Renewables Obligation (RO) Grace Periods

In 2010/11 the Government consulted on proposals for the transition from the Renewables Obligation (RO) under the Electricity Market Reform. In the White Paper Planning our electric future, the Government set out the intention to close the RO to new generating capacity from 31 March 2017. Further consultations on the RO transition arrangements were published by DECC on 17 July 2013 in respect of England & Wales and by the Scottish Government on 2 September 2013 in respect of Scotland.

Following further detailed analysis, and consideration of representations and consultation responses made to DECC from industry, this further consultation sets out more detailed proposals on grace periods for the Renewables Obligations in Great Britain, and the mechanism by which the closure of the RO and the grace periods will be implemented across Great Britain.

The consultation covers:

• The use of the power by the Secretary of State to close the Renewables Obligations in England, Wales and Scotland to new generating capacity;
• Proposals for the eligibility criteria and lengths that will apply to the grace periods to be offered at the point of RO closure to new generating capacity across Great Britain.

Subject to the responses received to this consultation, our aim is to implement the proposals set out within this document via a Renewables Obligation Closure Order 2014, to come into force in Spring 2014. The proposals set out in this document are subject to the Energy Bill, which is currently before Parliament. They are also subject to Parliamentary approval of the Order, and any State Aid clearances that may be required.

This consultation covers England, Scotland and Wales. Provisions for Northern Ireland will be consulted upon separately by Northern Ireland Executive.

Responses to the Consultation

DECC is seeking input from as wide a range of interested parties as possible and the consultation includes a series of broad questions to help shape contributions from interested parties. The Government Response, which we expect to publish towards the end of the year, will draw principally on evidence submitted during the 3 week period.