The new bandings for Renewables Obligations Certificates (ROCs) under the Renewables Obligation have been published by the Department of Energy and Climate Change (DECC) following a consultation last year.
Notably, the review sees a higher subsidiary for energy from waste with combined heat and power (CHP), gasification and pyrolysis technology than consulted upon, alongside new support for landfill sites and increased support for biomass.
However some AD operators could lose out following the decision to prevent new AD projects under five megawatts from claiming ROCs, subject to consultation.
Under the Renewables Obligation energy suppliers are required to purchase ROCs as part of their requirement to buy a growing proportion of electricity from renewable sources. The system is banded so that some renewable energy technologies receive more ROCs than others to encourage their development.
For example, at present those using energy-from waste with combined heat and power (EfW with CHP) receive one ROC per megawatt hour of electricity produced, whilst anaerobic digestion receives two ROCs per MWh.
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Table showing ROCs subsidy changes
| Renewable Electricity Technology |
Current support 2012-13 (ROCs per MWh) |
Level of support proposed in consultation from 2013/14 (ROCs per MWh) |
Level of support from 2013/14 (ROCs per MWh) |
|---|---|---|---|
| Advanced gasification and pyrolysis | 2 |
2 in 2013/14 and 2014/15; 1.9 in 2015/16; and 1.8 in 2016/17 |
2 in 2013/14 and 2014/15; 1.9 in 2015/16; and 1.8 in 2016/17 |
| Anaerobic digestion | 2 |
2 in 2013/14 and 2014/15; 1.9 in 2015/16; and 1.8 in 2016/17 |
2 in 2013/14 and 2014/15; 1.9 in 2015/16; and 1.8 in 2016/17 |
| Dedicated biomass | 1.5 | 1.5 until March 31 2016 then 1.4 from April 1 2016 | 1.5 until March 31 2016 then 1.4 from April 1 2016 |
| Energy from waste with CHP | 1 | 0.5 | 1 |
| Landfill gas | 0.25 | 0 |
0 for open sites; 0.2 for closed sites; 0.1 for new waste heat to power band at sites. |
| Standard gasification and pyrolysis | 1 | 0.5 |
2 in 2013/14 and 2014/15; 1.9 in 2015/16; and 1.8 in 2016/17 |
(Source: DECC. For full listings of ROCs support, including co-firing of biomass, click here.)
Key role
Commenting on the RO Banding Review, energy minister Edward Davey, said: I am pleased to publish the Government Response to the Renewables Obligation Banding Review consultation. The Renewables Obligation is vital in supporting the development of renewable energy, which creates job and investment opportunities in the UK as well as contributing to a more secure energy supply.
“The support were setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security.”
– Edward Davey
Renewable energy will create a multi-billion pound boom for the British economy, driving growth and supporting jobs across the country. The support were setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security.
ROCs
In the consultation on the banding review, which was launched in October 2011, DECC proposed to halve the subsidiary for gasification and pyrolysis, as well as EfW with CHP (see letsrecycle.com story) from one per MWh to 0.5 per MWh.
However, for EfW with CHP it has now revealed that the level of ROCs available will remain at one per MWh. DECC said that evidence submitted during the consultation demonstrated that this was necessary in order to see increased deployment of this technology.
Meanwhile the level of subsidiary for standard pyrolysis and gasification will increase from its current rate of one ROC per MWh to two in 2013/14. This will reduce to 1.9 in 2015/16 and then 1.8 in 2016/17. This level of ROCs will, as planned, also apply to advanced pyrolysis and gasification which currently receives two ROCs per MWh.
This should offer some relief to the renewable energy industry which has previously called for support from the government to help make these technologies successful (see letsrecycle.com story).
Landfill gas
While the level of subsidy available to open landfill sites will reduce as planned from 0.25 ROCs per MWh to zero, DECC has added new bands for closed sites and sites using waste heat to power.
Related Links
The document notes: The government believes that there is a case for continued support to improve methane collection and electricity generation at closed landfill sites, based on the additional costs for closed sites. However, this needs to be balanced with Arups original cost evidence that shows current landfill gas engines need no support and the current band of 0.25 ROCs/MWh.
Closed sites using landfill gas to create electricity will receive 0.2 ROCs per MWh and those using waste heat to power, whether closed or open, will receive 0.1 ROCs per MWh.
Elsewhere the support for anaerobic digestion sees little change with the government sticking to its plans laid out in the consultation. AD plant operators can currently claim two ROCs per MWh which will remain the same until March 2015 when it will be reduced to 1.9 ROCs in 2015/16 and then down to 1.8 ROCs in 2016/17.
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