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Renewables obligation (RO) transition: fixed price certificate scheme (FPC Scheme)
Produced in partnership with Andreas Formosa of Clifford Chance
Practice notesRenewables obligation (RO) transition: fixed price certificate scheme (FPC Scheme)
Produced in partnership with Andreas Formosa of Clifford Chance
Practice notes
What is the fixed price certificate scheme?
Sections 32N–32Z2 of the Electricity Act 1989 (EA 1989) provide for the closure of the Renewables Obligation (RO) and for the transition of the RO scheme to a fixed price certificate scheme (FPC Scheme). This is to reduce the risk of volatile and increased prices of RO certificates (ROC) in the final ten years of the RO. For more information on the RO scheme and its closure, see Practice Notes: Renewables Obligation (RO) scheme—key features and The Renewables Obligation Closure and Grace Periods: a consolidated summary [Archived]. The government, in its 2011 energy White Paper and subsequent consultations, explained that the risk of increased prices and higher volatility in prices is due to the fact that, following the closure of the RO to new projects in 2017, there will be a closed and diminishing pool of capacity (as RO-accredited generators are decommissioned, or at least until they are no longer eligible to receive ROCs).
Design of the FPC Scheme
While EA 1989 provides
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Jurisdiction(s):
United Kingdom
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Q&As 1
Related legal acts:
Key definition:
Renewables Obligation definition
What does Renewables Obligation mean?
The renewables obligation subsidy scheme (RO scheme) was intended to support investment in renewable generation projects. On 31 March 2017 the RO scheme closed to most types of newly commissioned generating station/extensions to generating station, subject to certain grace periods.
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