Contents

Contents

A: Background-The GB Power Sector Page 3

B: The Role of Distributed Generation Page 4

C. An Overview of Getting Connected Page 5

D. The Connection Application Page 7

E. Costs and Charges Page 8

F. Selling Electricity– Smart Export Guarantee (SEG) Page 8

Where to Find More Information Page 10

Glossary Page 11

Acronym Guide
DNO Distribution Network Operator HH Half Hourly (meter)

ENA Energy Networks Association ICP Independent Connections Provider

EREC Engineering Recommendation IDNO Independent Distribution Network

Operator
FITs Feed in Tariffs
NHH Non-Half Hourly (meter)
SEGs Smart Export Guarantee

If you are planning to use storage in conjunction with PV (or other generation technology) to
offset consumption in your home, you may be eligible for a G99 Energy Storage Fast Track
procedure – refer to the full G98 Single Premises guide for more information.

Note that this document covers the process for connecting generation to the distribution
networks in Great Britain. Northern Ireland has different connection arrangements, for example
different versions of Engineering Recommendations G98 and G99 are in use. For more
information, refer to the Northern Ireland Electricity website: www.nie.co.uk

Note: Many of the terms used in this guide are defined in the Glossary.
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 Introduction
Who is this Guide for? What is the aim of the Guide?
This Guide is intended to help you, as a This is a ‘summary’ form of a much more
developer or prospective owner of any form detailed guide, available on the Energy
of distributed generation, to connect your Networks Association (ENA) website. The
generating unit to one of GB’s electricity purpose of this summary guide is to act as a
distribution networks. It may also be useful simplified ‘route map’ of the processes for
for installers or manufacturers of distributed getting a generation project connected to the
generation equipment. distribution network.
DNOs treat storage as both demand and You should be aware that the process of
generation, and need to be aware of storage getting connected described in this guide is
because of the potential impact on their only part of the process of developing your
networks. Note that the term ‘DNO’ as used in distributed generation. For example, this
this guide generally refers to both DNO and guide does not cover:
IDNO companies. • Designing, installing and operating the
This “summary” guide is written for the generation units themselves;
developers of distributed generation or • Planning and financing the project; and
storage projects which are covered by • Resolving local planning issues.
Engineering Recommendation (EREC) G98. The format of the Guide
This covers Project that are: This Guide has been written and formatted
• Projects with a capacity of 16A per with you, the reader, in mind. We have tried
phase or less (if there are multiple to make this Guide as clear and easy to read
generation or storage units connected at as we can, bearing in mind that some of the
the same premises, then 16A is the issues discussed are technical and complex. In
maximum combined capacity per particular:
phase); and • Any terms which may be unfamiliar are
• Projects connected at low voltage (230V explained in the glossary.
single phase, or 400V three phase); and • Text is emboldened for emphasis.
• Technology which is type tested under • Where necessary the Guide
the requirements of EREC G98. distinguishes between the arrangements
This guide is best suited for those developers that apply in Scotland and those which
who are connecting Distributed Generation or apply in England and Wales. This is
storage in a single property. If your are indicated with a Scottish flag.
developing Distributed Generation or storage • There is a pointer on where to find more
in more than one premises within a ‘close information at the end of the guide.
geographic region’, then there are alternative Because the topics covered here are technical
Guides that are more suited to your project: and complex, it is necessary to refer to such
(‘Distributed Generation Connection Guide—a concepts as voltage and power. Where
guide for connecting generation to the possible, terms that may be unfamiliar have
distribution network in multiple premises that been described.
falls under G98’).
Governance of the Guide
If your project is outside of the scope of EREC This Guide is a Distribution Code Review Panel
G98, there are alternative guides you can (DCRP) document. The DCRP will update the
read. Guide periodically.

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 A: Background-The GB Power Sector
Traditional power system Changing power system
In the traditional power system, electricity An increasing number of small electricity
generally flows in one direction; from large generating units are being developed, often
power stations (mostly coal, gas and nuclear), connected to distribution networks. This is
into the transmission system, through to known as Distributed Generation, and can
distribution systems and delivered to loads bring advantages such as low carbon energy
(such as homes, businesses and factories). sources and reduced transmission and
distribution system costs.
Generation Transmission
Network
However, it can result in the electricity flows
in the network being less predictable and
dynamic. As this is not what the network was
Load
Direction of designed to deal with, this can cause issues
Distribution
electricity flow around network control and protection.
Network

Important terms
Transmission Network / Transmission System: Transports electricity over long distances across the
country. Electricity is transported at a high voltage to reduce losses. Transmission voltage is 275kV or
400kV. In Scotland, 132kV is also used.

Distribution Network / Distribution System: Transports electricity from the Transmission System (and
from Distributed Generation) to loads like homes and businesses. The voltage is reduced to the correct
supply voltage for the loads. Distribution voltage is 132kV and lower in England and Wales, and less than
132kV in Scotland. Most domestic customers are supplied at 230V.

Key organisations
National Grid Electricity Transmission (NGET): The Transmission Owner for England and Wales.
The Transmission Owner for northern Scotland is Scottish Hydro Electric Transmission Plc, and
for southern Scotland, SP Transmission Plc.
National Grid Electricity System Operator (NGESO): The System Operator of the transmission
system in England, Wales & Scotland.

Distribution Network Operator (DNO): Owns and maintains public electricity distribution
networks. There are six DNOs in Great Britain.
Note: You may be connected to an Independent DNO’s (IDNO) network or a private network
rather than the DNO’s network. In this Guide when we refer to DNOs, this also applies to IDNOs.

Suppliers: Buy electricity in bulk from generators, and then sell to consumers. They are
responsible for providing bills and customer services, and arranging metering and meter reading.
Electricity supply is a competitive market so you can choose and change your electricity supplier.

Elexon: The Balancing Settlement Code company for Great Britain.

Ofgem (Office of Gas and Electricity Markets): The regulator of the power system in Great
Britain.
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 B: The Role of Distributed Generation
What is driving Distributed Generation?

Environmental concerns—The increased concern over the damage that Greenhouse Gasses
may be doing to our environment. Distributed Generation technologies are often renewable or
low carbon means of generating electricity.

Government policy—The Department for Business, Energy and Industrial Strategy (BEIS) is
developing policy to ensure that in the UK energy supplies are secure, low carbon, and fuelled
from a diverse mix of energy supplies. This includes supporting Distributed Generation.

Security of Supply—The need for secure and reliable sources of energy, both now and into the
future.

Technological innovation
Technology is developing all the time, and there are more generating technologies and network
techniques available now than there were when the national grid was being developed.
To incentivise innovation in energy networks, Ofgem runs two mechanisms: the Network
Innovation Allowance (NIA, an allowance awarded to each network company) and Network
Innovation Competitions (NIC, where network companies bid competitively to fund larger
projects).
For more information, and details about individual projects, refer to the Smarter Networks
Portal, hosted by the Energy Networks Association: www.smarternetworks.org/

Benefits of Distributed Generation Impacts of Distributed Generation

The benefits that increased Distributed Generation has As well as introducing benefits, the
on the UK and its electricity system include: increased penetration of Distributed
• Increased energy mix —often lower carbon; and Generation in UK distribution
• If Distributed Generation is connected close to networks also poses challenges,
the point of use, including:
− Reduced need for network infrastructure • Thermal ratings being
− Reduction in transmission and distribution exceeded;
losses. • System voltage rising beyond
the acceptable limits;
The commercial benefits to having Distributed • Reverse power flows, i.e.
Generation, include: power flows in the opposite
• Lower electricity bills—through using your own direction to which the system
energy onsite instead of importing from the grid; has been designed;
• Selling energy that you generate, and gaining • Fault level rising above the
from incentives like FITs; and rating of equipment; and
• Participation in Ancillary Services—Larger units • Power quality being affected,
(more than around 3MW) may be able to e.g. flicker, voltage unbalance
participate. or harmonics.

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 C: An Overview of Getting Connected
In most cases, the installation of small generating
1. FIND AN INSTALLER
units into a single premises will have very little
affect on the network. Therefore the connection
process is relatively simple, and can be 2. INSTALLATION AND COMMISSIONING
summarised as “fit and inform”.
3. INFORM THE DNO
Opposite is a summary of the major tasks of the
connection process. These are explained below.
4. ONGOING RESPONSIBILITIES

1. Find an installer
The first task is to find a competent installer. Certified generation products and installers can be
found on the following website: www.microgenerationcertification.org

2. Installation and Commissioning

The installation and commissioning requirements are covered in Section 8 of EREC G98. Your
installer should be aware of these requirements. During the commissioning, your installer will
check that your equipment is working as it should.

3. Inform the DNO

Your installer must notify the DNO within 28 days of commissioning the generating unit, and
provide them with information on the installation. This information is captured on an
“installation commissioning confirmation” form, which is given in the “Installation Document”,
which is Form B in Appendix 3 of EREC G98. The form should include both generation and
storage details as applicable. DNOs may have their own installation commissioning confirmation
forms on their websites.

4. Ongoing Responsibilities
Ongoing commitments are outside of the scope of this Guide, but you should be aware of them.
They include:
• Maintenance of the equipment
• Informing your DNO if you remove or replace your generating unit
• Notify your DNO of any operational incidents that affect your compliance with EREC G98
• Periodic testing specified by the DNO

EREC G98 was introduced in May 2018. It is based on the archived EREC G83, which was revised
to take account of a European Network Code called Requirement for Generators. Micro-
generators connecting to the distribution network must connect under EREC G98.

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 C: An Overview of Getting Connected
Health and Safety Considerations
Some of the safety requirements for Distributed Generation connections are set out in EREC
G98, which reflects Regulations and Acts such as the Electricity Safety, Quality and Continuity
Regulations (ESQCR) 2002, and also the relevant British Standards.

Dealing with Disputes

If you have a dispute during the connection process which you cannot resolve with the party
directly, you can contact the Energy Ombudsman: www.ombudsman-services.org/energy
As a last resort it can then be referred to Ofgem.

Vehicle to Grid
Vehicle to Grid (V2G) is in its infancy and trials are being undertaken to further understand and
demonstrate its benefits. The electric vehicle will be considered as both a demand and a
generator by DNOs. The generator application will depend on the power export capacity of the
V2G and what generation or storage devices are already connected at the designated charging
point. It is likely that V2G will be > 16 A/phase and therefore G98 is not applicable and G99
should be used.

The current situation is that installers follow one of two generation application processes and
sets of forms, which are as follows below:
• Where the total of all generation, fixed storage and the power export capacity of the V2G
is < 50 kW 3-phase or 17 kW single-phase, the G99 Simplified Application Form A1-1 can
be used.
• Where the total of all generation, fixed storage and the power export capacity of the V2G
is > 50 kW 3-phase, the connection application should be made using the Standard
Application Form.

In addition, your installer should complete forms associated with a standard Electric Vehicle
(EV) charge point, such as the ENA EV installation form (“Application Form for the Installation of
Low Carbon Technologies”). The DNO may request further information, such as a photograph of
your electric meter and consumer unit.

The ENA Low Carbon Technology Working Group has been looking at ways to simplify the
connection application process and associated forms for V2G applications, including considering
a single process that combines the aspects of EV as demand and generation. The ENA is
currently reviewing the options to make this happen, with the intention to implement the
streamlined changes for V2G connections towards the end of 2020.

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 D: The Connection Notification
You do not need to talk to your DNO before your generation equipment is up and running. Your
installer needs to inform the DNO and provide a number of pieces of information within 28 days
of the date of commissioning. This information is defined in the Installation Document, which is
Form B in Appendix 3 of EREC G98.

The information required includes:

• details about the site where you are connecting your generating unit, including metering
information;

• contact details for the owner of the generating unit;

• technical information about the generating unit itself, including the generating capacity,
type test reference and primary energy source;

• details of the installer of the generating unit, including the party’s accreditation and
qualifications;

• supporting information, e.g. circuit diagrams; and

• a signed declaration as to the compliance of the generating unit with the requirements of
EREC G98.

If you appoint a competent installer, they should know about the requirements set out in EREC
G98, and make sure that your installation meets them. You should check that your installer is
aware of all these requirements.

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 E: Costs and Charges
Generation Distribution Use of System (UoS) charges
UoS charges cover the operation and maintenance of the distribution network. They are levied
by the DNO on the supplier, so you will not be charged these directly. However, they may
appear as an item on your bill. DNOs are obliged to publish documents about their Use of
System charges. You can find these on DNOs’ websites.
UoS charges vary depending on:
• the voltage level you are connected to (if you are compliant with EREC G98, you are
connecting to low voltage); and
• the type of meter you have—it is likely that you will have a Non-Half Hourly (NHH) meter,
as only sites with a generation capacity greater than a certain threshold (currently 30kW)
are required to have a Half Hourly (HH) Meter.

With the Common Distribution Charging Methodology charges for LV generation customers with
NHH meters are in the form of a single unit rate (p/kWh). Distribution Use of System charges
are subject to review by Ofgem and significant changes are underway. Refer to Ofgem’s website
for more information.

F: Selling Electricity-SEG

Important Point: The SEG scheme for generators opened on the 1st January 2020. The SEG
scheme replaces the Feed-in Tariff (FIT) scheme that closed on the 31st March 2019 but works
differently to FITs.
There are two sources of financial benefit from FIT payments which are:
• Generation tariff: A fixed unit for each unit of electricity generated.
• Export tariff: A guaranteed price for each unit of electricity exported to the grid.
The SEG scheme obliges electricity suppliers to offer an export tariff rate to an eligible
generating unit.
Generators cannot receive SEG payments as well as FIT payments for exported electricity.
However, if the generator continues to receive FIT generation payments and opts out of
receiving FIT export payments then they are eligible to receive SEG export tariff payments.

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 F: Selling Electricity-SEG
Smart Export Guarantees (SEGs)
SEGs are a financial incentive to support distributed renewable energy generation up to 5 MW.
SEGs are available for the following generation technologies:

• Anaerobic digestion (AD) • Solar PV • Hydro

• CHP and Micro-CHP* • Wind
*Up to 30,000 domestic Combined Heat and Power (CHP) units are supported through FITs under a Micro CHP pilot
scheme. These units must be have a capacity of no greater than 2 kW each.

There are financial benefits for Generation projects that use the old FIT and new SEG scheme.

Generation and Export tariff (FITs): SEG Export Tariff

Installations which receive payments The SEG scheme is an export tariff, which is a
under the FIT scheme will continue to guaranteed price for each unit of electricity
receive the same generation and export exported to the grid. It is an obligation for
tariffs that were current at the time of licensed energy suppliers to offer eligible
installation The last export tariff under generation projects an export tariff rate. The
the FIT scheme, before the scheme electricity suppliers decide the SEG export
closed on the 31st March 2019, was tariff details i.e. the rate and the length of the
fixed at 5.24p/kWh. This differs from the contract. However, although wholesale
export tariff rate offered through the electricity prices can fall below zero due to
SEG scheme, which depends on the changes in demand, electricity suppliers must
electricity supplier you choose to con- always offer a tariff which is greater than zero.
tract with.

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 Where to Find More Information

Some Useful Organisations:

Energy Networks Association —the industry body for UK energy transmission and distribution
licence holders and operators: www.energynetworks.org
Ofgem is a good source of up to date information about Feed in Tariffs —www.ofgem.gov.uk/
environmental-programmes
Note that your electricity supplier is your point of contact for the FIT scheme.
National Grid Electricity Transmission (NGET)—The Transmission System Owner in England and
Wales: www.nationalgrid.com/uk/Electricity/
Has a lot of useful information available, including the National Grid Electricity Transmission Ten
Year Statement and more information about connection and agreements
National Grid Electricity System Operator (NGESO) - The System Operator in England, Wales
and Scotland: https://www.nationalgrideso.com/

Department for Business, Energy and Industrial Strategy (BEIS) - For the most up to date
information on relevant Government policy https://www.gov.uk/government/organisations/
department-for-business-energy-and-industrial-strategy
Energy Saving Trust—www.energysavingtrust.org.uk/Generate-your-own-energy

Some Useful References:

Engineering Recommendation G98 and G99— available free of charge on the DCode website:
www.dcode.org.uk/
The Grid Code of Great Britain — available free of charge on NGESO’s website: Grid code
The Distribution Code of Great Britain—available free of charge on the Distribution Code
website: www.dcode.org.uk/
The European Network Code, Requirements for Generators—available on the EUR-Lex website
Metering Codes of Practice: www.elexon.co.uk/bsc-related-documents/related-documents/
codes-of-practice/
Certified generation products and installers: www.microgenerationcertification.org

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 Glossary of Terms
Balancing and Settlement Code company: Governs the operation of the balancing mechanism. They
charge generators and suppliers for the cost to the System Operator to balance the market . The Balancing
and Settlement Code company for Great Britain is Elexon.

Close Geographic Region: Typically, an area which is fed by the same part of the distribution network,
from a single feeder or distribution transformer. A general rule of thumb is that if your installations are
within 500 meters of each other, then they are likely to be within a close geographic region.

Commissioning: A set of visual inspections and tests performed on equipment after installation,
renovation or maintenance, and before it goes into full operation. Commissioning aims to ensure the
equipment is working safely and as it should.

Distribution Code: The code required to be prepared by a DNO pursuant to condition 21 (Distribution
Code) of a Distribution Licence and approved by the Authority (The Gas and Electricity Markets Authority -
Ofgem) as revised from time to time with the approval of, or by the direction of, the Authority.

Distributed Generation: A generation project is classed as Distributed Generation if it operates while

electrically connected to the distribution network. Also known as ‘Embedded Generation’.

Distribution Network (System): Transports electricity from the Transmission System to loads like homes
and businesses. The voltage is reduced to the correct supply voltage for the loads. The voltage is 132kV
and lower. Most customers are supplied at 230V.

Distribution Network Operator (DNO): Owns and maintains public electricity distribution networks. They
must hold a Distribution Network Operator Licence. These are regulated monopoly businesses which
recover their costs by levying use of system charges on electricity traded using their network. There are
six DNOs in Great Britain.

Engineering Recommendation (EREC) G98: Requirements for the connection of Fully Type Tested Micro-
generators (up to and including 16 A per phase) in parallel with public Low Voltage Distribution Networks
on or after 27 April 2019.

Engineering Recommendation (EREC) G99: Requirements for the connection of generation equipment in
parallel with public distribution networks on or after 27 April 2019.

Engineering Recommendation (EREC) G59: Recommendations for the Connection of Generating Plant to
the Distribution Systems of Licensed Distribution Network Operators. This is not applicable to generation
connecting after the 27th April 2019.

Smart Export Guarantees (SEGs): A financial incentive to support distributed and small-scale renewable
energy generation, up to 5 MW.

Generating Unit: Any apparatus which produces electricity.

Generator: A person who generates electricity under licence or exemption under the Electricity Act 1989.

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 Glossary of Terms
Independent Distribution Network Operator (IDNO): A holder of a distribution licence, an IDNO designs,
builds, owns and operates a distribution network, which is an extension to existing DNO network. They
typically build network for new developments such as business parks, retail and residential areas and
leisure facilities. Your local DNO will be able to inform you if you are connected to an IDNO’s network or a
private network rather than the DNO’s network.

Office of Gas and Electricity Markets (Ofgem): The regulator of the electricity system. They are
responsible for regulating prices and performance in the monopoly elements of the electricity supply
industry, resolving disputes between different parties when necessary, and granting the various licences in
the power sector, including generation licences.

Micro-generator: A source of electrical energy and all associated interface equipment able to be
connected to an electric circuit in a Low Voltage electrical installation and designed to operate in parallel
with a public Low Voltage Distribution Network with nominal currents up to and including 16 A per phase.
Suppliers: Buy electricity in bulk from generators, and then sell to consumers. They are responsible for
providing bills and customer services, and arranging metering and meter reading.

System Operator: The operator of the transmission networks, the System Operator balances supply with
demand on a minute by minute basis.

Transmission Network (System): Transports electricity over long distances across the country. Electricity
is transported at a high voltage to reduce losses. The voltage is 275kV or 400kV. In Scotland, 132kV is also
used.

Transmission Owner (TO): Owns and maintains the high voltage transmission system.
The Transmission Owners are as follows:
• National Grid Electricity Transmission (NGET) in England and Wales
• Scottish Power in southern Scotland (SP Transmission Plc)
• Scottish and Southern Energy (SSE) in northern Scotland (Scottish Hydro Electric Transmission
Plc)

Type tested equipment: Equipment that has been tested to ensure that it meets the requirements of
EREC G98 or G99. Using type tested equipment simplifies the connection and commissioning process.

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