What is the Renewable Obligation (RO)?

The Renewable Obligation (RO) is a financial support incentive for large-scale renewable energy projects in the UK and came into effect in England, Wales and Scotland in 2002 and in Northern Ireland in 2005. The RO places an obligation on UK electricity suppliers to source an increasing proportion of their electricity from renewable generation sources. On an electricity bill, RO charges comprise of the Obligation level charge and the Buy-out price with the costs based on the energy used. The RO closed to all new generating capacity on 31st March 2017. Renewable Obligation Certificates (ROCs) are certified issued to accredited renewable generators which suppliers use to demonstrate that they have met their energy supply obligation.