DECC have published their consultation document on the banding
review for Renewables Obligation Certificates (ROCs).
The consultation appears soon after the Conservative Party
Conference, where there was a strong suggestion of, at best, a
division in the coalition camp – between Chris Huhne, on
the one side, and George Osborne and David Cameron, on the other
side – as regards ongoing support for renewables
investment.
The perception that the honeymoon period for renewables may soon
be over is perhaps given more context in the Levy Control
Framework, as announced in this year's budget, which sets an
overall cap on the amount that can be spent over the current
Comprehensive Spending Review (CSR) period – 2011-2015.
The government's emphasis is on supporting renewable
electricity generation cost effectively, and current modelling
suggests that, without a reduction in banding levels, the levy
envelope for the RO would be exceeded by around £130m and
£290m in 2013/14
