Embedded benefits is the term given to the exemption from various grid use of system charges for generators and storage connected to the distribution network, as opposed to those paid by transmission-connected parties. The Embedded Benefit is not a ‘benefit’, but a reflection that network charging is based on net flows. As distributed generators and storage do not use the transmission network, they should not pay for its use. More background information on this issue is contained in the enclosures.
Correspondence from Association for Decentralised Energy, Renewable UK, Renewable Energy Association and Solar Trade Association regarding the embedded benefits as notified in the Government’s March 2016 Capacity Market consultation.