Licensing of GB electricity generation and storage
Licensing of GB electricity generation and storage

The following Energy guidance note provides comprehensive and up to date legal information covering:

  • Licensing of GB electricity generation and storage
  • The physical infrastructure of the GB electricity market
  • Treatment of electricity storage as a form of generation
  • The requirement for a generation licence
  • Exemption from the requirement for a generation licence
  • Procedure for individual exemption applications
  • Conditions of individual exemptions
  • Revocation of individual exemptions
  • Ofgem’s power to grant generation licences and make Application Regulations
  • Procedure for generation licence applications under the Application Regulations
  • more

The physical infrastructure of the GB electricity market

In broad terms, the physical infrastructure of the Great Britain (GB) electricity market can be divided up as follows:

  1. generators—these installations produce the electricity. They are connected to what is colloquially referred to as ‘the grid’, so that they can ‘export’ electricity for conveyance to the consumer’s premises. For the purposes of this Practice Note, it is important to note that electricity storage solutions are classed (for licensing purposes) as generators. For more information on generators generally, see Practice Notes: Great Britain electricity generation, distribution and supply licensing and exemptions regime and The Great Britain electricity market—an introduction. For more information on electricity storage, see: Energy storage—overview, and Practice Notes: Energy storage—planning issues, Energy storage—the evolving regulatory regime and renewable subsidy position

  2. interconnectors—interconnectors are high-voltage connections between the electricity systems of two countries; this allows electricity to be traded across borders. Interconnectors share a number of physical characteristics with offshore transmission lines but are licensed separately and are subject to different regulatory obligations. For more information, see Practice Notes: Licensing of Electricity Interconnectors, Great Britain electricity interconnectors and The Great Britain electricity market—an introduction

  3. transmission system—the ‘national electricity transmission system’ (NETS) is made up of several connected, high-voltage networks that are owned separately, but operated collectively by the ‘system operator’ (National