Green energy - Renewable Obligation Certificates

In order to provide the necessary financial incentives to renewable electricity generation developers to build additional renewable generation, the government introduced the Renewable Obligation Order (RO).  The RO order authorised the industry regulator OFGEM to award renewable generators Renewable Obligation Certificates (ROC’s) for their actual output. The RO also places obligations on electricity suppliers to purchase a percentage of their total electricity supply from renewable electricity generation or face a complusory charge called the buy out price.  The generator may then sell the ROC’s to suppliers who would then use them to achieve their Renewable Obligation and thereby avoid the buy out price. The RO order is a complex area with many rules and has complex valuation aspects beyond this brief overview. Should you require additional information please contact us.


If you are a renewable generator then it is imperative that you obtain quality advice as RO has a big impact on your economics and/or project viablity.  Contact Guardian Energy for advice

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