Sustainability First have produced an interesting discussion paper proposing a low carbon incentive for inclusion in the next round of regulation for networks (RIIO2). The paper, written by regulatory experts Maxine Frerk (ex-Ofgem), Judith Ward (who is – full disclosure – on the advisory group of IGov2) and Sharon Darcy, argues for the introduction of a specific low carbon incentive that would work in three areas: Low carbon energy sources: incentivising network companies to facilitate the connection of low carbon energy sources (for example distributed renewable generation in electricity, or biogas in the gas network) and increasing the level of output from those sources. Low carbon network operation: incentivising network companies to reduce their own carbon footprint (and that of contractors), including via losses and leakage. De-carbonising demand: incentivising companies to facilitate reductions in demand for energy (for example via energy efficiency measures), as well as the use of lower carbon energy sources in other sector (e.g. heat and transport).
IGov 23rd May 2018 read more »