Renewables Obligation - Government Review

Government Review

See also: Decarbonisation Measures in Proposed UK Electricity Market Reform

The scheme is currently being reviewed by Government following a consultation period that finished in September 2007. The document at the centre of the consultation set out an amended form of the RO which will see different technologies earn different numbers of ROCs. This has not yet been adopted as policy.

On 22 January 2007, Ofgem called for the Renewables Obligation to be replaced, claiming that the scheme is a 'very costly way' of supporting renewable electricity generation . In particular they are concerned that electricity customers pay for renewables projects even if they are not built due to problems obtaining planning permission, and the failure of the Renewables Obligation to link financial support for renewables to either the electricity price or the price of renewables in the European Union Emissions Trading Scheme.

The British Wind Energy Association, whose members are major beneficiaries of the existing scheme, claims that Ofgem is partly responsible for the costs because it has failed to prioritise work on the National Grid which would allow more renewable capacity to be connected. They also stressed the need to maintain stability in the marketplace to maintain the confidence of investors .

The concerns of both bodies seem to be shared by the Renewable Energy Association .

The Scottish Wind Assessment Project has criticised the scheme for rewarding reductions in renewable electricity output: two electricity suppliers, Scottish and Southern Energy and Npower, down-rated several large hydro-power stations in order to qualify for Renewables Obligation Certificates .