About the RO

The Renewables Obligation (RO) is one of the main support mechanisms for large-scale renewable electricity projects in the UK. Smaller scale generation is mainly supported through the Feed-In Tariffs (FIT scheme).

The RO came into effect in 2002 in England and Wales, and Scotland, followed by Northern Ireland in 2005. It places an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources.

The RO will close to all new generating capacity on 31 March 2017. There are also a number of early closures which are in force for specific technologies. Generators who are eligible to apply for a grace period can gain entry to the RO after these closures for a specified amount of time. More information on the 2017 closure and early closures is on the RO closure page.

Renewables Obligation Certificates (ROCs)

ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligation.

Where suppliers do not present a sufficient number of ROCs to meet their obligation in the reporting period (one year), they must pay an equivalent amount into a buy-out fund. The administration cost of the scheme is recovered from the fund and the rest is distributed back to suppliers in proportion to the number of ROCs they produced in meeting their individual obligation. For more information on ROCs, see Applying for the RO.

Annual obligation levels

For information on how the obligation level is set each year, please visit the DECC website.

Ofgem's role

The RO scheme policy is set by the Department for Business, Energy and Industrial Strategy (BEIS) and, in Northern Ireland, the Department for the Economy (DfE), but the scheme is administered by Ofgem.

We assess and, where appropriate, accredit RO applications that have been made to us. Assessments are made based on the evidence submitted with the application and the circumstances specific to the generating station.

Applicants must meet the eligibility criteria to be granted accreditation under the RO. It is not our role to interpret legislation on your behalf; we encourage you to seek legal and technical advice to help understand how the legislation applies to you.

We are unable to comment on future policy amendments or on speculative applications and scenarios.

Need help?

If you still have questions, but can't find the answer on our website please contact our Renewables team:

Tel: 020 7901 7310

Email: renewable@ofgem.gov.uk

Publications and updates

  • Published: 16th Feb 2015
  • Reports and plans
  • 1 Associated documents
The Renewables Obligation annual report provides an overview of scheme activated between 1 April 2013 and 31 March 2014.

  • Published: 12th Feb 2015
  • Guidance
  • 0 Associated documents
To inform our stakeholders and suppliers about the value of the Renewables Obligation (RO) buy-out price and mutualisation ceiling applicable for the 2015-16 RO year.

  • Published: 28th Jan 2015
  • Closed: 25th Mar 2015
  • Consultations and responses
  • 2 Associated documents
This is our consultation and response which details how we will administer the closure of the RO to large-scale solar PV and the associated grace periods.

  • Published: 19th Nov 2014
  • Charts and data, Open letters and correspondence
  • 0 Associated documents
We have just redistributed the 2013-14 RO late payment fund, paying a total of £6,171,656 to suppliers who presented Renewables Obligation Certificates (ROCs) this year.

  • Published: 17th Oct 2014
  • Charts and data, Open letters and correspondence
  • 0 Associated documents
This week we have redistributed the Renewables Obligation (RO) buy-out fund for 2013/14.

  • Published: 10th Sep 2014
  • Charts and data, Guidance, Open letters and correspondence
  • 0 Associated documents
For 2013-14 there have been 60,757,250 Renewables Obligation Certificates (ROCs) presented to us by suppliers towards the total UK obligation of 61,858,174 ROCs.

  • Published: 9th Sep 2014
  • Guidance
  • 0 Associated documents
This guidance document is for operators of generating stations in England, Wales and Scotland using offshore wind, advanced conversion technologies (ACT) (standard and advanced gasification and pyrolysis) and dedicated biomass with CHP.

  • Published: 2nd Sep 2014
  • Charts and data, Guidance
  • 0 Associated documents
Total obligations for England & Wales, Scotland and Northern Ireland for the 2013-14 compliance period.

  • Published: 1st Sep 2014
  • Open letters and correspondence
  • 1 Associated documents
This letter sets out the proposed administration costs of the Renewables Obligation for 2014-15. We welcome comment by the end of 29 September 2014.

  • Published: 28th Feb 2014
  • Reports and plans
  • 2 Associated documents
The Renewables Obligation Annual Report gives an overview of scheme activity during the period 1 April 2012 to 31 March 2013.