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Micro and small generators typically connect under distribution network operator (DNO) processes and must meet relevant engineering requirements. Standards such as the G98 (for very small single-connection generation) and G99 (for larger or multiple-connection generators) define technical compliance, protection settings and testing regimes to maintain network safety and balance. These procedures are technical and governed by industry codes administered through network operators and informed by Ofgem’s regulatory framework.
Separately, the electricity market requires registration with central industry bodies for balancing and settlement if a generator exports to the grid. Metering arrangements, registration with the local DNO, and agreements about export limits, constraints or curtailment influence revenue certainty. Ofgem’s role is to license market participants where applicable, supervise market arrangements, and to set rules about network charging and access that can materially affect small projects’ economics.
For retail investors considering fractional stakes in renewable projects, the implication is that project-level compliance and connection status are fundamental due diligence items. Understanding whether a project operates under the small-generator technical standards, its metering and settlement arrangements, and how network constraints are managed will influence expected yield volatility and operational risk for fractional digital share investors.