The UK Department for Energy and Climate Change (DECC) has announced a new proposal on how to support large scale renewable electricity under the Renewable Obligation. In response to increasing market pressures, particularly the need to reduce costs and promote cost efficient projects, DECC has altered the amount of Renewable Obligation Certificates (ROCs) that are awarded for one megawatt hour (MWh) of green electricity produced.
The subsidy for onshore wind production has been reduced from 1 ROC/MWh to 0.9 ROCs/MWh. For offshore wind production the certificate value of 2 ROCs/MWh was prolonged and will now only gradually decline by ten percent to 1.8 ROCs/MWh by 2016/17.
Rick Eggleston, Managing Director of REpower UK, believes the ROC banding announcement by DECC is welcome and will ensure growth remains healthy across the wind sector: “The level of cut in the case of onshore wind is to the lower end of industry expectations, with many of us having predicted something deeper. The reality is that in the case of onshore wind, the industry has achieved significant cost reductions in recent years as the industry matures and becomes more competitive. The cut in ROC level for onshore wind was inevitable, and at 0.9 is at an appropriate level to encourage the industry to drive towards further cost cuts, while reaffirming the UK Government’s commitment to renewables.”
[mappress]
Source: repower, November 01, 2011