delete AMOUNT OF THE RENEWABLES OBLIGATION
The Renewables Obligation Order 2006 establishes quotas requiring designated electricity suppliers in England and Wales to source a specified percentage of electricity from eligible renewable sources. Suppliers can meet obligations by producing ROC certificates, trading with other suppliers, or paying a 'buy-out price' (initially £33.24/MWh) to the Authority. The Order defines eligible renewable sources (biomass, hydro, wind, advanced conversion technologies), establishes accreditation requirements for generating stations, sets exclusion criteria (large hydro except post-2002, pre-1990 stations without renewal, fossil fuel co-firing beyond thresholds), and creates elaborate certification and compliance mechanisms.
This mandate distorts the energy market by politically selecting winners among renewable technologies rather than allowing price signals to guide resources. The complex compliance apparatus—including accreditation, ROC certification, CHPQA standards, and intricate fossil fuel/biomass blending rules—imposes substantial administrative costs that are passed to consumers. The cross-subsidy mechanism (buy-out payments funding renewable generators) constitutes corporate welfare. A carbon price would more efficiently internalize fossil fuel externalities without government picking technology winners or creating rent-seeking opportunities. The Order became increasingly obsolete as renewables achieved cost-competitiveness, and its technology-specific preferences distorted investment signals away from genuinely optimal solutions.