Renewable energy policy database and support

Summary of support schemes

• Feed-in tariff. In Great Britain, eligible renewable energy plants with a capacity of up to 5 MW must generally undergo an accreditation process, which may differ according to plant size and energy source. Once this process is completed and the plant has been accredited, the electricity exported to the grid by the plant is bought by a FiT licensee, i.e. an electricity supplier, at rates fixed by the FTO 2012 and corrected yearly by the Gas and Electricity Markets Authority (Ofgem). This system only applies in Great Britain, i.e. Scotland, England and Wales. The Order is not applicable in Northern Ireland. With some exceptions, until 31 March 2017 plants between 50 kW and 5 MW are entitled to choose between the above-mentioned system and the Renewables Obligation.
• Contracts for Difference. A Contract for Difference (CfD) is a private law contract between a RES-E generator and the CfD Counterparty – Low Carbon Contracts Company (LCCC), wholly owned by the UK Government. The CfD is based on a difference between the market price and an agreed “strike price”. Where a “strike price” is higher than a market price, the CfD Counterparty must pay the RES-E generator the difference between the “strike price” and the market price. Where market price is higher than the “strike price”, RES-E generator must pay back the CfD Counterparty the difference between the market price and the “strike price”. An operator of eligible RES-E technology, willing to secure a Contract for Difference, has to take part in an allocation round. The CfD scheme is currently in place in Great Britain only. In Northern Ireland the CfD scheme shall be introduced in 2016. With some exceptions, until 31 March 2017, RES-E generators are able to choose between Renewables Obligation (RO) and CfD schemes. From April 2017 the CfD scheme will be the only support scheme for all new RES-E plants over 5MW. The first Allocation Round took place in October 2014 and the second Allocation Round of took place in April 2017.
• Tax regulation mechanism. From April 2013, Carbon Price Floor was introduced in Great Britain. The tax applies to fossil fuels used for electricity generation. Renewable electricity is exempt from paying this tax.