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Scotland confirms ROC prices for 2013-2017

23/07/12

Both the Scottish and UK governments conducted consultations to review the changes that should be made to the Renewable Obligation Certificates (ROC) subsidies. Both consultations indicated that the subsidy would be reduced by 10% from 2013 until 2017.

However, there have been indications that the Treasury wished to imposed deeper cuts of up to 25% and had refused to sign off on the Department of Energy and Climate Changes’ (DECC) proposed 10% reduction. The delay in announcing the new ROCs bandings has spread uncertainty over what the final outcome will be and dented investor confidence in the industry. Maria McCaffery, chief executive of RenewableUK, the trade body for the wind industry, said “It would be unacceptable if the decision were to be delayed until September – especially as the new banding levels are due to come into force just seven months later, in April 2013. It is imperative that investment and job creation are not harmed in one of our key growth sectors. The industry is demanding clarity at the earliest possible opportunity as a matter of urgency.

First Minister Alex Salmond warned that the UK Government’s delay in confirming subsidy levels for renewable energy could deter investment in the UK. The Scottish Government has therefore decided to act alone, ahead of the UK Government, and set its plans for onshore wind Renewable Obligations at the level both it and the DECC consulted on (0.9 ROCs – a reduction of 10%). The Scottish Government was clear that it supports renewable energy and will continue to do so, whether or not the UK Government follows suit.