Renewables Obligation for 2017-18 set by Government

The Department for Business, Energy & Industrial Strategy has confirmed the Renewables Obligation (RO) levels for the 2017-18 compliance period. As part of the Renewables Obligation Order (ROO), the secretary of state must publish the number of renewables obligation certificates (ROCs) that electricity generators are required to produce during an obligation period. The policy paper that was issued on 1 October stated that the overall size of the obligation would be set at 108.2 million ROCs in the UK. This means that the Renewables Obligation, the number of ROCs that electricity suppliers are required to produce during the 2017/18 obligation period, will be 0.409 ROCs per MWh in England, Wales and Scotland, and 0.167 ROCs per MWh in Northern Ireland.

However the government further detailed that it would soon outline how the obligation level will be impacted by the planned exemption for energy intensive industries up to 85% of the indirect costs of the RO. The government begun a consultation on exemption from RO for energy intensive industries (EIIs) in April 2016 whereby plans to introduce savings for EIIs via lower RO rates passed through by their supplier. Further details will be key for these businesses ahead of the proposed change in policy from April 2017.

Source: Department for Business, Energy & Industrial Strategy

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