The Renewables Obligation Order 2009

• “advanced gasification” means electricity generated from a gaseous fuel which is produced from waste or biomass by means of gasification, and has a gross calorific value when measured at 25 degrees Celsius and 0.1 megapascals at the inlet to the generating station of at least 4 megajoules per metre cubed;

• “advanced pyrolysis” means electricity generated from a liquid or gaseous fuel which is produced from waste or biomass by means of pyrolysis, and in the case of a gaseous fuel, has a gross calorific value when measured at 25 degrees Celsius and 0.1 megapascals at the inlet to the generating station of at least 4 megajoules per metre cubed, and in the case of a liquid fuel, has a gross calorific value when measured at 25 degrees Celsius and 0.1 megapascals at the inlet to the generating station of at least 10 megajoules per kilogram;

• “co-firing of biomass” means electricity generated from regular biomass in a month in which the generating station generates electricity partly from fossil fuel and partly from renewable sources;

• “co-firing of biomass with CHP” means electricity generated from regular biomass by a qualifying combined heat and power generating station in a month in which it generates electricity partly from fossil fuel and partly from renewable sources, and where the fossil fuel and regular biomass have been burned in separate boilers or engines;

• “co-firing of energy crops” means electricity generated from energy crops in a month in which the generating station generates electricity partly from fossil fuel and partly from renewable sources;

• “co-firing of energy crops with CHP” means electricity generated from energy crops by a qualifying combined heat and power generating station in a month in which it generates electricity partly from fossil fuel and partly from renewable sources, and where the fossil fuel and energy crops have been burned in separate boilers or engines;

• “dedicated biomass” means electricity generated from regular biomass in a month in which the generating station generates electricity only from regular biomass or only from biomass;

• “dedicated energy crops” means electricity generated from energy crops in a month in which the generating station generates electricity only from energy crops or only from biomass;

• “electricity generated from landfill gas” means electricity generated from gas formed by the digestion of material in a landfill;

• “electricity generated from sewage gas” means electricity generated from gas formed by the anaerobic digestion of sewage (including sewage which has been treated or processed);

• “energy from waste with CHP” means electricity generated from the combustion of waste (other than a fuel produced by means of anaerobic digestion, gasification or pyrolysis) in a qualifying combined heat and power generating station in a month in which the station generates electricity only from renewable sources and those renewable sources include waste which is not biomass;

• “geopressure” means electricity generated using naturally occurring subterranean pressure;

• “geothermal” means electricity generated using naturally occurring subterranean heat;

• “hydroelectric” means electricity generated by a hydro generating station;

• “offshore wind” means electricity generated from wind by a generating station that is offshore, and a generating station is offshore if— its turbines are situated wholly in offshore waters, and it is not connected to dry land by means of a permanent structure which provides access to land above the mean low water mark;

• “onshore wind” means electricity generated from wind by a generating station that is not offshore;

• “solar photovoltaic” means electricity generated from the direct conversion of sunlight into electricity;

• “standard gasification” means electricity generated from a gaseous fuel which is produced from waste or biomass by means of gasification, and has a gross calorific value when measured at 25 degrees Celsius and 0.1 megapascals at the inlet to the generating station which is at least 2 megajoules per metre cubed but is less than 4 megajoules per metre cubed;

• “standard pyrolysis” means electricity generated from a gaseous fuel which is produced from waste or biomass by means of pyrolysis, and has a gross calorific value when measured at 25 degrees Celsius and 0.1 megapascals at the inlet to the generating station which is at least 2 megajoules per metre cubed but is less than 4 megajoules per metre cubed;

• “tidal impoundment – tidal barrage” means electricity generated by a generating station driven by the release of water impounded behind a barrier using the difference in tidal levels where the barrier is connected to both banks of a river and the generating station has a declared net capacity of less than 1 gigawatt;

• “tidal impoundment – tidal lagoon” means electricity generated by a generating station driven by the release of water impounded behind a barrier using the difference in tidal levels where the barrier is not a tidal barrage and the generating station has a declared net capacity of less than 1 gigawatt;

• “tidal stream” means electricity generated from the capture of the energy created from the motion of naturally occurring tidal currents in water; and

• “wave” means electricity generated from the capture of the energy created from the motion of naturally occurring waves on water.

• (2) For the purposes of this Schedule—

• (a) fossil fuel does not include waste which is a renewable source; and

• (b) in determining how electricity has been generated, no account is to be taken of any fossil fuel or waste which a generating station uses for permitted ancillary purposes.

PART 2 — AMOUNT OF ELECTRICITY TO BE STATED IN ROCs GENERALLY

Generation type	Amount of electricity to be stated in a renewables obligation certificate
Electricity generated from landfill gas	4 megawatt hours
Electricity generated from sewage gas	2 megawatt hours
Co-firing of biomass	2 megawatt hours
Onshore wind	1 megawatt hour
Hydro-electric	1 megawatt hour
Co-firing of energy crops	1 megawatt hour
Energy from waste with CHP	1 megawatt hour
Geopressure	1 megawatt hour
Co-firing of biomass with CHP	1 megawatt hour
Standard gasification	1 megawatt hour
Standard pyrolysis	1 megawatt hour
Offshore wind	⅔ megawatt hour
Dedicated biomass	⅔ megawatt hour
Co-firing of energy crops with CHP	⅔ megawatt hour
Wave	½ megawatt hour
Tidal-stream	½ megawatt hour
Advanced gasification	½ megawatt hour
Advanced pyrolysis	½ megawatt hour
AD	½ megawatt hour
Dedicated energy crops	½ megawatt hour
Dedicated biomass with CHP	½ megawatt hour
Dedicated energy crops with CHP	½ megawatt hour
Solar photovoltaic	½ megawatt hour
Geothermal	½ megawatt hour
Tidal impoundment – tidal barrage	½ megawatt hour
Tidal impoundment – tidal lagoon	½ megawatt hour

PART 3 — AMOUNT OF ELECTRICITY TO BE STATED IN RENEWABLES OBLIGATION CERTIFICATES WHERE ARTICLE 30(3) APPLIES

Generation type	Amount of electricity to be stated in a renewables obligation certificate
Electricity generated from landfill gas	1 megawatt hour
Electricity generated from sewage gas	1 megawatt hour
Offshore wind	1 megawatt hour
Wave	1 megawatt hour
Solar photovoltaic	1 megawatt hour

PART 4 — AMOUNT OF ELECTRICITY TO BE STATED IN RENEWABLES OBLIGATION CERTIFICATES WHERE ARTICLE 30(5) OR ARTICLE 31(4) APPLIES

Generation type	Amount of electricity to be stated in a renewables obligation certificate
Electricity generated from landfill gas	1 megawatt hour
Electricity generated from sewage gas	1 megawatt hour

SCHEDULE 3 — AMOUNT OF RELEVANT SHORTFALL FOR THE RELEVANT OBLIGATION PERIOD

Obligation period	Amount
1st April 2008 to 31st March 2009	£9,100,000
1st April 2009 to 31st March 2010	£9,700,000
1st April 2010 to 31st March 2011	£10,400,000
1st April 2011 to 31st March 2012	£11,400,000
1st April 2012 to 31st March 2013	£12,400,000
1st April 2013 to 31st March 2014	£13,400,000
1st April 2014 to 31st March 2015	£14,400,000
1st April 2015 to 31st March 2016	£15,400,000
Each subsequent period of twelve months ending with the period of twelve months ending on 31st March 2027	£15,400,000

SCHEDULE 4 — THE ROC REGISTER

1

The Authority must establish and maintain the Register referred to in article 59 (which may be in electronic form) at one or more of its premises.

2

The Register must identify whether or not a ROC subsists and details of its particulars.

3

Particulars of a ROC comprise—

• (a) the name of the person to whom the Authority issues the ROC or, where the Authority has amended the Register in dealing with a request for substitution in accordance with paragraph 7, the name of the substitute (“the registered holder”); and

• (b) an identifier unique to the ROC (“the ROC identifier”) determined by the Authority or, in the case of Northern Ireland certificates, the Northern Ireland authority and containing the following information (or reference to that information in coded format)—

• (i) the month and year during which the electricity was generated;

• (ii) the location of the generating station or, where the ROC certifies the matters within section 32B(5), (6) or (8) of the Act, the location of the agent to whom, by virtue of article 35, the ROC was issued;

• (iii) a description of that generating station or, where the ROC certifies the matters within section 32B(5), (6) or (8) of the Act, the generating stations to which the ROC relates, including reference to the renewable source or sources used by it or them to generate electricity;

• (iv) the date of issue of the ROC; and

• (v) the number given to the ROC by the Authority or, as the case may be, the Northern Ireland authority.

4

A person may only be the registered holder of a ROC or have an entry made and maintained in respect of them under article 59(3)(b) if they provide to the Authority in writing—

• (a) evidence of their identity; and

• (b) where persons are authorised to act on their behalf in respect of the production of ROCs under article 5(2) or in respect of requests for amendments to be made to the Register as provided for in this Schedule, details of those persons.

5

The Authority may from time to time draw up procedural guidelines for itself and others to assist it in maintaining the Register and carrying out its functions in respect thereof.

6

The Authority must delete from the Register—

• (a) any ROC which has been revoked by it;

• (b) any ROC which has been produced to it under article 5(2);

• (c) any ROC which is no longer eligible to be produced to it under article 5(2);

• (d) any ROC which it is asked to delete from the Register by the registered holder of the ROC; or

• (e) any ROC which has been (according to the Northern Ireland authority) produced to the Northern Ireland authority by a Northern Ireland supplier under a NIRO Order,

and where a ROC is so deleted, it cannot thereafter be produced to the Authority under article 5(2).

7

Where the registered holder of a ROC and a person whom the holder wishes to be the registered holder of it require the Register to be amended, by substituting for the name of the registered holder the name of the other person (“the substitute”), (who must be a person whose name is included on the list referred to in article 59(3)(b))—

• (a) the registered holder and the substitute must each submit to the Authority in writing requests which are identical in all material respects; and

• (b) where the requirements of sub-paragraph (a) are met, the Authority must, within 5 banking days after the banking day on which (at the commencement of its working hours) it is first in possession of the requests, amend the particulars of the ROC recorded in the Register to show the substitute as the registered holder.

8

Where the Authority receives requests under paragraph 7(a) it must inform both the registered holder of the ROC and the substitute that the requests have been received and, in the event that the requests are not identical in all material respects, must draw this to their attention.

9

Where—

• (a) a ROC is issued under this Order, or

• (b) a substitute is recorded as the registered holder of a ROC pursuant to paragraph 7,

the Authority must notify the registered holder or, as the case may be, the former and new registered holder of that fact in writing within 5 banking days of the issue or substitution having taken place.

10

The substitute cannot be the registered holder of a ROC until such time as the particulars of the ROC recorded in the Register identify the substitute as such.

11

The Register may be amended by a decision of the Authority—

• (a) where the Authority is satisfied that an entry in the Register has been obtained by fraud;

• (b) where a decision of a Court of competent jurisdiction or the operation of law requires the amendment of the Register;

• (c) where the Authority is satisfied that, for some other reason, it is necessary to amend the Register (for example, because an entry in it is incorrect).

12

The contents of the Register (including the entries referred to in article 59(3)(b)) must be available for inspection by the public on request at reasonable notice during the Authority’s working hours and at the request of any person the Authority must provide a written statement of any entry on the Register including any entry referred to in article 59(3)(b).

13

Where any person considers that an entry maintained in respect of them under article 59(3)(b) should be amended or deleted, they may apply to the Authority in writing requesting that the entry be amended or deleted.

14

The Authority must in any procedural guidelines which it produces provide details of its usual working hours.

15

“Banking day” means a day on which banks are generally open in the City of London excluding Saturdays and Sundays.

Signed

Mike O’Brien — Minister of State — Department of Energy and Climate Change — 24th March 2009

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order imposes an obligation (“the renewables obligation”) on all electricity suppliers, licensed under the Electricity Act 1989 (“the Act”) which supply electricity in England and Wales, to produce a certain number of renewables obligation certificates in respect of each megawatt hour of electricity that each supplies to customers in England and Wales during a specified period known as an obligation period (article 5). It also “bands” the different technologies that are used to generate electricity from renewable sources, meaning that the number of certificates that will be issued in respect of that electricity depends on the way in which that electricity has been generated. The renewables obligation is administered by the Gas and Electricity Markets Authority (“the Authority”) who issue renewable obligation certificates to renewable electricity generators on their renewable output. These certificates are sold to electricity suppliers with or without the associated renewable electricity.

Alternatively, instead of producing the required number of certificates in respect of all or part of their renewables obligation, a supplier is permitted to make a payment to the Authority (articles 43 and 44).

Part 1 sets out the interpretation provisions for the Order, and defines biomass and waste. In particular, article 3 specifies, as provided for in section 32M of the Act, that waste constitutes a renewable source if not more than 90% of it is, or is derived from, fossil fuel. It also sets out how the proportion of waste which is, or is derived from, fossil fuel is to be determined and includes specific provisions relating to municipal waste.

Article 4 defines biomass and also sets out the circumstances in which a fuel (not being biomass), may be treated as biomass by virtue of being used in a generating station with biomass. It also provides how the proportion of biomass which is composed of fossil fuel is to be determined.

Part 2 sets out how the renewables obligation is calculated and what a supplier needs to do to meet their obligation. In particular, articles 6 to 10 set out the calculations that the Secretary of State must undertake before the start of each obligation period (apart from the 2009/10 obligation period) to determine the total UK renewables obligation for that period.

Article 11 sets out the circumstances where each calculation is to be used to determine the total obligation for electricity suppliers in England and Wales.

Article 12 determines the number of renewables obligation certificates to be produced by individual electricity suppliers to discharge their renewables obligation. Paragraph (4) of this article requires the Secretary of State to publish by the 1st of October preceding an obligation period the number of renewables obligation certificates that a supplier will be required to produce in respect of each megawatt hour of electricity that it supplies to customers in England and Wales.

Article 13 provides for an electricity supplier to discharge its renewables obligation by the production to the Authority of a Northern Ireland certificate. This article also sets out the co-firing cap i.e. licensed suppliers are not able to meet more than a specified proportion of their obligation by presenting renewables obligation certificates issued in respect of electricity generated by a generating station fuelled or driven partly by renewable sources and partly by fossil fuel.

In Part 3, article 15 sets out those conditions that need to be met for electricity to be regarded as having been supplied to customers in Great Britain or Northern Ireland for the purposes of section 32B(3) to (6) of the Act. Article 16 sets out when electricity is to be regarded as being used in a permitted way for the purposes of section 32B(7) and (8) of the Act.

In Part 4, articles 17 to 23 set out circumstances in which ROCs are not to be issued.

In Part 5, articles 24 and 25 set out how the number of ROCs relating to a generating station’s renewable output is to be calculated. Article 26 makes specific modifications for qualifying combined heat and power generating stations.

In Part 6, articles 27 to 31 are the “banding provisions”, which govern the amount of electricity in respect of which each ROC is to be issued. Article 27 contains the general rule, which is that the amount of electricity in respect of which a ROC is to be issued depends upon the way in which the electricity was generated, and is set out in Part 2 of Schedule 2. There are special provisions governing ROCs issued to qualifying combined heat and power generating stations (article 28), microgenerators (article 29), generating stations which were accredited as at 11th July 2006 (article 30), and generating stations which were accredited or held preliminary accreditation as at 31st March 2009 (article 31).

Article 32 sets out conditions which must be satisfied before the “banding provisions” apply to certain generating stations in respect of which a statutory grant has been awarded. Article 33 provides for the Secretary of State to review the banding provisions at four yearly intervals, with the first review commencing in October 2010. A review may also occur at any other time if any of the circumstances set out in article 33(3) arise.

In Part 7, articles 34 to 40 provide for the issue of ROCs – that is to say, renewables obligation certificates issued under this Order – by the Authority. Article 41 provides for the revocation of ROCs in certain circumstances.

Where suppliers discharge their renewables obligation (in whole or in part) by making payments to the Authority, the payments are held in the buyout and late payment funds. Part 8 sets out how the buyout and late payment funds are to be handled. Articles 45 and 46 require the Authority to make payments from those funds into the consolidated fund and to the Northern Ireland Authority to pay for the costs of administering the renewables obligation. Once these payments have been made, the remainder of the money in the funds is paid to UK suppliers, who have discharged their renewables obligation (in whole or in part) by presenting renewables obligation certificates, in accordance with article 47. The exception to this occurs where £50,000 or less is all that is held in the late payment fund, in which case that amount will be retained by the Authority and will be paid out in the following obligation period (article 46).

Part 8 also contains “mutualisation” provisions (articles 48 to 52). These provisions deal with a situation where the amount held in the buyout and late payment funds is less than the amount that should be held in those funds. Such a situation would only occur where a licensed supplier failed to discharge its renewables obligation by presenting certificates and/or making payments as required by the Order.

Part 9 makes provision concerning information which is to be provided to the Authority (articles 53 and 54), which is to be provided to the Secretary of State (article 55), and which is to be exchanged with the Northern Ireland Authority (article 56). It also sets out functions to be discharged by the Authority, in addition to those it is required to discharge in order to administer the renewables obligation (article 57).

Article 58 provides for the preliminary accreditation and accreditation of generating stations. In order to be eligible to claim ROCs in respect of electricity generated from eligible renewable sources, a generating station must have obtained accreditation from the Authority.

Article 60 modifies the provisions of specific articles in this Order to enable a microgenerator to be able to claim ROCs on an annual rather than a monthly basis.

Article 61 revokes the Renewables Obligation Order 2006 (“the 2006 Order”) and the Renewables Obligation Order 2006 (Amendment) Order 2007. The provisions of the 2006 Order are saved in respect of all outstanding obligations or requirements imposed by it.

A full regulatory impact assessment of the effect that this Order will have on the costs of business and the voluntary sector is available from the Renewables Financial Incentives Team, Department of Energy and Climate Change, 1 Victoria Street, London SW1H 0ET and is annexed to the Explanatory Memorandum which is available alongside this Order on the OPSI website.

The 2006 Order revoked and re-enacted the Renewables Obligation Order 2005 (S.I. 2005/926) (“the 2005 Order”). The 2005 Order had revoked and re-enacted the Renewables Obligation Order 2002 (S.I. 2002/914) (“the 2002 Order”). The 2002 Order was modified by the Renewables Obligation Order 2004 (S.I. 2004/924). The 2002 Order gave effect to article 3.1 of the European Directive on the promotion of electricity produced from renewable energy sources in the internal market (Directive 2001/77/EC) (OJ L 283, 27.10.2001, p. 33). A transposition note setting out how the main elements of this Directive have been transposed into United Kingdom law is available from the Renewables Financial Incentives Team, Department of Energy and Climate Change at the above address. This Order does not raise any new transposition issues. Copies of the transposition note have been placed in the libraries of both Houses of Parliament.

Footnotes

[^f00001]: 1989 c.29, as substituted by section 37 of the Energy Act 2008 (c.32).

[^f00002]: ISBN 0580485350. Copies can be obtained from the British Standards Institution: www.bsi-global.com/en/.

[^f00003]: ISBN 0580495485. Copies can be obtained from the British Standards Institution: www.bsi-global.com/en/.

[^f00004]: ISBN 058049554X. Copies can be obtained from the British Standards Institution: www.bsi-global.com/en/.

[^f00005]: ISBN 9780580576546. Copies can be obtained from the British Standards Institution: www.bsi-global.com/en/.

[^f00006]: 1988 c.1. Section 839 was amended by section 74 of and Schedule 17, paragraph 20 to the Finance Act 1995 (c.4), by sections 89 and 178 of and Schedule 13, Part 2, paragraphs 7, 25 and 27(1) and Schedule 26, Part 3 to the Finance Act 2006 (c.25), by section 1027 of and Schedule 1, Part 1, paragraphs 1 and 223 to the Income Tax Act 2007 (c.3), and by regulations 47 and 100 of S.I. 2005/3229.

[^f00007]: ISBN 0580194825. Copies can be obtained from the British Standards Institution: www.bsi-global.com/en/.

[^f00008]: OJ L 377, 31.12.1991, p. 20.

[^f00009]: OJ L 168, 2.7.1994, p. 28.

[^f00010]: OJ L 182, 16.7.1999, p. 1.

[^f00011]: 2000 c.27; section 67(1)(c) was amended by the Energy Act 2008 (c.32), section 39.

[^f00012]: S.I. 2000/2727.

[^f00013]: S.S.I. 2005/549.

[^f00014]: S.I. 1994/3259.

[^f00015]: S.I. 1994/3275 (S. 190).

[^f00016]: S.I. 1997/248.

[^f00017]: S.I. 1997/799 (S. 76).

[^f00018]: S.I. 1998/2353.

[^f00019]: S.I. 1999/439 (S. 24).

[^f00020]: S.I. 2003/419 (N.I. 6); Articles 52 to 55F were substituted by the Energy (Amendment) Order (Northern Ireland) 2009 (S.R. (NI) 2009 No 35).

[^f00021]: 1964 c.29.

[^f00022]: See section 4(4), the definition of “distribute” (which contains the definition of distribution system) and “transmission system”. The definition of “distribute” was inserted by the Utilities Act 2000 (c.27), section 28(1) and (3)(a); the definition of “transmission system” was substituted by the Energy Act 2004 (c.20), section 135(1) and (4).

[^f00023]: 1990 c.43, as amended by section 120(1) of and paragraph 88(1) and (2) of Schedule 22 to the Environment Act 1995 (c.25).

[^f00024]: S.I. 1992/231 (N.I. 1).

[^f00025]: 2003 c.33. See sections 21 and 24 of that Act.

[^f00026]: S.R. (NI) 2007 No 104. Articles 2(1) and 16 were amended by the Renewables Obligation (Amendment) Order (N.I.) 2007 (S.R. (NI) 2007 No 440).

[^f00027]: 1964 c.29. This provision was amended by the Oil and Gas (Enterprise) Act 1982 (c.23), section 37 and Schedule 3, paragraph 1.

[^f00028]: 2004 c.20.

[^f00029]: S.I. 1992/231 (N.I. 1), Article 35 is prospectively repealed by S.I. 2003/419 (N.I. 6), but the relevant provision has not yet been commenced.

[^f00030]: Section 27A of the Act was inserted by section 59(1) of the Utilities Act 2000 (c.27).

[^f00031]: Section 6 of the Act was substituted by section 30 of the Utilities Act 2000 (c.27).

[^f00032]: Section 25 of the Act was amended by section 54(3) of, and paragraph 12 of Part IV of Schedule 10 to, the Competition Act 1998 (c.41), sections 3(2), 60 and 108 of, and paragraphs 24, 27 and 28 of Part II of Schedule 6 to, the Utilities Act 2000 (c.27), sections 25(8), 45(4), 52(2) and 63(1) of, and paragraph 2 of Schedule 2, paragraph 2 of Schedule 5 and paragraphs 7 and 9 of Schedule 7 to, the Consumers, Estate Agents and Redress Act 2007 (c.17), section 107(1) of, and paragraph 3 of Schedule 5 to, the Energy Act 2008 (c.32). Section 26 of the Act was amended by sections 3(2), 60(1) and 60(6) of the Utilities Act 2000. Section 27 of the Act was amended by section 3(2) of the Utilities Act 2000. Sections 27A to 27F of the Act were inserted by section 59(1) of the Utilities Act 2000. Section 28 of the Act was amended by sections 3(2), 59(2) and 108 of, and paragraphs 24 and 29 of Part II of Schedule 6 to, the Utilities Act 2000.

[^f00033]: S.I. 1992/231 (N.I. 1).

[^f00034]: 1990 c.8.

[^f00035]: S.I 2006/1004 amended by the Renewables Obligation Order 2006 (Amendment) Order 2007 (S.I. 2007/1078).

[^f00036]: S.I. 2007/1078.

[^f00037]: S.R. (NI) 2007 No 104. Articles 2(1) and 16 were amended by the Renewables Obligation (Amendment) Order (N.I.) 2007 (S.R. (NI) 2007 No 440).

[^f00038]: S.S.I. 2007/267.