News

March 2009

• Eighth year of the Renewables Obligation

  Next month sees the start of the eighth year of the Renewables Obligation (RO), the main support scheme for renewable electricity projects in the UK.  A Renewable Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the UK. 

  For the eighth obligation, or compliance period (CP8), the ROC buyout price has been set by OFGEM at £37.19/MWh.  For CP8, the obligation on the suppliers is 9.7%; the actual renewable electricity generated will be closer to 5%.  The difference is a reflection on the difficulties of planning, grid connections, funding and procurement of renewable technologies. 

  Though the RO mechanism may not be perfect, the renewables sector clearly needs support if it is to meet its targets:

  • By 2020 15% of all the UK’s energy must come from renewable sources
  • This target will require up to 40% of the UK’s electricity supply to come from renewables

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