16 December 2010: Government response to the Statutory consultation on Renewables Obligation Order 2011
The Government response to the consultation on changes to the RO (which would come into effect on 1st April 2011) has now been published. Full details are available on the Statutory Consultation on the Renewables Obligation Order 2011 (ROO 2011) web page.
8 December 2010: Renewables Obligation Banding Review 2013 – acceleration of review timetable
Energy Minister Charles Hendry announced today that the timetable for the 2013 RO Banding Review is being speeded up. The original timetable set out in the RO Banding Review Process document below indicated that the Government would launch a statutory consultation on new banding proposals in Spring 2012 and announce its decision on banding levels by Autumn 2012. DECC now intends to consult on new banding proposals in Summer 2011 and confirm the new bands by Autumn 2011, one full year ahead of schedule. The new bands will still come into effect as planned on 1 April 2013 (1 April 2014 for offshore wind), subject to Parliamentary and State Aids approval.
Under the previously announced timetable, investors would not have known for certain what support they could have expected to receive until Autumn 2012 at the earliest. The Government was concerned that this might delay early investment in certain technologies and hinder the UK’s ability to meet our EU target for 15% of energy to come from renewable sources by 2020. We believe that the accelerated timetable for the banding review will give investors and developers greater certainty and confidence to help bring forward the scale of renewables developments needed to deliver the target and other important energy and climate change objectives.
The current review started in October this year with the appointment of Arup and Ernst & Young to review the market costs and the potential of eligible renewable electricity technologies to provide the economic and technical evidence to underpin the revision of the RO bands. The report of this first phase of work is due to be delivered to DECC at the end of February 2011. We are today also inviting expressions of interest from qualified companies to undertake a project to model the impacts of different banding scenarios. This phase of the work will draw on the results of the Arup and Ernst & Young work and inform the development of DECC’s consultation proposals, which we aim to publish in July 2011.
November 2010: Stakeholder information gathering exercise
As mentioned below, DECC has recently launched the scheduled RO banding review. We have commissioned independent consultants Arup and Ernst & Young to assess the deployment potential and generation costs of renewable electricity technologies.
If you would like to contribute to the Arup and Ernst & Young stakeholder information gathering exercise, have not already been contacted directly, and have a strong interest/detailed knowledge in this area (e.g. generation costs for a prospective project in a particular technology), please contact the banding review team at the following address: Kieran.Power@decc.gsi.gov.uk by Friday 10th December. In your email, please describe your interests in the issue and outline the nature of the information that you wish to contribute.
If you make contact after this time, we will endeavor to use your input, but we might not be able to do so.
October 2010: Result of competitive tender
DECC are pleased to announce that, following competitive tender, we have selected ARUP to take forward the renewable technology costs project that will inform the 2013 Banding Review.
The project will look at the costs and revenues of eligible technologies to help determine the levels of support these might require going forward.
ARUP will be in touch with stakeholders shortly to discuss costs. We thank you in advance for your cooperation.