Electricity Generators And Embedded Benefits - Cause For Concern?

Embedded benefits are savings or payments available to generating stations that are directly connected to distribution networks (commonly referred to as embedded generation or distributed generation). They come in a variety of forms, and, in part, are intended to reflect the fact that the generation is located closer to the demand, thereby reducing the required levels of network investment (transmission and distribution) and electrical line losses.

Embedded generators typically realise, and share the financial value of, embedded benefits under the power purchase agreement under which they sell the electrical output from their generating station. Embedded benefits can therefore be a valuable income stream for those generators.