The future of small-scale low carbon generation: a consultation on a Smart Export Guarantee (SEG)

Overview

To support the transition to a cleaner, smarter and more flexible energy system our intention in this document The future for small-scale low-carbon generation is to consider future arrangements that would facilitate:

• a route to market which supports small-scale low carbon generation of electricity
• market innovation - government has identified innovation as a central tenet of its Industrial Strategy
• lowering of costs for consumers - by supporting the development of the electricity system to provide consumers with affordable, low carbon electricity
• the promotion of the efficient use of electricity through price signals, which incentivise consumer behaviour that enables the efficient management of the grid for instance promoting export when the grid is experiencing high demand

Under the Smart Export Guarantee (SEG), government would legislate for suppliers to remunerate small-scale low-carbon generators for the electricity they export to the grid. The evidence gathered from this consultation will allow government to decide on whether, and how, to proceed with the SEG. This consultation is a result of a call for evidence.

An impact assessment is included as part of the consultation. The expected impacts are presented as a range to reflect the fact there is no central forecast.

Who should respond

We welcome any views on this document. We are seeking responses from:

• consumers
• trade associations
• small-scale low-carbon electric generators
• suppliers
• aggregators
• other interested parties

Please respond using the survey link below.