The Department of Trade and Industry plans to cut some of the red tape facing small renewable generators in the new electricity market. Under proposals unveiled by energy minister Helen Liddell, generators who feed up to 100 MW into the grid are to be exempted from the need for a generation licence. This will reduce their administrative burden, claims Liddell. The change will also allow small generators to aggregate their output with suppliers (retailers) when the new electricity trading arrangements (NETA) take effect. "This will be of particular help to those plants which do not have predictable or flexible output, including renewables and CHP operators," she says. Liddell also proposes changes to the rules governing suppliers who generate electricity themselves. "Relaxation to suppliers' exemptions will also allow small generators to supply more power locally." She adds that together, the measures will help to make power from small environmentally friendlier generators more competitive.
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