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     Climate Change Levy
     Renewables Obligation
     Renewable Energy Guarantees of Origin
RO 

United Kingdom

Renewables Obligation

Effective from1st April 2002
Technologies

 

  • Tidal and tidal stream power
  • Wave power
  • Hydro: 20 MW or if commissioned after 1 April 2002
  • Onshore or offshore wind
  • Geothermal power
  • Photovoltaics
  • Energy crops
  • Other biomass
  • Landfill gas
  • Sewage gas
  • Co-firing of biomass
    - to 31 March 2009: unrestricted
    - 1 April 2009 to 31 March 2010: 25% of co-fired biomass must be energy crops
    - 1 April 2010 to 31 March 2011: 50% of co-fired biomass must be energy crops
    - 1 April 2011 to 31 March 2016: 75% of co-fired biomass must be energy crops
    - after 31 March 2016: co-firing ceases to be eligible

The eligibility of energy from waste is summarised below

 Mixed wasteWaste that is purely biomassEnergy crops, agricultural waste and forestry material
IncinerationIneligibleEligible*Eligible*
Pyrolysis, gasification and anaerobic digestionOnly non-fossil-derived energy is eligibleEligible*Eligible
Co-firingIneligibleEligible until 31 March 2016 (25 per cent energy crops from 1 April 2009;
50 per cent energy crops from 1 April 2010;
75 per cent energy crops from 1 April 2011)
Eligible until 31 March 2016

* Subject to a maximum fossil-derived energy content of 2 per cent to allow for accidental contamination.

Only stations first commissioned or re-equipped on or after 1 January 1990 (except micro-hydro and co-firing stations) are eligible.

All stations must be located within the UK, its territorial waters or the Continental Shelf. 

Obligation onSuppliers
Quota

5.5% for 2005/06

Rising to 15.4% by 2015/16

Value to a supplier

England & Wales - £45.05

Scotland - £51.38

Penalty for non-compliance£33.24 per MWh (2005-2006)
Certificate size1MWh
Issuing BodyOfgem

The Utilities Act 2000 introduced powers to promote the generation of electricity from renewable sources, known as the Renewables Obligation. This obliges licensed electricity suppliers to provide a specified proportion of electricity from renewable sources. Suppliers can meet their obligation by redeeming Renewables Obligation Certificates (ROCs) and/or by paying the buy-out price. The Energy Regulator (Ofgem) is responsible for accrediting eligible renewable generating stations, issuing ROCs and assessing supplier compliance.

To gain accreditation, a generating station must complete and send an "Application for Accreditation Questionnaire" containing information about the generating station to Ofgem, within two months of the commissioning date.

Monthly information including figures for gross generation and input electricity must be provided to Ofgem by the end of the second month following the month of generation. Generating stations must also complete monthly a Article 4(10)(c) declaration; and those using fuel must provide additional information in relation to their use of fuel.

The relevant pieces of legislation are:

The ROC Register contains details of all ROCs that have been issued. This records transfers of ROCs between registered holders and prospective registered holders. Suppliers complete and send the Compliance Report on the ROC Register, to produce ROCs to Ofgem before 1 October.