Ofgem rejects transmission charges hampering renewables development
Posted on: September 18th, 2008 by Jason Drew
The CEO of Ofgem has dismissed claims that by charging for electricity transmission, it is hampering the growth of renewable energy projects in Scotland. The denial has come as a response to a statement of Jim Mather, the energy minister of Scottish government. Jim Mather has called imposition of electricity transmission charges was an unfair practice.
The present system is location based. For example, a power station located in Scotland pays roughly 25 million pounds more per year towards transmission of electricity than other power station located in Yorkshire. This, according to Jim Mather, is an unfair charge for renewable energy plants as they are located as per suitability to generate green energy. Unlike conventional energy projects, green energy plants are located away from the demand areas.
But Ofgem’s CEO, Alistair Buchanan, disagrees. He said that not a single project is known to be held up for the reasons of transmission charges. He believes that planning of renewable energy system and the queue for connecting with the national grid is proving to be a much bigger hurdle to their development.
Jim Mather said that a written communication has been forwarded to National Grid and Ofgem asking them to incorporate a flat rate system for transmission charges. The system has to be fair to renewable energy projects to enable their growth, development and investment.
Jason Ormitson, the CEO of Scottish Renewables stated that the proposal will test the support of National Grid and Ofgem towards green energy.
Please visit www.ofgem.gov.co.uk for more
