Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Renewables Obligation definition

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...

RO accreditation: eligibility and Ofgem process, preliminary vs full accreditation, commissioning standards, generating station scope, ROC issuance, and scheme closure with grace periods (archived)

Published by a LexisNexis Energy expert

Practice notes

ARCHIVED: This Practice Note has been archived and is not maintained

Why do generators needed to be accredited?

The Renewables Obligation (RO) channels investment into renewable generation by requiring customer-facing electricity suppliers—who buy electricity directly or indirectly from generators—to procure a rising share of their wholesale supply from renewable sources. The level required is determined by the Secretary of State (SoS) for Business, Energy and Industrial Strategy (BEIS). Suppliers prove their renewable purchases by submitting Renewable Obligation Certificates (ROCs) to the Office of Gas and Electricity Markets (Ofgem). Electricity suppliers must evidence their acquisitions of renewable power through the lodgement of ROCs with Ofgem. Fresh ROCs are granted only to accredited renewable generators, encouraging suppliers to acquire electricity (and the separately priced, accompanying ROCs) from renewable projects, thereby affording those projects a measure of financial support. In turn, projects benefit from support via income from both electricity and separately priced ROCs. The RO is principally set out in the Renewables Obligation Order 2015, SI 2015/1947 (RO Order 2015), as amended by the Renewables Obligation (Amendment) (EU Exit) Regulations 2019, SI 2019/35. On 31 March 2017, the RO closed to new generation...

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Matthew Collinson

Matt has specialised in energy and infrastructure projects since 2006, including in City practice and as an industry consultant. He has spent more than half his career as a general counsel in regulated energy supply and network businesses, and has written extensively on regulation of the gas and electricity sectors....

Web page updated on 21/05/2026

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