Maximising revenue from surplus on-site generation through virtual private wires

Under the current electricity supply licence requirements there are limited benefits to organisations that generate their own electricity and export the surplus generation to the grid. Working with experts in energy regulations and supply, JRP have developed a way to increase revenue from this surplus electricity

Posted on 25 October 2021.

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There are opportunities, if circumstances are right, for an organisation that generates on-site electricity and exports to the grid to add value to the exported electricity.  The Electricity Exemption Order 2001 permits supplies of electricity to be made exempt from the requirement to have a supply licence through the Private Wires Exemption.

A new approach

But there is now another option for exemption, one that uses public networks.  Working with experts in energy regulations and supply, JRP have developed a methodology for exporting exempt supplies over public networks.  This methodology has been proven and is operating successfully with many generating stations already taking substantial benefits.

Benefits

This solution allows for the on-site generator to export power to the grid and supply power via a licence exemption arrangement to third party organisations.  In addition.  The benefits are similar to Private Wire Licence savings, i.e.:

• A saving is made at the point of supply by not needing to pay the Renewable Obligation (RO), Contract for Differences (CfD), Feed in Tarrif (FiT) and Capacity Market charges (which in total have risen to currently around £50/MWh).

• Exempt supplies can be made to consumers anywhere in the country.

• Further savings may be available to renewable generators, without impacting accreditations.

The financial benefits could equate to £20/MWh to the electricity generator e.g. if a generator is exporting 1000MWh/year, then it could increase its income by £20,000/year.

If you would like to know if your organisation meets the requirements for a virtual private wire or for more information, please call us on 0800 6127 567 or email george.richards@jrpsolutions.com.