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Tuesday, 18 December 2012

DECC publishes support packages for solar and biomass

See my article for Renewable Energy Magazine. The Renewables Obligation (RO) encourages the generation of electricity from renewable sources in the UK and was introduced in 2002 with the exception of Northern Ireland where it was introduced in April 2005. It essentially places an obligation electricity suppliers in the UK to source an increasing proportion of electricity from renewable sources.

Renewable Obligation Certificates (ROCs) are green certificates presented by Ofgem to accredited renewable energy generators for the electricity they generate. They are intended to create a market and be traded at market prices.They can be traded with other parties but are ultimately used to demonstrate that the suppliers have met their obligations. Generators will sell their ROCs to electricity suppliers or traders and this allows them to receive a premium as well as the wholesale electricity price. Suppliers present the certificates to Ofgem to demonstrate their compliance with the obligation but if they do not present enough ROCs the suppliers have to pay a penalty known as the Buy Out Price. For 2012/13 this is set out at £40.13 for each ROC. The money collected by Ofgem from the Buy Out Fund is recycled on a pro-rata basis to suppliers who presented enough ROCs.

The cost of ROCs is paid for by electricity consumers of supply companies that fail to present sufficient ROCs while reducing the cost to consumers of supply consumers who submit large numbers of ROCs. The default is one ROC per megawatt hour (MWh) of production with some technologies receiving more.


  1. Now a day renewal energy source is water ,air and solar.
    So we use more and more this renewal energy source so we use this all electronics material more and more time.

  2. The solar photovoltaic (PV) industry and biomass developers were today given certainty on projects to be supported under the Government’s Renewables Obligation (RO).

    In order to incentivise solar projects on buildings, building-mounted solar PV projects will receive higher rates than ground-mounted projects. This will encourage the installation of solar projects at large factory or warehouse buildings.

    The Government also announced today decisions that will ensure that the RO brings forward new biomass projects that are both cost and carbon effective. The support set out could unlock investment decisions worth £600m, creating around 1,000 construction jobs.


Energy & Environment Dates 2012