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Renewables Obligation: Difference between revisions
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[[Category: Legislation & Policy]][[Category:Economics]] | [[Category: Legislation & Policy]][[Category:Economics]] | ||
The | The [[Renewables Obligation]] ([[RO]]), the Renewables Obligation (Scotland) (ROS) and the Northern Ireland Renewables Obligation (NIRO) are designed to incentivise large-scale renewable electricity generation in the UK. The [[Renewables Obligation]] ([[RO]]), replaced the [[Non-Fossil Fuel Obligation]] ([[NFFO]]) as the subsidy for larger renewable energy generation subsidy, and requires electricity suppliers to source a proportion of the electricity they supply to UK customers from renewable sources (implemented via the [[Renewable Obligation Order 2002]], which started in Great Britain in April 2002 and April 2005 in Northern Ireland) and which remained open to new projects until 31 March 2017<ref>[https://www.ofgem.gov.uk/system/files/docs/2016/04/renewables_obligation_ro_faq.pdf Renewables Obligation FAQ]</ref><ref>[https://www.ofgem.gov.uk/system/files/docs/2019/04/ro_generator_guidance_apr19.pdf Renewables Obligation Guidance]</ref>. The most significant amendments to the scheme were made via a series of orders in 2006 which created ''''banding'''', and in 2010 which extended the scheme to 2037 (2033 in Northern Ireland). | ||
[[Ofgem]] are responsible for setting annual obligation levels<ref>[https://www.ofgem.gov.uk/sites/default/files/docs/2013/08/ro_total_obligation_august_2013_0.pdf [[Ofgem]] Obligation report Aug. 2013]</ref>. Electricity suppliers are required to comply with their obligation by either generating renewable power themselves, for which they are issued a [[ROC]] per megawatt hour of power generated, or they can purchase a [[ROC]] from a renewable power generator with surplus [[ROC]]s - and so the creation of the obligation creates a tradeable market for [[ROC]]s which flexes according to supply (generation) and demand (the obligation level to be met by a company). Those electricity generators that developed renewable generation projects during the running of the scheme had contracts for 20 years from the date of implementation - meaning the first projects in 2003 will be coming to the end of their arrangements in 2023, and the last projects implemented in 2017 will come to an end at the end of the scheme in 2037 (although some adjustments were made to solar power and wind power projects which were closed earlier). | [[Ofgem]] are responsible for setting annual obligation levels<ref>[https://www.ofgem.gov.uk/sites/default/files/docs/2013/08/ro_total_obligation_august_2013_0.pdf [[Ofgem]] Obligation report Aug. 2013]</ref>. Electricity suppliers are required to comply with their obligation by either generating renewable power themselves, for which they are issued a [[ROC]] per megawatt hour of power generated, or they can purchase a [[ROC]] from a renewable power generator with surplus [[ROC]]s - and so the creation of the obligation creates a tradeable market for [[ROC]]s which flexes according to supply (generation) and demand (the obligation level to be met by a company). Those electricity generators that developed renewable generation projects during the running of the scheme had contracts for 20 years from the date of implementation - meaning the first projects in 2003 will be coming to the end of their arrangements in 2023, and the last projects implemented in 2017 will come to an end at the end of the scheme in 2037 (although some adjustments were made to solar power and wind power projects which were closed earlier). | ||