Renewables Obligation
The Renewables Obligation was introduced in 2002 to support electricity generation from renewable sources. It places a mandatory requirement on UK electricity suppliers to source a growing percentage of electricity from eligible renewable generation capacity. Suppliers are required to produce evidence of their compliance with this obligation via certificates, referred to as Renewables Obligation Certificates (ROCs). Currently each ROC represents 1MWe of electricity generated from eligible renewable sources.
A new Renewables Obligation Order came into effect on 1st April 2009.
Key Features:
- Introduction of the concept of "banding" which provides varying levels of support (ROCs/MWh) for different types of renewable generation
- Enhanced support for schemes fuelled by energy crops
- Increased level of support to Good Quality (GQ) CHP over power-only schemes (Dedicated biomass, Energy from Waste, and cofiring of biomass & energy crops)
- Continued support for GQ CHP fuelled by waste
For GQ CHP, the power output eligible for the award of ROCs is determined using the relationship:
Eligible Power Output = Net Power Output X Biomass Content (%) X Qualifying Power Output/Total Power Output*
Eligible renewable CHP technologies and support levels
The rate at which renewable fuel fired CHP schemes receive ROCs is dependent on the fuel type and technology used. DECC are currently undertaking a review of the RO. A consultation on the RO Banding review has been undertaken and the Government intends to publish the response to this consultation shortly. Current RO technology bandings applicable to CHP plants, inclusive of the GQCHP ROC uplift, are shown in the table below:
Technology | Current bandings |
| Dedicated biomass with CHP | 2 ROCs/MWhe |
Dedicated energy crops with CHP | 2 ROCs/MWhe |
| Co-firing of biomass with CHP | 1 ROC/MWhe |
| Co-firing of energy crops with CHP | 1.5 ROCs/MWhe |
| Energy from waste with CHP | 1 ROC/MWhe |
| Anaerobic digestion | 2 ROCs/MWhe |
| Sewage gas | 0.5 ROCs/MWhe |
| Standard gasification and pyrolysis | 1 ROC/MWhe |
| Advanced gasification and pyrolysis | 2 ROCs/MWhe |
The ROCs awarded to a renewable CHP generator can be traded on the spot market. The value of ROCs depends on market demand but currently varies between £40 and £50. Policy responsibility for the RO lies with the Department of Energy and Climate Change (DECC) and is administered by the Office of Gas and Electricity Markets (Ofgem).
Further information can be found by clicking the following links:
- RO policy and regulation
- RO applications and administration
- CHPQA
- Interaction between the RHI and Renewables Obligation
*Figures taken from the scheme's ‘ROC Eligible' CHPQA Certificate (see CHPQA Guidance Note 44)
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