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Please note that both Part A and Part B of this consultation are now closed. The responses below set out our decisions in response to the RO and to REGOs.
Changes to REGOs came into force on 5 December 2010 as required by the Renewable Energy Directive (RED).
Changes to the RO will be introduced via the Renewables Obligation Order 2011. Subject to obtaining State Aid approval from the European Commission and subject to Parliamentary process, these changes will come into effect on 1 April 2011.
Background to the consultation on the ROO 2011 and changes to REGOs
The Renewables Obligation (RO) is currently the main financial support scheme for renewable electricity in the UK. In order to ensure the RO stimulates deployment of new renewable generation to the extent needed to meet our 2020 target for renewable energy, DECC plan to make certain changes to the RO by means of the next Renewables Obligation Order (ROO) - which will come into effect on 1 April 2011.
Part A of the consultation document deals with these changes. In summary, these are:
- introduction of phased support for offshore wind projects, allowing developers to register groups of turbines in phases
- introduction of mandatory sustainability standards for biomass. There would be a transition period of mandatory reporting against the criteria from April 2011, with eligibility for ROCs from April 201
- introduction of sustainability criteria for bioliquids in line with the mandatory requirements introduced by the RED
Subject to the responses received to this consultation, we aim to introduce these changes via the Renewables Obligation Order 2011 - which would be implemented on 1 April 2011. The changes will be contingent on obtaining State Aid approval from the European Commission and subject to Parliamentary process.
This consultation document is also being used to issue calls for evidence on:
- whether additional RO support should be extended to stations using refurbished parts or replacing components
- how to support Combined Heat and Power (CHP) stations in light of any future policies the Government may introduce to support renewable heat (responses to the Renewable Heat Incentive (RHI) consultation are still being considered and government will set out detailed options on how it proposes to take forward action on renewable heat through the Spending Review. However, to meet the legislative timetable to make changes to the RO we need to consult ahead of deciding how to take forward action on renewable heat)
- whether there is a need to adjust the size of the mutualisation cap and trigger that exists to protect ROC values in event of a shortfall in the buyout fund
The evidence received will feed into the scheduled banding review of RO support levels (due to begin in October 2010) and help inform if further changes to the legislation are necessary.
Part B of this document, consulted on the implementation of various changes to Renewable Energy Guarantees Of Origin (REGOs). These changes are required under the Renewable Energy Directive to be implemented by 5 December 2010. The Government response below sets out our decisions in relation to REGOs.