Government consults on Renewables Obligation change

A consultation has been launched on proposals to introduce fixed price certificates to the Renewables Obligation scheme.

The Government said it sees merit in replacing the current tradable certificate arrangements as a means of ensuring the long-term stability and resilience of the mechanism.

“In particular, Fixed Price Certificates could offer a credible mechanism to manage the risk of increasing price volatility as the scheme winds down,” it said.

However, the Government said it also recognises widespread stakeholder sentiment that volatility is now more likely to emerge in the early–mid 2030s rather than in the late 2020s.

The consultation asks for input on key aspects of the proposed design, including how certificates would be priced and paid and how supplier levies would be set and collected.