Ofgem slashes embedded generation benefits

A key funding source for smaller renewable plants has been drastically reduced as Ofgem seeks to curb diesel

The cuts will be phased in over three years from 2018 - 2021. Photograph: Roger Ashford/123RFA key source of revenue for smaller renewable generators has been slashed by around 95%.

Embedded benefits for generators less than 100 megawatts capacity connecting directly to local distribution networks will be drastically reduced from £47 per kilowatt, to somewhere between £3/kW and £7/kW, Ofgem announced on 20 June.

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