Local power production at the end consumer - legal, political and economical external conditions

The report deals with the external conditions for local power production, suggested as a production close to or at the end consumer. The political, legal and economical frame conditions for such production including rating are discussed. The report shall together with a technical report regarding appropriate technologies for such production (A5712), serve as a basis for case studies and monitors later in the project. Through the case studies it will be uncovered how the external conditions are functioning which will make foundations for recommendations concerning possible alterations in the conditions in order to make the local power production more profitable. In the discussion on the political and legal external conditions the system of today is studied. From the political area the general development is described and a short analysis is made of what to expect from case handling procedures, and some challenges are pointed out At present there is a simplified handling of cases of minor and smaller power plants. In order to obtain a more realistic construction of such plants the requirements of license handling may need sharpening. The tariffing of energy deliverance is studied. The regulations for tariffing and income regulation in the distribution network is mainly designed with the consumer and the central power production in mind. A study is made of how the regulations work, to what extent precessions and additional rules are needed and to what extent alterations in the regulations are needed in order to incorporate the local power production in a rational way. While a local power producer at best, will want a price for power which is sold at the power market of the size of 20 oere/kWh, the power will increase in value further down in the voltage level. At the 230 V level the power price will be of the size of 60 oere/kWh all expenses included and the network rent (during normal precipitation conditions). Therefore the production for own consumption will be met and little power be exported back to the network. Support and charges/tax systems are also described. In Norway there are few support systems compared to other countries with larger local or distributed power production. So far it is unclear how the market for ''green'' electricity in Europe will influence the small scale power production