Renewables obligation
The Renewables Obligation Scotland (ROS) scheme was introduced in 2002 with the aim of incentivising and supporting the growth of renewable generation capacity in Scotland. The ROS has been successful in this aim and will continue to support accredited generators, despite closing to all new generating capacity on 31 March 2017. The scheme is set to end entirely in 2037.
The Contracts for Difference (CfD) scheme is now the UK Government’s main mechanism for supporting low-carbon electricity generation across Great Britain.
Working in tandem with similar legislation in other parts of the UK, the ROS obliges electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources. The scheme operates through the issuing of Renewable Obligation Certificates (ROCs, or SROCs in Scotland) to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties and can be acquired by suppliers to demonstrate that they have met their obligation.
Alternatively, instead of producing these certificates, suppliers may choose to make a payment to Ofgem, the body which administers the ROS on behalf of the Scottish Ministers. The funds collected are then largely redistributed to suppliers in proportion to the number of ROCs they have presented, in the process stimulating demand for renewable electricity.
The Renewables Obligation (Scotland) Order 2009 (as amended) requires the Scottish Ministers to announce the level of the obligation six months before the start of an obligation period. The obligation level refers to the number of SROCs that suppliers serving customers in Scotland are obliged to present per MWh (megawatt hour) of electricity they supply.
Renewables obligation 2025 to 2026
In accordance with article 12(4), the Scottish Ministers confirm that the obligation level for suppliers to customers in Scotland for the obligation period 2025 to 2026 will be 0.493 ROCs/MWh. This will be in effect from 1 April 2025 to 31 March 2026.
Read more about the renewables obligation level calculations on the gov.uk website.
Renewables obligation 2024 to 2025
The Renewables Obligation (Scotland) Amendment Order 2024 came into force on 22 March 2024. This instrument allows Scottish Ministers to amend the 2024/25 ROS obligation level, before the beginning of the obligation year on 01 April 2024.
In accordance with Article 12C introduced by the amendment, and to ensure the obligation level aligns with the UK Government’s new Energy Intensive Industry (EII) exemption level which will be introduced on 01 April, Scottish Ministers are revising the 2024 to 2025 obligation level to 0.491 ROCs per MWh.
This is an increase from the obligation previously set in September 2023, which was 0.487 ROCs per MWh.
Read more on gov.uk: Revising the level of the Renewables Obligation for Great Britain for 2024 to 2025 to implement an increased exemption for energy intensive industries (published 26 March 2024)
Renewables obligation 2023 to 2024
In accordance with article 12(4), the Scottish Ministers confirm that the obligation level for supplies to customers in Scotland for the obligation period 2023 to 2024 will be 0.469 ROCs per MWh. This will be in effect from 1 April 2023 to 31 March 2024.
Read more about calculating the level of the Renewables Obligation for 2023 to 2024 on gov.uk.
Renewables obligation 2022 to 2023
In accordance with article 12(4), the Scottish Ministers confirm that the obligation level for supplies to customers in Scotland for the obligation period 2022 to 2023 will be 0.492 ROCs per MWh. This will be in effect from 1 April 2022 to 31 March 2023.
Read more: renewables obligation level calculations: 2022 to 2023.
Amendment Order 2023
Between 11 November 2021 and 23 December 2021,we held a public consultation on proposals to change the mutualisation threshold set in the Renewables Obligation (Scotland) Order 2009. These proposals will be enacted from the beginning of the 2023/2024 obligation year on 1 April 2023, with the mutualisation threshold set at 0.1% of UK scheme costs rather than a fixed level. We published the notice of intent to proceed with this option on our consultation page on 29 September 2022.
These changes will mean that the threshold value will be proportionate to the overall costs of the scheme across the UK and will therefore vary from year to year. This amendment brings the Renewables Obligation (Scotland) Order 2009 in line with the legislation in England and Wales and helps to ensure that the scheme balances mutualisation risk between suppliers and generators more fairly.
Ofgem are required to calculate and publish the mutualisation threshold every year. You can see the threshold for the 2023/24 obligation page.
The Scottish Statutory Instrument (SSI) making this amendment was laid before the Scottish Parliament on 26 January 2023 and came into force on 31 March 2023.
Renewables obligation archive
A record of the level from previous years can be found in the gov.scot renewables obligation archive.
Information on the ROS in years prior to 2018 to 2019 can be found in the renewables obligation archive.