Renewables Obligation price update for 2012-13
The Renewables Obligation (RO) buy-out price is updated annually in line with the Retail Price Index.
The buy-out price is the amount that electricity suppliers must pay generators for each Renewables Obligation Certificate (ROC).
For the eleventh obligation, or compliance period CP11, which runs between 1st April ’12 – 31st March ’13, the ROC buy-out price has been set by OFGEM at £40.71/ROC.
The RO is the main support scheme for renewable electricity projects in the UK. It places an obligation on UK electricity suppliers to source an increasing proportion of their electricity from renewables.
A ROC is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. A technology dependant number of ROCs are issued for each megawatt hour (MWh) of eligible renewable output generated.
- Onshore Wind – 1 ROC/MWh
- Offshore Wind – 2 ROCs/MWh
- Anaerobic Digestion – 2 ROCs/MWh
This support for renewable electricity generation is very clear. There are many other schemes supporting fossil generating stations which are not so well publicised or accountable.