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Renewables Obligation meaning

/rɪˈnjuːəbəl/ /ɒblɪˈɡeɪʃ(ə)n/
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What does Renewables Obligation mean?
In practice, the Renewables Obligation is the UK scheme under which licensed electricity suppliers must source a proportion of their supply from renewable generation, evidenced by Renewables Obligation Certificates (ROCs). Accredited generators earn ROCs per MWh; suppliers comply by presenting ROCs or paying a statutory buy‑out price. The buy‑out fund is recycled to compliant suppliers, underpinning ROC value. Support levels are “banded” by technology. The regime is set out in secondary legislation (Renewables Obligation Orders) made under the Electricity Act 1989 in Great Britain, with a separate but aligned Northern Ireland Renewables Obligation (NIRO). The scheme closed to most new generating capacity and extensions on 31 March 2017, with technology‑specific early closures (notably onshore wind) and defined grace periods. It continues to operate for existing accredited stations for their remaining support life, with ROCs issuable up to 31 March 2037. The term is routinely used in PPAs, project finance and M&A due diligence to analyse accreditation status and dates, banding, sustainability and reporting compliance, ROC recycle assumptions and buy‑out price indexation. Usage is broadly consistent across England & Wales, Scotland and Northern Ireland (subject to separate Orders). It is not used in the Republic of Ireland, where REFIT/RESS apply and, in Great...
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View the related News about Renewables Obligation

NEWS
UK and EU environment, energy and ESG weekly update for lawyers: climate, permits, enforcement, waste, water and marine—consultations, guidance and legislation (week of 3 April 2025)

In this issue: Air emissions and climate change Energy for environmental lawyers Environmental enforcement and prosecutions Environmental permits and consents ESG and sustainability Hazardous substances and chemicals Key developments and materials Marine Nature, biodiversity and habitat conservation Waste Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change DESNZ releases provisional 2024 UK greenhouse gas emissions statistics The Department for Energy Security and Net Zero (DESNZ) has issued early estimates for the UK’s 2024 greenhouse gas output. Total emissions are put at 371 million tonnes of CO2 equivalent, down 4% on 2023 and 54% below 1990. The electricity supply sector recorded the sharpest fall (15%), reflecting greater electricity imports and higher renewable generation, which cut gas and coal use at power stations. Domestic transport continued to be the largest source, contributing 30% of all emissions in 2024. UK-based international aviation bunker emissions...

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NEWS
GB and EU energy law weekly: grid connection reforms, offshore wind CIB, RO 2025–26 rates, new permitting, green bond/chemicals updates and key 2025 milestones — 20 February 2025

In this issue: Electricity and gas market regulation and licensing Networks and network connections Renewable energy Energy disputes Air emissions, efficiency, and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Electricity and gas market regulation and licensing Electricity Code Modifications Information on all ongoing changes to the Connection and Use of System Code (CUSC), the Grid Code (GC), the System Owner -Transmission Owner Code (STC) and the Security and Quality Supply Standard (SQSS) is now brought together on NESO’s Modification Tracker. The tracker clarifies each modification’s intent, the stakeholders impacted, Panel views on prioritisation, and its current point in the review journey. For more information, see: Codes. Networks and network connections Ofgem launches consultation on TMO4+ connections reform package Ofgem has outlined its ‘minded to’ positions on the National Energy System Operator (NESO)’s TMO4+ grid connections reform package. These indicative...

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NEWS
UK and EU environmental law weekly update—20 February 2025: UK ETS allocation, energy permitting, ESG (SDR/SFDR/EuGB), habitats and land use, waste/EPR, water quality, and key disputes

In this issue: Air emissions and climate change Chemicals Energy for environmental lawyers Environmental disputes and proceedings ESG and sustainability Nature, biodiversity and habitat conservation Waste Waste producer responsibility regimes Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change Greenhouse Gas Emissions Trading Scheme (Amendment) (No 2) Order 2025 SI 2025/124: This instrument is introduced to revise one element of UK secondary legislation and two items of assimilated direct law concerning climate change. It separates the imminent 2026–30 allocation window into a single‑year allocation for the 2026 scheme year (the ‘2026 allocation period’) and a further four‑year allocation for the 2027–30 scheme years (the ‘2027–30 allocation period’). The measure is made under powers in the Climate Change Act 2008 (CCA 2008) in relation to assimilated law. It takes effect on 31 March 2025. See: LNB News 13/02/2025 9...

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View the related Practice Notes about Renewables Obligation

PRACTICE NOTES
Transition from Renewables Obligation to Contracts for Difference: Great Britain closure timetable, scheme choice and limited dual-support routes (archived)

ARCHIVED: This Practice Note has been archived and is not maintained. How are contracts for difference (CfD) and the renewables obligation (RO) connected? The renewables obligation (RO) is designed to stimulate investment in renewable generation. It achieves this by placing a duty on customer-facing electricity suppliers—who obtain electricity from generators, whether directly or indirectly—to procure an ever-increasing share of their wholesale supply from renewable sources. The Secretary of State (SoS) for Business, Energy and Industrial Strategy (BEIS) determines the proportion required each period. Suppliers prove compliance by submitting renewable obligation certificates (ROCs) to the Office of Gas and Electricity Markets (Ofgem). New ROCs are issued solely to accredited renewable generators, encouraging suppliers to purchase renewable output (together with separately priced ROCs) from such projects, thereby delivering a degree of financial support to those developments. For further details, see Practice Note: Renewables Obligation (RO)—accreditation of renewable electricity generators [Archived]. On 31 March 2017, the RO closed to most categories of new generation. The RO will continue to...

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PRACTICE NOTES
UK Renewable Transport Fuel Obligation: legal framework, obligations, RTFCs, ROS reporting, penalties, development fuels (RCFs/RFNBOs), and interaction with the Sustainable Aviation Fuel Mandate—updated to 2026

The RTFO The RTFO is one of the government’s principal policies to cut greenhouse gas (GHG) emissions from fuels delivered for use in: road vehicles non-road transport, covering: non-road mobile machinery (NRMM) inland waterway vessels that do not normally operate at sea tractors recreational craft that do not normally operate at sea alternatively powered trains that do not already fall within the definition of NRMM (eg hydrogen fuel cell-powered trains) alternatively powered non-road vehicles that do not already fall within the definition of NRMM aircraft maritime, but only where the fuel used is a renewable fuel of non-biological origin (RFNBO) The RTFO represents one of several government measures that support the UK’s broader renewables and carbon reduction ambitions, including targets under the Climate Change Act 2008 (CCA 2008). It was introduced to comply with the EU Renewable Energy Directive 2009/28/EC (RED) and via secondary legislation...

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PRACTICE NOTES
Archived 2017 Energy Legislation and Regulation Tracker: England and Wales and the European Union

ARCHIVED This Practice Note is archived and no longer maintained. This Energy legislation tracker presents key forthcoming legislation of interest to Energy lawyers from 1 January 2017. The tracker is divided into the following jurisdictions: England and Wales European Union Entries appear in reverse chronological order. Items applying solely to Wales are flagged on the tracker. England and Wales Ionising Radiations Regulations 2017 (SI 2017/1075) Key date: 1 January 2018 Status: Comes into force; In force Topics: Nuclear licensing and regulation These Regulations establish a framework to ensure occupational exposure to ionising radiation is kept as low as reasonably practicable. They transpose the occupational elements of Directive 2013/59/Euratom, which sets basic safety standards for protection against the dangers arising from ionising radiations. The Ionising Radiations Regulations 1999 are revoked. See: the occupational elements of Directive 2013/59/Euratom are transposed;...

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