Renewable Obligation Certificate (ROC) Banding
The UK Government believes that renewables have a significant role to play in the future electricity generation mix and that the stimulus provided by the development of a carbon market through the EU Emissions Trading Scheme (EU ETS) and the Renewables Obligation will lead to growth in Renewables development in the future.
However, the pace of growth towards the Government’s target for renewable electricity could be constrained by several factors, in particular: delays in the planning and grid connection of renewable energy projects, constraints on the practical resource available for the most economic forms of renewable energy, and the higher costs of renewable energy projects in less mature or emerging technology areas, such as offshore wind and biomass.
In order to help overcome these constraints Government will introduce banding of Renewable Obligation Certificates following a multiple/fractional ROC model with bands based on technology groupings. (Note that Microgeneration projects will be placed in the same bands as large scale generation using the same technology.)
4 bands are proposed:
- Technologies in the Established Band will receive 0.25 ROCs/MWh;
- Technologies in the Reference Band will receive 1 ROC/MWh;
- Technologies in the Post-Demonstration Band will receive 1.5 ROCs/MWh;
- Technologies in the Emerging Technologies Band will receive 2 ROCs/MWh.
The following table and sections provides an overview of each proposed band.
| Generation type | Definition | ROCs/MWh |
Hydro-electric | Electricity generated by a hydro generating station. | 1 |
Onshore Wind | Electricity generated from wind by a generating station that is not offshore (see offshore below). | 1 |
Offshore Wind | Electricity generated from wind by a generating station that is offshore. | 1.5 |
Wave | Electricity generated from capture of the energy created from the motion of waves on the sea. | 2 |
Tidal Stream | Electricity generated from the capture of the energy created from the motion of tidal currents in the sea. | 2 |
Tidal Impoundment – Tidal Barrage | Electricity generated by a generating station driven by the release of water impounded behind a barrier using the difference in tidal levels and that barrier is connected to both banks of a river and is less than 1 GW declared net capacity. | 2 |
Tidal Impoundment - Tidal Lagoon | Electricity generated by a generating station driven by the release of water impounded behind a barrier using the difference in tidal levels and which is not a tidal barrage and is less than 1 GW declared net capacity. | 2 |
Solar Photovoltaic | Electricity generated from the direct conversion of sunlight to electricity. | 2 |
Geothermal | Electricity generated using naturally occurring subterranean heat. | 2 |
Geopressure | Electricity generated using naturally occurring subterranean pressure. | 1 |
Landfill Gas | Electricity generated from the gas formed by the anaerobic digestion of material in a landfill. | 0.25 |
Sewage Gas | Electricity generated from the gas formed by the anaerobic digestion of sewage. | 0.5 |
Energy from Waste with CHP | Electricity generated from the combustion of waste in a qualifying combined heat and power generating station. | 1 |
Gasification / Pyrolysis | Electricity generated from the conversion of waste or biomass into a liquid or gaseous fuel, or both, for use in a generating station, by the processes of gasification or pyrolysis or any combination thereof, and; in which the gross calorific value of the produced fuel, or fuels, at the inlet to the generator and as measured at 15 deg C and 1 atmosphere pressure is at least 4.4 MJ/m3 for gaseous fuels or 10 MJ/kg for liquid fuels. This band does not, however, include electricity generated from such fuels in a calendar month in which the generating station has generated electricity partly from fossil fuel. | 2 |
Anaerobic Digestion | Electricity generated from the gas formed by anaerobic digestion of material which is neither sewage nor landfill. This band does not, however, include electricity generated from such fuels in a calendar month in which the generating station has generated electricity partly from fossil fuel. | 2 |
Co-firing of Biomass | Electricity generated from biomass by a generating station in a calendar month in which it has generated electricity partly from fossil fuel and partly from biomass | 0.5 |
Co-firing of Energy Crops | Electricity generated from energy crops by a generating station in a calendar month in which it has generated electricity partly from fossil fuel and partly from energy crops | 1 |
Co-firing of Biomass with CHP | Electricity generated from biomass by a qualifying combined heat and power generating station in a calendar month in which it has generated electricity partly from fossil fuel and partly from biomass, and where the fossil fuel and biomass have been burned in separate boilers | 1 |
Co-firing of Energy Crop with CHP | Electricity generated from energy crops by a qualifying combined heat and power generating station in a calendar month in which it has generated electricity partly from fossil fuel and partly from energy crops, and where the fossil fuel and energy crops have been burned in separate boilers. | 1.5 |
Dedicated Biomass | Electricity generated from biomass, except for electricity generated by a generating station in a calendar month in which it has generated electricity partly from fossil fuel and partly from biomass | 1.5 |
Dedicated Energy Crops | Electricity generated from energy crops, except for electricity generated by a generating station in a calendar month in which it has generated electricity partly from fossil fuel and partly from energy crops | 2 |
Dedicated Biomass with CHP | Electricity generated from biomass by a qualifying combined heat and power generating station in a calendar month in which it is fuelled wholly by biomass. | 2 |
Dedicated Energy Crops with CHP | Electricity generated from energy crops by a qualifying combined heat and power generating station in a calendar month in which it is fuelled wholly by biomass. | 2 |
In addition the Government remains committed to the principle of grandfathering – the position of those who have made significant investments should be protected in terms of the number of ROCs they receive. Generating capacity which becomes operational on or after 1 April 2009 will receive entitlement according to the bands in place.
Other Topics
Previous: Renewables Obligations
