Commentary
Renewables technologies working for SME’s
Michael Doran, director, Action Renewables talks to Business First about how local business can maximise the benefits that can be achieved from Renewable Obligation Certificates
T
o date over 500 business in Northern Ireland are embracing renewable technologies to generate electricity, they are experiencing extensive business benefits including; lower energy costs and a sustained supply. But organisations in Northern Ireland are not utilising the maximum benefits that can be achieved from Renewable Obligation Certificates (ROCʼs). A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. One ROC is issued for each megawatt hour (MWh) of eligible renewable output generated. The current market value is £49.20. The main support scheme, which has been set up for renewable electricity projects in the UK, is the Renewables Obligation, which places an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources.
Northern Ireland Renewables Obligation Locally the Northern Ireland Renewables Obligation is designed to incentivise renewable generation into the electricity generation market. These schemes were introduced by the Department of Enterprise, Trade and Investment and are administered by the Gas and Electricity Markets Authority (whose day to day functions are performed by Ofgem).
The Renewables Obligation (Northern Ireland) Order came into effect in April 2005. The Order places an obligation on licensed electricity suppliers in Northern Ireland to source an increasing proportion of electricity from renewable sources and this can be achieved by obtaining ROCʼs.
“Currently Northern Ireland businesses that have installed a renewable technology to create electricity are making significant savings on their energy bills. However, they could use their technology to generate revenue and reduce the payback period significantly by looking further afield and selling their ROCʼs to
licensed electricity suppliers across the UK,” said Michael Doran, director, Action Renewables. “To give a working example; a small business with a 20KW wind turbine, generating 26,200 units of electricity for use in their business each year, will save 10 pence per unit on their electricity; over £2,000 per year. They will also receive 104 ROCʼs that can be sold onto a licensed electricity supplier and at the current market price this equates to over £5,000. The added revenue will also reduce the companyʼs payback period to six or seven years.” “Most businesses will automatically think of selling their ROCʼs in the Northern Ireland market but could receive a higher price for them if they explore all opportunities and examine selling them in the UK mainland” adds Michael.
Action Renewables Energy Trading Limited Action Renewables Energy Trading Limited can assist organisations in obtaining a more competitive price for ROCʼs. Action Renewables will shortly be running seminars for their Association members on the business case for renewables and the use of ROCS and possible Feed In Tariffs etc. The Action Renewables Association is aimed primarily at bringing together like minded companies from across the full range of industry sectors in Northern Ireland. The common theme is ʻenergyʼ and all of the issues around it, such as costs, energy efficiency, alternative sources and new innovations.
For further information on ROCʼS or installing a Renewable
Technology to benefit your business please contact Jonathan Buick, programme manager, Action Renewables on 9073 7862 or email
jonathan.buick@actionrenewables.co.uk.
For more information on the Action Renewables Association please contact Terry Waugh
terry.waugh@actionrenewables.co.uk
www.businessfirstonline.co.uk
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