UK ETS Consultation: Electricity Generators

Swan Energy has produced a guidance document to summarise the Developing the UK Emissions Trading Scheme – UK ETS consultation document under  a number of headlines – one being for Electricity Generators. Here we highlight the key points.

 

In summary:

 

1 – The Authority proposes to amend the electricity generator definition to consider electricity exports in the baseline period, rather than exports since 2005.

The Authority wishes to hear your thoughts on the following. This section relates to Questions 22 – 23 in the response survey.

  • Do you agree with the proposal?
  • Should minimal or one-off electricity exports be excluded from the electricity generator classification?

 

2 – The Authority proposes to exclude installations that have produced electricity for sale to third parties through a CHPQA certified plant, as part of an operator’s industrial activity.

The Authority wishes to hear your thoughts on the following. This section relates to Questions 24 – 28 in the response survey.

  • Do you agree with the proposal, or should the current rules be maintained?
  • Should a cap be set on the maximum amount of electricity that can be exported as a condition to this exclusion?
  • Will this proposal support long-term investment in decarbonation solutions?
  • How would an operator prove that their CHPQA certified plant operates as part of their industrial process, and does not operate independently for the sole purpose of generating electricity for sale?

 

3 – The Authority proposes that electricity generators who have not exported measurable heat produced by means of high-efficiency cogeneration in the “relevant period” but start to do so may be eligible for free allocation.

The Authority wishes to hear your thoughts on the following. This section relates to Questions 174 – 175 in the response survey.

  • Do you agree with the current legislation?
  • Do you agree with the proposed legislation?
  • Over which period should the determination of whether the measurable heat is produced by means of high-efficiency cogeneration be assessed?

 

4 – The Authority proposes that electricity generators who are new to the UK ETS scheme and produce measurable heat by means of co-efficiency generation, may not apply for a free allocation of allowances from the new entrant reserve until they can provide a full calendar year of activity level data.

The Authority wishes to hear your thoughts on the following. This section relates to Question 176 in the response survey.

  • Do you agree with the proposal?

 

More detailed that is relevant to Electricity Generators is included in our summary document. If anyone would like to receive the full guide, please call us on 01484 843867 or email info@swanenergy.co.uk and we’ll be in touch.

Swan Energy has been involved with the UK ETS (formerly EU ETS) since its conception and delivers 100% compliance for our clients. Click here to find out more about our service.

Rebecca Scarratt

Carbon Consultant

Rebecca Scarratt

Carbon Consultant

Rebecca has joined the Swan Energy team in 2021. She graduated from the University of Hull with a BSc in Geology with Physical Geography in 2020 and went on to do a MSc in Renewable Energy. Her Masters’ thesis focused on how future climate change may impact the Humber region’s wind energy sector and how adaptation strategies could be used to reduce vulnerability.

In her role at Swan Energy, Rebecca supports the consultancy work the team does with clients across the UK.