Code change to benefit renewable generators

Ofgem has agreed a code change to remove “unnecessary financial burdens and barriers to entry” for new generation projects.

The modification - CMP447 - was proposed by the National Energy System Operator to address an issue in the Connection and Use of System Code which meant generators were required to post financial securities for strategic transmission works that had already received regulatory approval and would proceed irrespective of their connection

Ofgem said the change is expected to reduce perceived barriers to entry which would create a level playing field for generators regardless of size and financial circumstances.

This would ultimately support investment of renewable generation projects onto the transmission network from a broader range of market participants.

The proposal was treated as urgent due to its significant commercial impact and the need for certainty in charges for developers.