Forestry Commission Scotland logo

Renewables Obligation Certificates

The Renewables Obligation (Scotland) (ROS) was introduced in Scotland in April 2002 to encourage generation of electricity from eligible renewable sources. It has been the main support scheme for renewable electricity projects across Scotland. The ROS provides revenue support for biomass electricity generation.

In April 2010, the Department of Energy and Climate Change (DECC) implemented the Feed In Tariff (FIT), which is designed to incentivise small scale (less than 5MW), low carbon electricity generation. This complements the Renewables Obligation for large scale generators and will work alongside the Renewable Heat Incentive. The FIT does not currently cover electricity generation from biomass combustion (anaerobic digestion is eligible). For further information upon FITs please see the DECC or the Energy Savings Trust.

Ofgem administers both the ROS and the Feed In Tariff and further information is available on their website.

Renewable Obligations Certificates

The ROS places an obligation on UK suppliers of electricity to source a proportion of their electricity from renewable sources, through Renewables Obligation Certificates (ROCs). This proportion increases each year and is 0.111 ROCs per MWh for 2010/11 (around 11%) increasing to 0.124 ROCs for 2011/12. The scheme is currently worth around £1.42 billion/year in support to the renewable electricity industry.

A ROC is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. Initially 1 ROC was issued for each megawatt hour (MWh) of eligible renewable output generated, then in 2009 banding was introduced to target support towards new technologies. The bands for biomass electricity generation are:

Technologies Level of Support (ROCs/MWh)
Co-firing on non-energy crop (regular) biomass 0.5

Co-firing of energy crops

Co-firing on non-energy crop (regular biomass with CHP)

1.0

Co-firing of energy crops with CHP

Dedicated regular biomass 1.5

1.5

Fuels made using anaerobic digestion, advanced gasification or pyrolysis

Dedicated biomass burning energy crops (with or without CHP)

Dedicated regular biomass with CHP
2.0

The levels of banding are reviewed at regular intervals with the next review due to implemented in April 2013. DECC have started work on the banding review and will consult on proposed changes to the RO in England & Wales next year. The Scottish Government will carry out a separate consultation on proposed changes to the ROS in Scotland.

Listed below are some useful links.

Scottish Government

DECC Renewables Obligation

Ofgem

E-ROC

DECC Feed in Tariff

Energy Savings Trust

The Scottish Government announced in December that it will be reviewing incentives for biomass  in 2011. This will be developed with stakeholders, including the UK Government, and options for discussion will include:• Whether to make large scale biomass for electricity plants ineligible for ROC support;