A study carried out by the Energy Saving Trust on behalf of the DTI (Potential for Microgeneration: Study and Analysis) assessed the implications of substantial microgeneration on the UK electricity system. This built on an earlier study carried out for the DTI by Mott MacDonald (System Integration of Additional Microgeneration). The EST report suggests that, for relatively high export levels, the costs could be anywhere between £122 million and £240 million.
The Energy Review Report announced that the DTI and Ofgem will lead a review of the incentives and barriers to distributed electricity generation including CHP, which will report in the first half of 2007. Among other issues, this work will look at economic and other incentives on distributed network operators to connect new generators and to upgrade distribution networks in order to accommodate increasing amounts of distributed generation (including microgeneration).
Government support towards the installation of microgeneration technologies began in 2000. Details of spend to date are as follows:
Spend (£ million) 2000-01 0.2 2001-02 0.5 2002-03 4.2 2003-04 6.7 2004-05 11. 3 2005-06 13.5 2006-07 5.7
Spend (£ million)
It is anticipated that the remaining £12.9 million from the legacy scheme budgets will be drawn down by March 2007.