(This note is not part of the Order)
This Order is made under Articles 52 to 55 and 66(3) of the Energy (Northern Ireland) Order 2003 and imposes an obligation (“the renewables obligation”) on all electricity suppliers, who are licensed under the Electricity (Northern Ireland) Order 1992, to supply to customers in Northern Ireland specified amounts of electricity generated from renewable sources. As alternatives, in respect of all or part of an electricity supplier’s renewables obligation, an electricity supplier is permitted to provide evidence that other licensed electricity suppliers have supplied electricity generated using renewable sources instead of it or to make a payment to the Northern Ireland Authority for Energy Regulation (“the Authority”). Renewable sources include sources of energy such as wind, water, solar and biomass.
The Order revokes and replaces, with amendments, the Renewables Obligation Order (Northern Ireland) 2006 (“the 2006 Order”). The main differences between this Order and the 2006 Order are the changes enabling small generators to amalgamate their output and /or appoint agents to act on their behalf.
Article 2 contains the interpretation provisions for the Order.
Article 3 imposes the renewables obligation on electricity suppliers. The renewables obligation requires the electricity supplier to produce evidence of the supply of electricity generated from renewable sources to the Authority. The evidence required is in the form of certificates issued by the Authority (and which are referred to in the Order as “NIROCs”) and which now include certificates in respect of the aggregated eligible output of more than one small generating station.
Article 4 and Schedule 2 provide for how the amount of an electricity supplier’s renewables obligation is to be determined.
Articles 5 to 9 determine what types of electricity generated from renewable sources are eligible to satisfy an electricity supplier’s renewables obligation.
Article 10 provides that, instead of producing NIROCs to the Authority, an electricity supplier may discharge (in whole or part) his renewables obligation by making a payment to the Authority.
Article 11 provides for suppliers to discharge their renewables obligation by tendering eligible GBROCs - ie Renewable Obligation Certificates issued by the Gas and Electricity Markets Authority (“GEMA”) under the GB Renewables Obligation Orders. Schedule 1 outlines the conditions governing GBROC eligibility.
Article 12 provides for suppliers to discharge their renewables obligation by producing NIROCs issued in respect of electricity consumed by the operators of generating stations.
Article 13 contains additional provision in relation to the production of NIROCs and eligible GBROCs issued in respect of electricity generated from the co-firing of fossil fuel with biomass as provided for in Article 7. The limits set out in Article 13(2) do not apply to the production of NIROCs or eligible GBROCs if and to the extent that they state the amount of electricity attributable to energy crops.
Articles 14 to 19, 21 and 22, and Schedule 3 provide for the issue of NIROCs by the Authority and the maintenance by it of a register of NIROCs. Articles 15,18 and 19 introduce new provisions in relation to the issue of NIROCs to agents on behalf of a group of two or more generators. Article 20 provides for NIROCs issued in respect of electricity generated under Northern Ireland Non-Fossil Fuel Arrangements to be issued by reference to financial bids with the person making the highest bid being the person to whom the NIROCs are to be issued.
Article 23 provides for the revocation of NIROCs in specified circumstances.
Article 24 contains special arrangements enabling generating stations with a declared net capacity of 50 kilowatts or less to be able to claim NIROCs on an annual rather than monthly basis.
Article 25 provides how payments made to the Authority by electricity suppliers under Article 10 are to be divided amongst those electricity suppliers subject to the renewables obligations in Great Britain and in Northern Ireland.
Article 26 provides for an electricity supplier to be treated as having discharged its renewables obligation by making a late payment in accordance with that Article. The late payment must be made during a specified period and is subject to a surcharge which rises on a daily basis. If a supplier only makes a partial late payment the remaining part of its renewables obligation not covered by the partial late payment, remains outstanding and the supplier is still in default of its renewables obligation.
Article 27 provides for the Authority to obtain information to enable it to carry out its functions under the Order.
Article 28 provides for the exchange of information between the Authority and the GEMA relating to GBROCs produced to the Authority under Article 3 and NIROCs produced to GEMA under the GB Renewables Obligation Orders.
Article 29 makes provision relating to the functions of the Authority under the Order.
Article 30 provides for the preliminary accreditation and accreditation of generating stations. In order to be eligible to claim NIROCs in respect of electricity generated from renewable sources, a generating station must have obtained accreditation from the Authority.
Article 31 revokes the 2006 Order and provides for savings in respect of the obligations of each electricity supplier to produce evidence and other information in respect of the renewables obligation, or make payments to the Authority, and to furnish information to DETI , in respect of periods prior to the coming into force of this Order.
A Regulatory Impact Assessment is available and can be obtained from the Sustainable Energy Branch, Department of Enterprise, Trade and Investment, Netherleigh, Massey Avenue, BELFAST BT4 2JP.