Renewables obligation level calculations: 2024 to 2025
The level of the Renewables Obligation for 2024 to 2025, and the underpinning calculation methodology.
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The Renewables Obligation (RO) scheme places an annual obligation on UK electricity suppliers to present to Ofgem (the scheme’s administrator) a specified number of Renewables Obligation Certificates (ROCs) per megawatt hour of electricity supplied to their customers during each obligation period.
A provisional level of the obligation (in ROCs per megawatt hour) for the 2024 to 2025 obligation year was published on 27 September 2023. As required by the legislation in force at that time, it was based on an 85% exemption for Energy Intensive Industries (EIIs) from the indirect costs of the RO. However, the September note explained that the government was seeking to increase the EII exemption to 100%. The note forewarned that such an increase would require a revision to the level of the obligation for Great Britain, and set out what the revised level would be with a 100% EII exemption.
The necessary changes to legislation have now been made and a 100% exemption for EIIs comes into force with effect from 1 April 2024.
The revised note published on 26 March 2024 sets out the revised level of the obligation for Great Britain to take account of the 100% EII exemption. The revised level replaces the one previously announced in September, and will apply for the whole of the 2024 to 2025 obligation year.
If you have any questions, you can contact us at RO@energysecurity.gov.uk.
Last updated 26 March 2024 + show all updates
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Revising the level of the Renewables Obligation (RO) for Great Britain for 2024 to 2025 to take account of a 100% exemption from RO costs for energy intensive industries.
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First published.