Distributed generation

Distributed generation (DG) is also known as embedded or dispersed generation. DG is electricity generating plant that is connected to a distribution network rather than the transmission network.

There are many types and sizes of DG, including Combined Heat and Power (CHP) plants, wind farms, hydro electric power, or one of the new smaller generation technologies.

We work to ensure that the development of DG is not unfairly treated by the way networks are operated and regulated.

Over recent years we have witnessed a dramatic growth in the number of distributed generators seeking to connect to the distribution network. Accompanying this surge in volume of connections have been concerns that customers are encountering a number of difficulties in navigating their way through the connection process.

Ofgem hosted three DG Forum events in 2012 as an opportunity for DG customers and Distribution Network Operators (DNOs) to discuss issues and steps taken to improve arrangements. Presentations from the events are in the library of documents below.

The workplans that the DNOs subsequently produced are published on the individual DNO websites:

  1. Electricity North West
  2. Northern Powergrid
  3. Scottish Power Energy Networks
  4. Scottish and Southern Energy Power Distribution
  5. UK Power Networks
  6. Western Power Distribution

Publications and updates

  • Published: 31st Mar 2009
  • Open letters and correspondence
  • 1 Associated documents
Letter to all DNOs aimed at clarifying the intent of Ofgem’s 19 March 2009 open-letter with respect to the early connection of distributed generation to their distribution systems.

  • Published: 19th Mar 2009
  • Decisions
  • 1 Associated documents
Notice under Section 49A of the Electricity Act 1989 - notice of the reasons for the decision to modify the licenses

  • Published: 19th Mar 2009
  • Decisions
  • 1 Associated documents
Modification of the standard conditions of electricity supply licences granted under section 6(1)(d) of the Electricity Act 1989.

  • Published: 6th Feb 2009
  • Decisions
  • 2 Associated documents
This document sets out our final proposals and a statutory consultation notice to implement a new standard licence condition.

  • Published: 18th Dec 2007
  • Closed: 11th Mar 2008
  • Consultations and responses
  • 40 Associated documents
Ofgem and BERR's initial proposals for introducing greater flexibility to market, regulatory, and licensing arrangements for distributed low-carbon electricity.

  • Published: 2nd Nov 2006
  • Decisions
  • 2 Associated documents
Distributed energy - A call for evidence for the review of barriers and incentives to distributed electricity generation, including combined heat and power, a joint Government-Ofgem review.

  • Published: 30th Sep 2005
  • Consultations and responses
  • 21 Associated documents
Enduring transmission charging arrangements for distributed generation: A discussion document.

  • Published: 23rd Jun 2005
  • Other
  • 1 Associated documents
See the Technical Architecture - A first report The Way Ahead.

  • Published: 3rd May 2005
  • Reports and plans
  • 1 Associated documents

  • Published: 20th Apr 2005
  • Consultations and responses
  • 35 Associated documents
This consultation paper considers what regulatory changes may be necessary to reflect the connection of domestic-scale microgeneration to distribution networks.