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2009

The Role of Gas Distribution Networks in Power Generation and CHP Phase 2

  • Status: Live
  • Reference: NIA_CAD0167
  • Lead Network: Cadent
  • Start Date: 01 October 2026
  • End Date: 01 July 2027
  • Budget: External project delivery cost: £325,000 plus VAT. External cost allocation: Cadent £220,000; SGN £55,000; Northern Gas Networks £50,000. Internal costs for Cadent is £73,333, NGN is £12,500 and SGN is £18,150.
  • Funding Mechanism: Network Innovation Allowance
  • Collaborating Networks: Cadent, Northern Gas Networks, SGN, Wales & West Utilities
  • Project Partners: Partners: Progressive Energy Limited, SGN, Northern Gas Networks and Wales & West Utilities External delivery funding: £325,000, allocated as Cadent £220,000, SGN £55,000 and Northern Gas Networks £50,000.

Abstract

Phase 2 builds on Phase 1 by quantifying the long-term role, system value and network interaction of gas distribution network-connected power generation. It will assess industrial and commercial combined heat and power and distribution-connected flexible generation under alternative decarbonisation pathways. The study will evaluate economic value, system resilience, future gas demand and interactions between gas and electricity infrastructure, supporting network planning and engagement with the National Energy System Operator, Ofgem and government.

The project will generate new learning on the economic value and future decarbonisation of combined heat and power; deployment and replacement pathways for distribution-connected flexible generation; regional interactions between gas and electricity networks; capacity adequacy and resilience; potential roles for biomethane and hydrogen; and implications for long-term gas network utilisation, investment and stranded asset risk.
file format pdf download NIA_CAD0167_NIA_Project_Eligibility_Assessment_2026-10-19.pdf
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