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The Regulator criticises the Renewables Obligation – REA responds
Submitted: 23 January 2007
Ofgem has criticised the Renewables Obligation (RO) for being expensive and questioned whether Government’s proposals to “band” it will work. The REA believes these are legitimate concerns.

“The RO has worked very well for onshore wind, biomass co-firing and landfill gas, but we’ll need a far wider range of technologies in the longer term. We need offshore wind, wave power, tidal energy, biomass, anaerobic digestion and solar. These are barely progressing under the current arrangements”, said Gaynor Hartnell, of the REA.

The Government has consulted on how the RO might be “banded” to make it work better for these technologies. The REA has contributed its views on how this approach could be best made to work [1], but has grave reservations about the wisdom of making such a change.

Ofgem is proposing an alternative based on long-term contracts.

“The problem is that the Government has not been receptive to alternative approaches" said Gaynor Hartnell. "Two years ago we made similar proposals on bringing forward a greater range of renewables, whilst not undermining the progress made by more commercially mature technologies, but they fell on deaf ears.”

“One thing is for sure, if we don’t implement sensible grid access arrangements and a better planning regime, we won’t make fast enough progress with renewables, whatever policy is in place.”

 Related Web Site(s)
Ofgem press release . .
Ofgem's response to the RO consultation . .

 Associated File(s)
REA submission to Financial Times
Response letter to Ofgem press release on RO
070123OfgemRO- REA letter.pdf Download Acrobat ReaderDownload Acrobat Reader 

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