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DECC releases Renewables Obligation banding review

20/10/2011

The Renewables Obligation (RO) banding review sets out the proposals for renewable energy generating stations.

Highlights of the proposals include:

  • Onshore wind will undergo a reduction in subsidy from 1 ROC/MWh to 0.9 ROC/MWh from 1 April 2013
  • Offshore wind will have a reduction in subsidy from 2 ROC/MWh to 1.9 ROC/MWh in 2015/2016 with a further reduction in 2016/2017 to 1.8 ROC/MWh
  • More support will be provided to marine and tidal technology by proposing to offer support at 5 ROC/MWh for wave and tidal technologies up to 30MW per generating station, for systems that are operational before 1 April 2017
  • There will be new support for Biomass in the form of 2 new bands covering Biomass Conversion and Enhanced Co-firing, which would qualify for 1 ROC/MWh from 1 April 2013
  • There will be a staggered approach to reduce the number of ROCs for solar. Proposals suggest  2 ROC/MWh to remain until 2014, 1.9 ROC/MWh in 2015/16 and 1.8 ROC/MWh in 2016/17
  • Other reductions are proposed for hydro, advanced conversion technologies (pyrolysis and gasification), energy from waste, and landfill gas

Chris Huhne, the Energy and Climate Change Secretary, stated that the Government has “studied how much subsidy different technologies need. Where new technologies desperately need help to reach the market, such as wave and tidal, we’re increasing support. But where market costs have come down or will come down, we’re reducing the subsidy.”

This highlights that although some renewable energy technologies are seeing proposals for reductions in ROC/MWh, this is not due to the Government’s decreased commitment, but rather market forces on the related costs.

DECC invites interested parties to submit comments in response to these proposals during this consultation period by 12 January 2012.

The review highlights the Government's continued support for renewable energy, the crucial role it plays to tackle climate change and in creating jobs as well as decreasing the reliance on imported energy.

 

For more information see:

http://www.decc.gov.uk/en/content/cms/consultations/cons_ro_review/cons_ro_review.aspx