The RO places a mandatory requirement for UK electricity suppliers to source a growing percentage of electricity from eligible renewable generation capacity (currently increasing to 15% by 2015).
Suppliers are required to produce evidence of their compliance with this obligation to the Office of Gas and Electricity Markets (OFGEM). Evidence can be via certificates, referred to as Renewable Obligations Certificates (ROCs). Each ROC represents one megawatt hour (1,000 units) of electricity generated from eligible sources.
On July 6 2006, the Carbon Trust published its latest research on renewable energy policy. This study, undertaken with management consultants L.E.K, was completed to better understand how the renewable policy framework could evolve to stimulate faster and more cost-effective deployment of renewable power at scale in the UK, and to feed our experience and ideas in this area into the Government’s Energy Review.
Our report concludes there is an urgent need to change/adapt the current renewables framework if we are to fully deliver the environmental and economic potential that these technologies offer the UK. A number of options are outlined in the report, of which the Renewable Development Premium (a fixed tariff on top of the wholesale electricity price tailored to each technology depending on the state of development) would deliver the most renewable electricity at the lowest cost.
On July 10 2006, the Government released its report on the Energy Review, which outlined a decision to consult on adapting the RO to encourage a diverse set of renewable technologies.
For more information please refer to The Renewables Obligation (BERR).
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