Renewable Obligation Certificates

Renewable Obligation Certificates (ROCS) is a plan thought of by the government to help increase how much renewable energy is both used and generated in the UK.

ROCS came into effect in 2002 and are only issued to those who use accredited renewable generating stations for the renewable electricity generated. The government places an obligation for all licensed suppliers of electricity to source a percentage of electricity supplied to customers from renewable energy sources, this percentage increases each year as the government is aiming to get 15% of all energy supplied from renewable sources for 2020, and then to cut CO2 emissions by 80% for 2050.

The way in which this is calculated is simple. For every MWh that is generated creates one ROC. Which means that one ROC is worth 1MWh (1000 kWh). When a ROC is created it is stored into OFGEM’s database which can then be sold on the open market. The price of a ROC can differ as some people are willing to pay more than others.

However, as an example to help clear things up. If we have a 2.2 MW turbine putting out 1MWh for 12 hours a day it may earn £30 per MWh and £67 per ROC, then if we do some calculations we would be getting around £438,000 for 365 days each year. It’s no wonder so many investment houses and banks are rushing to get a piece of the action thanks to the huge benefits it holds.

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