The Renewables Obligation (Scotland) Amendment Order 2024

Jurisdiction: Scotland

Commencement: 1^st April 2024

Amends: The Renewables Obligation (Scotland) Order 2009

Mini Summary

Duties

This Order imposes a Renewables Obligation (RO) on all electricity suppliers that supply electricity in Scotland to supply to a specified amount of electricity that has been generated using renewable sources. Renewable sources include sources of energy such as wind, water, solar and biomass.

If the supplier would rather not generate the renewable electricty itself, it can buy Renewables Obligation Certificates (ROCs) (certificates awarded to generators of renewables electricity for every MWh of electricty they generate) from other suppliers, in effect demonstrating that renewable electricity has been generated on their befalf. Alternatively they can simply make payments to the Gas and Electricity Markets Authority to meet their obligation.

Part One brings together the definitions of waste as a renewable source and biomass.Waste constitutes a renewable source if not more than 90% of it is, or derived from fossil fuels.Biomass waste is a fuel where at least 90% of its energy content is derived from plant matter, animal matter, fungi or algae. The requirements for the use of municipal waste as a fuel have been simplified.

Part Two sets out how the renewables obligation is calculated and how suppliers can meet their obligation. The number of SROCs is established using calculations set out in articles 6 to 10. There are no numbers of obligations for electricity suppliers in Scotland as set out in Article 11.

Part Three sets out what has to be certified in a SROC, including what constitutes supply to a customer, or use under a permitted way. There is a new permitted way which is aimed at removing administrative burdens experienced by generators supplying over an unlicensed private transmission supply network.

Part Four sets out situations where SROCs should not be issued.

Part Five sets out how the amount of electricity attributable to eligible renewable sources is calculated. It is also simpler to claim ROCs for qualifying combined heat and power generation.

Part Six allows for generators of electricity from eligible renewable sources to receive a set number of SROCs for each MWh of electricity they generate. The number of SROCs issued, will depend upon the type of technology that is being used. There is also protection for the level of support for existing technologies which would otherwise be banded. Provisions have also been made, for regular reviews of the banding provisions at four year intervals with the first review occurring in October 2010.

Part Seven sets out the process for the issue or revocation of SROCs.

Part Eight deals with the stewardship of buyout and late payment funds. There are also regulations on how suppliers should pay into funds and how these will be distributed to suppliers.

Part Nine sets out the information required to be provided to the Authority, with new provisions relating to Biomass. It also requires a SROC register to be maintained by the Authority.