As part of the 2006 Energy Review the Government looked at how the RO could be changed to encourage a larger contribution from emerging renewable technologies. At the same time the Government also carried out a review of Co-firing under the RO. Following this the Government announced changes to the RO which would provide differentiated support levels to different renewables technologies – known as banding - and give additional certainty on long-term Renewable Obligation Certificate prices.
On 9 October 2006 the Government published an initial consultation on proposals to band the Renewables Obligation. This consultation closed on 5 January 2007. The consultation was accompanied by papers looking at the sustainability and economics of co-firing:
This consultation also contained proposals for a small number of more limited and detailed changes to the Renewables Obligation legislation to be brought into force for 1 April 2007. This part of the consultation closed on 15 December 2006.
SI 2007 No 1078 – The Renewables Obligation Order 2006 (Amendment) Order 2007