|Policy Type:||Regulatory Instruments>Codes and standards, Economic Instruments>Fiscal/financial incentives, Regulatory Instruments>Other mandatory requirements, Regulatory Instruments>Monitoring, Regulatory Instruments>Obligation schemes|
|Policy Target:||Energy Sector>Electricity Generation>Renewable|
|Agency:||Department of Energy and Climate Change (DECC)|
|Legal References:||Utilities Act 2000|
As part of the UKs Climate Change Programme, the Government announced in 2000 that UK electricity suppliers will be required to supply a specified proportion of their electricity from eligible renewable energy sources. The Government is expecting to hold a statutory consultation shortly on the exact detail of the Obligation, which will be implemented through secondary legislation and will last for 25 years. Should the cost of supplying renewable electricity become prohibitively high, suppliers can choose the buy out option as an alternative to supplying what would be the more expensive renewable - generated electricity. It is proposed that the buy out price will be set at a level of 3.0p/kWh. It is proposed that buy out receipts will be recycled to suppliers in proportion to the extent that they meet with the targets set out in the Obligation, as evidenced by the redemption of Renewables Obligation Certificates.
|This record is superseded by:||Renewables Obligation (RO)|
|This record supersedes:||10% Renewable Energy Target - Green Certificates|
Last modified: Thu, 14 Mar 2013 15:44:57 CET