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Renewables Obligation (United Kingdom)

The Renewables Obligation (RO)[1] is a market support mechanism designed to encourage generation of electricity from eligible renewable sources in the United Kingdom. There are three related schemes for the three legal jurisdictions of the UK. In April 2002 the Renewables Obligation was introduced in England and Wales, and in Scotland as the Renewables Obligation (Scotland). The RO was later introduced in Northern Ireland in April 2005. In all cases, the RO replaced the Non-Fossil Fuel Obligation which operated from 1990.[2]

The RO placed an obligation on licensed electricity suppliers in the United Kingdom to source an increasing proportion of electricity from renewable sources, similar to a renewable portfolio standard. This figure was initially set at 3% for the period 2002/03, and in 2010/11 it was 11.1% (4.0% in Northern Ireland). By 2020 it was almost half of all electricity in England, Wales and Scotland, and nearly 20% in Northern Ireland. An extension of the scheme from 2027 to 2037 was declared on 1 April 2010 and is detailed in the National Renewable Energy Action Plan.[3]

The RO closed to new generation between March 2015 and March 2017, with some grace periods.[4] It was replaced by the Contracts for Difference scheme.[5] Accredited generating stations will continue to receive 20 years of support, until March 2037.

  1. ^ Ofgem and ROC Ofgem: What is the Renewables Obligation
  2. ^ "Renewable Energy" (PDF). Parliamentary Office of Science and Technology. October 2001. postnote 164. Retrieved 13 June 2011. {{cite journal}}: Cite journal requires |journal= (help)
  3. ^ http://www.decc.gov.uk/assets/decc/what%20we%20do/uk%20energy%20supply/energy%20mix/renewable%20energy/ored/25-nat-ren-energy-action-plan.pdf [bare URL PDF]
  4. ^ Ofgem. "Renewables Obligation (RO) - RO closure". www.ofgem.gov.uk. Retrieved 2024-12-15.
  5. ^ Watson, Nicole; Bolton, Paul (17 October 2023). Contracts for Difference Scheme (Report). House of Commons Library. Retrieved 5 May 2024.

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