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Anaerobic Digestion of farm and food processing residues GoodPractice Guidelines Page51 The REC will determine the method and the point at which connection can be made to the distribution network, dependent on the export capacity of the AD plant, the relative parameters of the immediate distribution network and the pre-existing requirements of other electricity users in the vicinity. The scope for connection to the local network in rural areas with few industrial and commercial electricity users may be limited and it may be necessary for connection to be made at a higher voltage level on the primary distribution networks. The REC has statutory obligations under the Electricity Act 1989 in respect of the safety and quality of electricity supply to its customers and they need to ensure that generators connected to the distribution network do not impose risks that will affect their ability to fulfil this duty. However, connection of generators to the distribution network can in some cases be beneficial to the REC. In some cases it may • Reduce the level of transmission and distribution losses (nationally it is calculated that 7% of electricity generated is lost annually due to heating in cables and transformer iron losses) • Reduce the cost of purchase of electricity from the pool (particularly at times of peak demand when prices can be high) • Reduce triad peak capacity charges • Defray the need to reinforce the local network • Avoid Fossil Fuel Levy surcharges if generated from renewable energy resources outside NFFO • Be a valued source of reactive power to assist in voltage control. The cost of connection could vary considerably depending on where the AD plant is located within the REC’s distribution network. The cost of connection will in part reflect the distances involved; but the connection cost will tend to increase in steps (rather than smoothly) as the thresholds for requiring particular assets and voltage levels are crossed. If the developer has some flexibility as to where it can locate within a particular area, they should discuss with the REC the respective connection costs for different sizes of generator and the potential benefits that may accrue to the REC in order to optimise the costs to the developer and maximise the value of the energy generated. The REC is required by its licence obligation to offer terms for connection to the distribution network within three months of receipt of all the technical information in relation to the size, location and operation of the generating plant, but this will generally be qualified subject to planning permission approvals and wayleave consents. To provide the terms for connection, the REC will need to appraise the impact on several voltage levels of their distribution networks and ensure that safety and statutory obligations to all connected customers (including the generator to be connected) are not compromised. However, they will generally provide an initial estimate based upon the perceived least constrained supply route (usually by underground cable connection along the path of public highways) to give a ceiling price for the guidance of the developer, with an undertaking to provide a detailed quotation on examination of alternative routes involving securing landowner wayleave consent and planning permissions if overhead line construction and/or transformer substation construction would be required. The REC may charge a fee to appraise the connection implications but this would generally be set against the final connection charge if the project proceeds. The connection point would usually be at the curtilage of the generation plant and if the connection charges quoted are accepted by the developer, then the REC would take on the responsibility to complete the statutory procedures required for excavation on public highways and to secure any wayleave consents and planning permissions required. All the plant and equipment, cables etc would remain in the ownership of the REC and they would accept all future liability for maintenance and replacement if subsequently damaged. The benefit to the REC would be that the additional network installed could be utilised for future connection of other customers and/or generators. All the installation work required would generally be carried out by staff or contractors employed by the REC, although the developer can opt to use an approved contractor to carry out some of this work which is ‘contestable’ if they feel they can secure a more competitive quotation (the elements that are ‘contestable’ generally relate to the supply and installation of the new equipment, providing it meets the technical specifications set by the REC); the final connections, energisation and moving of existing connected assets, however, for safety reasons are ‘non- contestable’ and have to be carried out by the REC. In some cases, where the developer is able to secure his own wayleave consents, he can opt to nominate the point of connection to the distribution at the point where it is coupled into the existing network. The developer may derive some benefit from cost reductions in equipment specification (particularly if capacity of the connection determined with standardised plan specifications by the REC cannot be fully utilised by increasing generator capacity) but the developer will then be fully responsible for the ongoing maintenance and replacement costs and will need to include the works involved in the application for planning permission for the AD plant. Good practice would suggest that the local planning authority should be consulted on the route of the line, as they have an opportunity to make representations or requests for amendments, or indicate that they have no objection. Developers may also feel it would be appropriate to consult local residents over the potential route of the line at this stage. County councils and district councils (or unitary authorities) are consultees on the application for consent, and objection by either council means that there is likely to be a public enquiry.PDF Image | Anaerobic Digestion Of farm and food Processing residues The development of a sustainable industry
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