Challenges to the Renewables Sector – Ofgem 2019 Renewables Obligation Annual Report

Blog Layout

Challenges to the Renewables Sector – Ofgem 2019 Renewables Obligation Annual Report

Andrew Riley • August 26, 2020

Ofgem Renewables Obligation Annual Report 2019

The Ofgem Renewables Obligations Annual Report for 2018-19 provides insights into the current state of licensed electricity providers and the future growth of the renewables sector. The report has uncovered some challenges in regards to supplier compliance with the scheme and its future growth:

 The highest number of Renewables Obligation Certificates (ROCs) were written in the scheme’s history last year. However the figure of 105.9million ROCs written was much lower than the total UK obligation of 127.62 million ROCs, indicating there is still room for growth (P. 1).

 Suppliers who are found to have not presented their ROCs are required to make payments into the late payment fund or the buy-out fund. This has resulted in £841.9 million being redistributed to eligible suppliers. This figure has increased from £604.1million in the previous year (P. 1).

 Twenty-one suppliers failed to comply with their RO obligations. As a result sixteen suppliers ceased trading and a robust enforcement strategy was deployed which involved issuing consultations on four final orders and the issue of two provisional orders (P. 1).

 The most common generator audit findings in 2018-19 were outstanding documents, minor application discrepancies, incorrect declared net capacity and commissioning date discrepancy (P. 49).

 The number of pathways to accreditation has been reduced throughout 2017-18 and 2018-19. This has resulted in fewer successful accreditations, only 11 accreditations were distributed in the year 2018-19 (P. 2).

More information at Renewables Obligation Annual Report 2018-19.

Link to report: https://www.ofgem.gov.uk/system/files/docs/2020/05/ro_annual_report_2018-19_v1.1.pdf

Newer Post >