Bioenergy, Geothermal, Hydropower, Solar, Wind Power

UK Extends Renewables Obligation Target Date

The United Kingdom is now planning on pushing back the target date for their national renewable energy goals. In his last month before being appointed as Financial Secretary to the Treasury, the former Energy Minister Stephen Timms announced the policy change as a way to encourage further investment in renewable energy technologies.

The proposals are published in the consultation document “Renewables Obligation Order 2005”, and the UK said the measures should strengthen the development of electricity generation capacity using renewable energy sources in the UK. The main measures outlined are: – Extend the level of the Renewables Obligation beyond 2010/11 to 2015/16 – Allow tradability between Northern Ireland Renewables Obligation Certificates (ROCs) and Great Britian’s ROCs – Further secure the buy-out fund in the event of a shortfall occurring – Consider the introduction of a single recycling mechanism for the separate buy-out funds – Introduce more flexibility for small generators The Renewables Obligation, which began in 2002, sets out targets for energy suppliers to source an increasing amount of their energy from renewable resources. ROCs are awarded to suppliers using renewable sources that allow them to demonstrate their compliance with the targets. ROCs can be traded between suppliers to make up any shortfall. “The Renewables Obligation is a long-term policy commitment and will help maintain investor confidence in the industry, which is central to achieving our target of 10 percent of renewable energy generation by 2010,” Minister Timms said. The Northern Ireland Renewables Obligation should be introduced in April of 2005, and the Energy Act 2004 provides for the full recognition and tradability of certificates there with those issued in Great Britain. A wider review of the Renewables Obligation is taking place in 2005/6.