Latest NewsJohn Healey unveils proposal to do away with planning permission for wind turbines
Thu, 19 Nov 2009 10:45:26
Wind turbines standing as high as 15 metres (50ft) will be allowed on farmland and industrial estates without planning permission, under proposals to boost renewable energy.
World leaders not ready for climate change deal
Tue, 17 Nov 2009 20:12:52
Barack Obama and other world leaders have said that it will not be possible to strike a legally binding deal on climate change at the forthcoming UN Conference in Copenhagen.
Vulnerable countries make carbon neutral pledge
Tue, 17 Nov 2009 20:04:33
A group of 11 poor countries that are likely to be severely affected by climate change have pledged to become carbon neutral, and challenged the rest of the world to match them. The move is designed as an appeal to developed nations ahead of December’s UN Climate Summit in Copenhagen.
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Renewable Obligation (RO) and Renewable Obligation Certificates (ROC’s)
What is Renewable Obligation...
What is Renewable Obligation...
Renewable Obligation (RO) is the Governments main support scheme for renewable electricity that’s administered by Ofgem. It was first implemented in 2001 and is now due to run until at least 2037 following the announcement to extend the scheme for an additional 10 years in the 24th November Pre-Budget Report.
Extract from - Pre-Budget Report statement to the House of Commons, delivered by the Rt Hon Alistair Darling MP, Chancellor of the Exchequer
'I can announce today that the Government will extend the Renewables Obligation for an additional ten years to 2037.
By requiring energy companies to generate a share of energy from renewable sources, the Obligation will underpin investor confidence and support the development of renewable energy.
We are taking the right long-term decisions to protect the environment, create low-carbon jobs and provide energy security.'
How it Works...
It places an obligation on all electricity retailers to source a proportion of their electricity from renewable sources that can be electricity generating Microgeneration technologies like wind turbines, solar PV or hydro. Each year the proportion grows as detailed below*.
*Information pre-extension of RO till 2037. Malcolm Wicks MP, Minister for Energy. Reported Jan 08 that as part of the Renewable Obligation Consultation a proposal to increase the level of the RO to above the level previously announced (15.4%) if actual generation requires, to a maximum level equivalent to 20% of total supply.
Obligation Period |
RO of total Energy supplied |
| 1st April 06 to 31st March 07 | 6.7 |
| 1st April 07 to 31st March 08 |
7.9 |
| 1st April 08 to 31st March 09 | 9.1 |
| 1st April 09 to 31st March 10 | 9.7 |
| 1st April 10 to 31st March 11 | 10.4 |
| 1st April 11 to 31st March 12 | 11.4 |
| 1st April 12 to 31st March 13 | 12.4 |
| 1st April 13 to 31st March 14 | 13.4 |
| 1st April 14 to 31st March 15 | 14.4 |
| 1st April 15 to 31st March 16 | 15.4 |
| Each subsequent periond of 12 months ending with the period of 12 mnths ending on 31st March 2027 | 15.4 |
Ofgem determine each retailer’s obligation at the end of each financial year. The electricity retailer then discharges their obligation by presenting ROC’s to prove they have supplied the required proportion of renewable power.
If the retailer can’t present the required number of ROC’s they must pay a buyout for each megawatt hour of ‘brown’ non-renewable electricity provided.
The buyout fund is repaid pro rata to the retailers who presented ROC’s.
Therefore each ROC’s has a value at least equal to the buyout value. For 1st April 2008/ 31st March 2009 the buyout value was £35.76MWh.
However the increasing level of renewable obligation each year is intended to ensure a shortfall in renewable generation forcing many retailers to pay buyout fees to fulfil their obligation.
Hence it is worth an electricity retailer paying over the buyout price for ROC’s as they will also receive their share of revenue from the buyout fund; hence making ROC’s a tradable item.
What’s a ROC worth...
ROC’s are a tradable item therefore their value can’t be guaranteed. However the increasing Renewable Obligation level for electricity retailers should ensure a healthy market is maintained.
The table below shows the ROC sale prices acheived at e-ROC auctions. This shows ROC’s are achieving a value of £50+. Although for small Microgeneration producers it is often more economic due to minimum dealing costs incurred etc. to go through a ROC agent such as Good Energy who can amalgamate the ROC’s generated from several micro-generators and complete the significant administration burden of dealing in ROC’s for you.
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Auction Date
Average ROC Price
Lowest ROC Price
Total No. of ROC's
9 October 2008
£51.29
£51.20
101,185
8 July 2008
£53.27
£53.10
143,443
10 April 2008
£51.39
£49.75
83,563
8 January 2008
£49.95
£49.75
64,294
9 October 2007
£49.27
£49.11
90,720
17 July 2007
£48.12
£47.50
59,170
24 April 2007
£47.51
£47.50
74,343
22 January 2007
£46.17
£46.00
49,446
24 October 2006
£44.81
£44.50
68,425
20 July 2006
£40.62
£40.60
227,909
20 April 2006
£40.65
£40.60
261,201
19 January 2006
£38.42
£37.75
197,930
20 October 2005
£39.16
£35.40
216,177
20 July 2005
£45.72
£45.50
197,944
20 April 2005
£46.07
£45.50
180,083
20 January 2005
£47.18
£46.90
151,348
26 October 2004
£46.12
£45.90
129,919
21 July 2004
£52.07
£51.76
176,759
20 April 2004
£49.11
£48.80
166,643
20 January 2004
£47.46
£47.30
96,449
21 October 2003
£45.93
£44.80
123,979
16 July 2003
£48.21
£47.71
158,512
15 April 2003
£46.76
£46.75
191,897
16 January 2003
£47.46
£45.51
64,337
17 October 2002
£47.12
£47.00
85,404
£51.29
£51.20
8 July 2008
10 April 2008
8 January 2008
£49.75
9 October 2007
17 July 2007
24 April 2007
22 January 2007
24 October 2006
20 July 2006
20 April 2006
19 January 2006
20 October 2005
20 July 2005
How many ROC’s will I receive from my Small Wind Turbine, Solar PV system etc...
All Microgeneration technologies stations (50kW or less total installed capacity) are to receive 2 ROC’s per MWh generated from the 1st April 2009 (subject to Parliamentary time and approval).
The Government has also committed to retain this level of support following the first scheduled review in 2013.
This simplification of the ROC system delivers the benefit that these with more than one Microgeneration technology will now able to combine and trade their ROC’s from Microgeneration systems together.
What do I need to do to claim ROC’s
To claim ROC’s your Microgeneration system will require an Ofgem approved total generation meter to be installed, we will install this meter as part of your Microgeneration installation.
Note. Whether the electricity generated is used on site or not, ROC’s can be claimed for all electricity generated, hence this meter is installed on the output from the generator.
You or an agent acting on your behalf will then need to register your generator with Ofgem and regular meter reading returns made to Ofgem or your chosen agent.