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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.
A “hydro generating station” means a generating station which is wholly or mainly driven by water (other than a generating station driven by tidal flows, waves, ocean currents, geothermal sources or using a difference in tidal levels) and the “generating station” extends to all turbines supplied by the same civil works, except that any turbine driven by a compensation flow supplied by those civil works where there is a statutory obligation to maintain such compensation flow in a natural water course shall be regarded as a separate hydro generating station.
NB The current restrictions on pre-existing hydro above 20MW in capacity will continue to apply.

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.
A generating station is offshore if:-
(i) its turbines are situated wholly or mainly in offshore waters, and
(ii) it is not connected with dry land by means of a permanent structure which provides access to land above the mean low water mark.

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.
“Landfill” has the meaning given in Article 2(g) of the Landfill Directive (1999/31/EC).”

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.
“Pyrolysis” is the thermal degradation of a substance in the absence of any oxidising agent (other than that which forms part of the substance itself) to produce char and one or both of gas and liquid.
“Gasification” is the substoichiometric oxidation or steam reformation of a substance to produce a gaseous mixture containing two or all of the following: oxides of carbon, methane and hydrogen.

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.
“Anaerobic digestion” is the bacterial fermentation of organic material in the absence of free oxygen.

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
“Energy crop” means a plant crop planted after 31st December 1989 which is grown primarily for the purpose of being used as fuel or which is one of the following:
(a) miscanthus giganteus;
(b) salix (also known as short rotation coppice willow); or
(c) populus (also known as short rotation coppice poplar).

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.
“Energy crop” means a plant crop planted after 31st December 1989 which is grown primarily for the purpose of being used as fuel or which is one of the following:
(a) miscanthus giganteus;
(b) salix (also known as short rotation coppice willow); or
(c) populus (also known as short rotation coppice poplar).

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
“Energy crop” means a plant crop planted after 31st December 1989 which is grown primarily for the purpose of being used as fuel or which is one of the following:
(a) miscanthus giganteus;
(b) salix (also known as short rotation coppice willow); or
(c) populus (also known as short rotation coppice poplar).

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.
“Energy crop” means a plant crop planted after 31st December 1989 which is grown primarily for the purpose of being used as fuel or which is one of the following:
(a) miscanthus giganteus;
(b) salix (also known as short rotation coppice willow); or
(c) populus (also known as short rotation coppice poplar).

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

 

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