What is the Renewables Obligation (RO)?
The Renewables Obligation is the main support scheme for renewable electricity projects in the UK. The Renewables Obligation, the Renewables Obligation Scotland and the Northern Ireland Renewables Obligation are designed to incentivise renewable generation in the electricity generation market. They place an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources.
What is a Renewables Obligation Certificate?
A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. One ROC is issued for each megawatt hour (MWh) of eligible renewable output generated.
Suppliers meet their obligations by presenting sufficient Renewables Obligation Certificates (ROC). Where suppliers do not have sufficient ROCs to meet their obligations, they must pay an equivalent amount into a fund, the proceeds of which are paid back on a pro-rated basis to those suppliers that have presented ROCs. The Government intends that suppliers will be subject to a Renewables Obligation until 31 March 2027.
Details on which generators would be considered eligible for ROCs under the Renewables Obligation are available on the Ofgem website.
Ofgem Renewables and CHP Register
Ofgem Renewables and CHP Register is an electronic, web-based system used to manage the renewables and CHP schemes that Ofgem administers on behalf of the Government, namely the Renewables Obligation (RO), the Climate Change Levy (CCL) exemption for Renewables and CHP and the Renewables Electricity Guarantee of Origin (REGO).
The register allows generators that wish to participate in any of the renewable schemes to apply for accreditation, manage output in respect of renewable electricity produced, receive certificates (ROCs, Renewable and CHP LECs and REGOs) and submit annual declarations. The register also allows generators, suppliers and participants to transfer certificates and access reports.
Suppliers will be able to use the register to comply with the Renewables Obligation (RO), to allocate CHP and Renewable LECs as evidence against supply to non-domestic end customers and to present REGOs as evidence of Fuel Mix Disclosure (FMD). ROC guidance to electricity suppliers is provided on the Ofgem website.
The value of a Renewable Obligation Certificate (ROC)
The current value of a ROC is approximately £40.00 per MWh; the value varies due to the influence of supply and demand.
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