The RO is the main support mechanism for renewable electricity projects in the UK. Smaller scale generation is mainly supported through the Feed-In Tariff scheme (FITs) and further information about FITs is available here.

The RO came into effect in 2002 in England and Wales and in Scotland and in 2005 in Northern Ireland. It places an obligation on UK electricity suppliers to source an increasing proportion of electricity they supply to customers from renewable sources. For information on how the obligation level is set each year please see the Department of Energy and Climate Change website.

Renewables Obligation Certificates (ROCs) are green certificates issued by the Authority to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can then trade the ROCs with other parties, with the ROCs ultimately being used by suppliers to demonstrate that they have met their obligation.

On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy to revolutionise the way heat is generated and used. This is the first financial support scheme for renewable heat of its kind in the world.

Bioliquids
Biomass can exist in liquid form or be processed to produce a fluid known as a ‘bioliquid’ when used for heat and electricity, and a ‘biofuel’ when employed in transport. Bioliquids typically have a very high energy density and can either be burned directly to produce heat or blended with a mineral fuel component with the resulting fuel blend being burned.

Bioliquids will not be eligible for support from the outset of the RHI. We recognise there are valuable uses of bioliquids in renewable heat generation and combined heat and power, including those developed from wastes such as used cooking oil and those made from advanced technologies.

However, before we can support bioliquids in the RHI, it will be necessary to put in place a co-ordinated approach so that the supply of liquid feedstocks into the heat market does not unduly impact on other important uses, including energy and non-energy uses. An evaluation of the costs and benefits of the use of bioliquids in heat, electricity and transport is underway and this will inform the development of a co-ordinated approach to bioliquids.

In addition, we will need to ensure we meet our legal commitments under the Renewable Energy Directive16
Working through these complex issues will take time which means that we will not support bioliquids in 2011 but will consider them further for introduction in 2012.