The Renewables Obligation (Amendment) Order 2018

JurisdictionUK Non-devolved
CitationSI 2018/896
Year2018

2018 No. 896

Electricity, England And Wales

The Renewables Obligation (Amendment) Order 2018

Made 19th July 2018

Coming into force in accordance with article 1(1)

The Secretary of State, in exercise of the powers conferred by sections 32, 32A, 32B, 32C, 32D, 32J and 32K of the Electricity Act 19891, makes the following Order.

The Secretary of State has consulted the Gas and Electricity Markets Authority; (in relation to the amendments made by articles 4 and 5) the National Consumer Council2; (in relation to all other amendments) the National Association of Citizens Advice Bureaux and the Scottish Association of Citizens Advice Bureaux; the electricity suppliers to whom this Order applies; and such generators of electricity from renewable sources and other persons as the Secretary of State considered appropriate in accordance with section 32L(1) of the Electricity Act 1989.

In exercising the power to make provision under section 32D(1) of the Electricity Act 1989, the Secretary of State has had regard to the matters specified in section 32D(4).

In accordance with section 32L(2) of the Electricity Act 1989, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

S-1 Citation, commencement and extent

Citation, commencement and extent

1.—(1) This Order may be cited as the Renewables Obligation (Amendment) Order 2018 and comes into force on the day after the day on which it is made.

(2) This Order extends to England and Wales only.

S-2 Amendment of the Renewables Obligation Order 2015

Amendment of the Renewables Obligation Order 2015

2. The Renewables Obligation Order 20153is amended in accordance with articles 3 to 6.

S-3 Article 28 amended (ROCs to be issued by the Authority in respect of a generating station’s RO eligible renewable output)

Article 28 amended (ROCs to be issued by the Authority in respect of a generating station’s RO eligible renewable output)

3.—(1) Article 28 is amended as follows.

(2) In paragraph (1), for “paragraphs (3) and (5)” substitute “paragraphs (2) and (5)”.

(3) In paragraph (3), for “paragraph (3)” substitute “paragraph (2)”.

(4) After paragraph (6) insert—

S-7

“7 This article is subject to Schedule 6.”.

S-4 Article 35 amended (electricity generated by qualifying CHP stations)

Article 35 amended (electricity generated by qualifying CHP stations)

4.—(1) Article 35 is amended as follows.

(2) After paragraph (3) insert—

S-3A

“3A But paragraph (3) does not apply in the case of relevant electricity generated using pre-2013 capacity by a relevant qualifying CHP station unless a declaration has been made in accordance with paragraph (7) in respect of the pre-2013 capacity of the station.

S-3B

3B In paragraph (3A), “relevant qualifying CHP station” means a qualifying CHP station that—

(a) was accredited on or before 31st March 2013; and

(b) became a qualifying CHP station for the first time on or after the date on which the Renewables Obligation (Amendment) Order 2018 comes into force.”.

(3) In paragraph (7)—

(a)

(a) in sub-paragraph (b) after “in respect of the” insert “pre-2013 capacity,”;

(b)

(b) after sub-paragraph (b) insert—

“(ba)

“(ba) in the case of a declaration made in respect of the pre-2013 capacity of the station, it confirms that—

(i) pre-2013 capacity forms part of the total installed capacity of the station, and

(ii) support has not been given under any relevant scheme for heat produced by the use of that generating capacity;”.

S-5 Schedule 2 amended (greenhouse gas criteria for solid and gaseous biomass)

Schedule 2 amended (greenhouse gas criteria for solid and gaseous biomass)

5.—(1) Schedule 2 is amended as follows.

(2) In paragraph 1 (interpretation), in paragraph (b) of the definition of “post-2013 dedicated biomass station” after ““dedicated biomass”” insert “(including “dedicated biomass with CHP”)”.

S-6 New Schedule 6 inserted

New Schedule 6 inserted

6. After Schedule 5 insert—

SCHEDULE 6

Article 28

Annual ROC cap applicable to electricity generated by certain fuelled generating capacity

1

Interpretation

1 In this Schedule (including the modifications to this Order set out in paragraphs 8 to 18)—

“2018/19 obligation period” means the obligation period starting on 1st April 2018;

“capped combustion unit” means a combustion unit of a relevant fossil fuel station other than any of the following—

(a) an exempt combustion unit;

(b) a combustion unit consisting entirely of generating capacity referred to in article 45(4)(a);

(c) a combustion unit referred to in article 45(4)(d) or (e);

“capped generating station” means a relevant fossil fuel station that includes at least one capped combustion unit and no exempt combustion units;

“commencement day” means the day on which the Renewables Obligation (Amendment) Order 2018 comes into force;

“exempt combustion unit” is to be construed in accordance with paragraph 2;

“mixed generating station” means a relevant fossil fuel station that includes at least one capped combustion unit and at least one exempt combustion unit;

“qualification day” means—

(a) in the 2018/19 obligation period, the later of 1st September 2018 and commencement day;

(b) in any subsequent obligation period, 1st September;

“relevant day” means the first day of the second month after the month in which the Renewables Obligation (Amendment) Order 2018 comes into force;

“relevant electricity” means—

(a) electricity to which article 36 applies;

(b) electricity generated in any of the ways described in Schedule 5 as—

(i) “co-firing of regular bioliquid” (including “co-firing of regular bioliquid with CHP”);

(ii) “high-range co-firing” (including “high-range co-firing with CHP”);

(iii) “low-range co-firing” (including “low-range co-firing with CHP”);

(iv) “mid-range co-firing” (including “mid-range co-firing with CHP”);

(v) “station conversion” (including “station conversion with CHP”); or

(vi) “unit conversion” (including “unit conversion with CHP”);

“relevant fossil fuel station” has the meaning given in Schedule 5, but does not include—

(a) a generating station in relation to which ROCs have been issued in respect of electricity—

(i) generated before the date on which the generating station became a “relevant fossil fuel station” (as defined in Schedule 5); and

(ii) described as “dedicated biomass” (including “dedicated biomass with CHP”) in Schedule 2 to the Renewables Obligation Order 2009 or Schedule 5; or

(b) a microgenerator.

2

Meaning of “exempt combustion unit”

2.—(1) Subject to sub-paragraphs (2) and (3), a combustion unit of a relevant fossil fuel station is an “exempt combustion unit” for the purposes of this Schedule if it is a combustion unit in relation to which ROCs were issued in respect of electricity—

(a)

(a) generated before 12th December 2014; and

(b)

(b) described in Schedule 2 to the Renewables Obligation Order 2009 as “unit conversion” (including “unit conversion with CHP”) or “station conversion” (including “station conversion with CHP”).

(2) The following are not “exempt combustion units”—

(a)

(a) a combustion unit consisting entirely of generating capacity referred to in article 45(4)(a);

(b)

(b) a combustion unit referred to in article 45(4)(d) or (e).

(3) A combustion unit referred to in sub-paragraph (1) ceases to be an “exempt combustion unit” if, during any 6 month period since commencement day, it generates electricity from fossil fuel, where the energy content of the fossil fuel is more than 15% of the energy content of all of the energy sources used by the unit to generate electricity during that 6 month period.

(4) In sub-paragraph (3), “fossil fuel” does not include fossil fuel for permitted ancillary purposes.

3

Capped generating stations in the 2018/19 obligation period

3.—(1) This paragraph applies to a generating station that is a capped generating station on commencement day.

(2) No more than A x 125,000 ROCs may be issued in respect of relevant electricity generated by the generating station during the period starting on the relevant day and ending on 31st March 2019.

(3) In sub-paragraph (2), A is the number of capped combustion units included in the generating station on commencement day.

4

Capped generating stations in the 2019/20 obligation period and subsequent obligation periods

4.—(1) This paragraph applies to a generating station that is a capped generating station on qualification day in any obligation period (the “previous obligation period”) beginning with the 2018/19 obligation period.

(2) No more than A x 125,000 ROCs may be issued in respect of relevant electricity generated by the generating station during the next obligation period after the previous obligation period.

(3) In sub-paragraph (2), A is the number of capped combustion units included in the generating station on qualification day in the previous obligation period.

5

Mixed generating stations in the 2018/19 obligation period

5.—(1) This paragraph applies to a generating station that is a mixed generating station on commencement day.

(2) By the day one month after commencement day, the Secretary of State must publish an estimate (the “exempt combustion unit estimate”) of the number of ROCs which are likely to be issued in respect of relevant electricity generated by the generating station’s relevant exempt combustion units during the 2018/19 obligation period.

(3) In making the estimate referred to in sub-paragraph (2), the Secretary of State must rely on the same information used to calculate the figure referred to in article 11(2) in respect of the 2018/19 obligation period.

(4) Sub-paragraph (5) applies where the number of ROCs issued in respect of relevant electricity generated by the generating station during the 2018/19 obligation period has reached the mixed generating station estimate.

(5) Where the number of ROCs issued in respect of relevant electricity generated by the generating station’s relevant capped combustion units during the relevant period exceeds...

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