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ARTICLE · 11 JUNE 2007

Renewable Obligation To Target Emerging Technologies

CMS Cameron McKenna Nabarro Olswang
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While the level of the Renewables Obligation (RO) is set to increase to 15.4% by 2015, the Energy White Paper published on Wednesday 23rd May estimates that in its current form the RO will deliver only 11.4% of that.

United KingdomEnergy and Natural Resources
Munir Hassan
Munir Hassan
Nicholas Molho
Nicholas Molho

While the level of the Renewables Obligation (RO) is set to increase to 15.4% by 2015, the Energy White Paper published on Wednesday 23rd May estimates that in its current form the RO will deliver only 11.4% of that. A consultation document on the detailed implementation of the government's proposals for the RO was published alongside the Energy White Paper, and responses are required by 6 September 2007.

The principal impact of the proposals in the RO Consultation Paper would be to band the RO so that it works differently for different types of renewable technologies, allowing more precise targeting of the benefit. In addition, a so-called "guaranteed headroom" would be provided for the RO so that if, in an optimistic scenario, renewable capacity exceeds the obligation level, the RO can be increased in order to seek to maintain the value of RO Certificates (ROCs).

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