revenues by up to £15/MWh according to Smartest Energy.

Most of the hit comes from cuts to embedded benefits and the BSUoS benefit flipping to a charge. In a new report, the company outlines some of the approaches renewables generators could consider to partially offset the loss of income.

These include flexible PPAs, providing balancing services and/or capacity services or co-locating batteries alongside generation assets.

The report also urges generators to ensure they are being properly paid for the Renewable Energy Guarantees of Origin (REGOs) by suppliers.

According to a survey of 49 generators conducted by Smartest Energy, many are not receiving the full value of REGOs, where prices have increased recently as big players hoover up available certificates in order to claim they are supplying clean energy (details here).

The report also provides an outlook for different forms of generation. It is available as a free download here.

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Free 2018 demand-side response report

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