There are a variety of microgeneration units available that provide for the small scale generation of heat or electricity for homes and businesses.
They include:
Microgeneration units can provide a significant amount of power.
For example a 1.4 kilowatt domestic wind turbine with an annual output of 2,000 kilowatt hours (kWh) could supply about 60 per cent of the annual powerconsumption for the average British home (3,300 kWhs).
Any power that isn't used could be exported to the electricity networks. It can be sold by the customer to a power supplier depending on the commercial arrangements that the supplier offers.
It is part of Ofgem's role to identify and remove any barriers preventing customers from entering into these arrangements with suppliers.
What is microgeneration?
Microgeneration units such as wind-turbines allow people to generate electricity to power televisions, computers and other electrical appliances in the home. Widespread use of microgeneration units could help reduce Co2 emissions by limiting the need for electricity from major power stations.
Another example of a microgeneration unitis a domestic combined heat and power boiler which uses waste heat to generate electricity.
How can microgeneration help reduce greenhouse gas emissions?
Widespread use of microgeneration could help the Government meet its target to reduce carbon dioxide emissions by 60 per cent by 2050, as large numbers of units installed in homes across the country could reduce the demand for electricity from big power stations.
Whenever electricity is transported long distances over wires some is lost as heat. However, because microgeneration is generated where it is used there are fewer losses. This also lowers emissions and could save costs by reducing the need for network
How can Ofgem help microgeneration to grow?
When people using microgeneration units export electricity to the networks, they need to establish relationships with the various parts of the electricity industry, including suppliers and network operators. Ofgem recognises that microgenerators are generally not electricity industry professionals so these relationships need to be made as simple as possible.
Ofgem's policy is to ensure that there are no significant barriers to the further development of microgeneration. Last year, Ofgem launched a consultation to consider if the current regulator arrangements present any barriers preventing the growth of microgeneration.
Issues that directly involve Ofgem include:
Market arrangements
We expect that customers should be able to discuss with the major energy suppliers how they might install and benefit from microgeneration in their homes. If customers encounter undue difficulties in securing offers, Ofgem will seek to address any market rules that lie behind this.
Network issues
Ofgem also needs to consider how the mass introduction of microgeneration technologies
affects the electricity networks Greater use of the units may require changes to the networks and how they are operated.
Technical issues
These mainly relate to meters which need to measure both