UK considers new proposals to support renewable energy

By OGJ editors
HOUSTON, Sept. 13 -- UK Energy Minister Stephen Timms has outlined proposals to encourage additional investment in renewable energy, including an extension of the Renewables Obligation beyond 2010-11 to 2015-16.

The Renewables Obligation began in 2002. It sets targets for energy suppliers to obtain an increasing amount of their energy from renewable resources. Renewable Obligation Certificates, ROCs, are awarded to suppliers using renewable sources.

"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% of renewable energy generation by 2010," Timms said last week.

Now, the UK Department of Trade and Industry has proposed to have 15.4% of UK's electric power generated from renewable resources by 2015-16.

The proposals also call for more flexibility for small electric generators. In addition, the proposals suggest that certificates from renewable electricity supplied in northern Ireland could be deemed eligible for use toward compliance with the renewables obligations of electric suppliers in UK, Wales, and Scotland.

By allowing ROCs for electricity supplies in northern Ireland access to a wider ROCs market, large enough to set an appropriate price for the ROCs, a Northern Ireland Renewables Obligation could be made viable, the proposal suggested.