The Renewables Obligation (Amendment) Order (Northern Ireland) 2010

Made: 24th March 2010

Coming into operation: 1st April 2010

The Department has consulted with the Northern Ireland Authority for Utility Regulation, the General Consumer Council for Northern Ireland, electricity suppliers to whom this order applies, persons generating electricity from renewable sources in Northern Ireland and such other persons as it considers appropriate.

Citation and commencement

1

This Order may be cited as the Renewables Obligation (Amendment) Order (Northern Ireland) 2010 and shall come into operation on 1stApril2010.

Amendments

2

The Renewables Obligation Order (Northern Ireland) 2009[^f00002] (“the 2009 Order”) shall be amended in accordance with Articles 3 to 17 below.

The Renewables Obligation

3

In Article 5(3) (The renewables obligation) for “calculations A, B and C” substitute “calculations A and B”.

Calculation B

4

In Article 9 (calculation B) substitute—

(1) Calculation B is the number of renewables obligation certificates likely to be issued in respect of renewable electricity for a particular obligation period, as estimated by the Secretary of State under Article 9(2) of the Renewables Obligation Order 2009, increased by— (a) in relation to the obligation period ending on 31stMarch2011, 8 per cent; and (b) in relation to any other obligation period, 10 per cent.

Calculation C

5

Omit Article 10 (calculation C).

Determining the number of renewables obligation certificates to be produced in an obligation period

6

• (1) Article 11 (determining the number of renewables obligation certificates to be produced in an obligation period) is amended as follows.

• (2) In paragraph (1) for “calculations A, B and C” substitute “calculations A and B”.

• (3) In paragraph (2), after the words “calculation A is” insert “equal to or”.

• (4) In paragraph (3) at the beginning omit “Subject to paragraph (4),”.

• (5) Omit paragraph (4).

• (6) Omit paragraph (6).

Determining the number of renewables obligation certificates to be produced by a designated electricity supplier in order to discharge his renewables obligation

7

In Article 12 (determining the number of renewables obligation certificates to be produced by a designated electricity supplier in order to discharge his renewables obligation) omit paragraph (3).

Cases and circumstances when a NIROC must not be issued

8

After Article 18 (generating stations first commissioned before 1stJanuary1990) insert—

(18A) (1) Subject to paragraphs (2) and (3), NIROCs are not to be issued in respect of any electricity generated— (a) by an existing generating station, after 31stMarch2027; (b) by a new generating station, on or after the 20th anniversary of the date on which it was accredited or 31stMarch2033(whichever is the earlier). (2) Where, at the time it generates electricity, a generating station’s total installed capacity is greater than its original capacity, paragraph (1) applies only in relation to NIROCs which are to be issued in respect of electricity generated using the station’s original capacity. (3) In relation to the remainder of the electricity generated by the generating station, NIROCs are not to be issued in respect of any electricity generated on or after the 20th anniversary of the date on which, in the Authority’s view, the additional capacity first formed part of the station or 31st March 2033 (whichever is the earlier). (4) Where electricity generated by a generating station using additional capacity added at a particular time (“relevant additional capacity”) is not measured separately from— (a) electricity generated by it using additional capacity (if any) which was added to it at a different time, or (b) electricity generated by it using its original capacity, the electricity generated by it which is to be treated (for the purposes of paragraph (3)) as having been generated using the relevant additional capacity is the relevant percentage (the relevant percentage for these purposes being the relevant additional capacity at the date of generation of the electricity expressed as a percentage of the station’s total installed capacity at that date). (5) In this article— - “existing generating station” means a generating station which was accredited as at 25thJune2008; - “new generating station” means a generating station which was accredited after 25thJune2008; - “original capacity”, in relation to a generating station, means— in the case of an existing generating station, the capacity of the station as accredited and any additional capacity which (in the Authority’s view) formed part of the station by 25thJune2008; in the case of a new generating station, the capacity of the station as accredited.

Microgenerators

9

For Article 27 (microgenerators) substitute—

(27) (1) This Article applies to a generating station which— (a) is a microgenerator, (b) has not had a declared net capacity in excess of 50 kilowatts at any time after 31stMarch2009, and (c) is not a qualifying onshore wind station or a qualifying hydro station or a qualifying solar photovoltaic station. (2) The amount of electricity to be stated in each NIROC which is issued in respect of electricity generated by a generating station to which this Article applies is $1 2$ megawatt hour. (3) In this Article and in Articles 27A and 27B— - “qualifying hydro station” means a hydro generating station which was accredited after 31stMarch2010 and has not had a declared net capacity in excess of 1megawattat any time after 31stMarch2010; - “qualifying onshore wind station” means a generating station which— generates electricity from onshore wind, was accredited after 31stMarch2010, and has not had a declared net capacity in excess of 250 kilowatts at any time after 31stMarch2010; - “qualifying solar photovoltaic station”, means a generating station which— generates electricity from the direct conversion of sunlight into electricity, was accredited after 31stMarch2010, and has not had a declared net capacity in excess of 50 kilowatts at any time after 31stMarch2010. (27A) (1) This Article applies to a generating station which is— (a) a qualifying onshore wind station, or (b) a qualifying solar photovoltaic station. (2) The amount of electricity to be stated in each NIROC which is issued in respect of electricity generated by a generating station to which this Article applies is$1 4$ megawatt hour. (27B) (1) This Article applies to a generating station which is a qualifying hydro station. (2) The amount of electricity to be stated in each NIROC which is issued in respect of electricity generated by a generating station to which this article applies is— (a) in relation to a qualifying hydro station which has not had a declared net capacity in excess of 20 kilowatts at any time after 31stMarch2010, $1 4$ megawatt hour; (b) in relation to a qualifying hydro station which has had a declared net capacity in excess of 20 kilowatts but not in excess 250 kilowatts at any time after 31stMarch2010, $1 3$ megawatt hour; (c) in relation to a qualifying hydro station which has had a declared net capacity in excess of 250 kilowatts at any time after 31stMarch2010, ½ megawatt hour.

Generating Stations which were accredited as at 11thJuly2006

10

In Article 28(2) of the 2009 Order (Generating Stations which were accredited as at 11thJuly2006) in paragraph (2) after the words “to which this Article applies” insert “is”.

Refusing to issue and revoking NIROCs

11

• (1) Article 37 (refusing to issue and revoking NIROCs) is amended as follows.

• (2) In the last line of paragraph (2) for “must” substitute “may”.

• (3) In paragraph (4)(a) after “NIROC” insert “is accurate or”.

• (4) After paragraph (6) insert—

(7) This Article is subject to Article 37A(2) to (4).

Refusing to issue and revoking NIROCs: supplemental

12

After Article 37 (refusing to issue and revoking NIROCs) insert—

(37A) (1) A NIROC cannot be revoked where it has been produced to the Authority under Article 5 (the renewables obligation). (2) Nor can a NIROC be revoked by the Authority under Article 37(2) or (4) more than six years after it has been issued. (3) Where the Authority would have revoked a NIROC (“the original NIROC”) under Article 37(2) or (4) but for the fact that it has already been produced to it under Article 5, the Authority must, subject to paragraph (4), refuse to issue a further NIROC (“the further NIROC”) in respect of electricity generated by the generating station in relation to which the original NIROC was issued. (4) The Authority shall refuse to issue the further NIROC under paragraph (3) only if the original NIROC was— (a) issued no more than six years previously, and (b) not issued to an electricity supplier under Article 32(2) and (3).

Late payments to discharge the renewables obligation

13

In Article 41 (late payments to discharge the renewables obligation), after paragraph (6) insert—

(6A) If, by the end of the late payment period, the designated electricity supplier has not paid to the Authority the amount referred to in paragraph (2) and all interest required to be paid on that amount under paragraph (3), the supplier will not have discharged its renewables obligation for the relevant period.

Information to be provided to the Authority where electricity is generated from biomass

14

In Article 46 (information to be provided to the Authority where electricity is generated from biomass), in sub-paragraph 46(1)(a), after “from biomass” insert—

(other than landfill gas or sewage gas)

Revocation, transitional and savings

15

In Article 53(3)(a) (revocation, transitional and savings) for “on” substitute “or”.

The 2009 Order: Schedule 1

16

In Schedule 1 (calculation of the Obligation)—

• (a) delete “,10” from the heading; and

• (b) for “2027” substitute “2033”.

The 2009 Order: Schedules 2, 3, 4

17

In Schedule 2 (electricity to be stated in NIROCs)—

• (a) type=start slip=2010-04-01 time=1271752034071In Part 1 (Interpretation), at the appropriate place insert—type=end slip=2010-04-01 time=1271752034071

• “dedicated biomass with CHP” means electricity generated from regular biomass by a qualifying combined heat and power generating station in a month in which the generating station generates electricity only from regular biomass or only from biomass;

and

• “dedicated energy crops with CHP” means electricity generated from energy crops by a qualifying combined heat and power generating station in a month in which the generating station generates electricity only from energy crops or only from biomass;

• (b) Parts 2, 3 and 4 of Schedule 2 shall be deleted and replaced by—

Transitional and Savings

18

Nothing in this Order is to affect—

• (a) the issue and revocation of a NIROC in respect of electricity generated before 1stApril2010, and anything which falls to be done or determined (whether by the Authority or some other person) in relation to such issue or revocation, under the 2009 Order;

• (b) the banding and grandfathering of a NIROC in respect of electricity generated before 1stApril2010, and anything which falls to be done or determined (whether by the Authority or some other person) in relation to such banding or grandfathering, under the 2009 Order;

• (c) any obligations or requirements imposed on an operator of a generating station or some other person in respect of the obligation period ending on 31stMarch2010, and anything which falls to be done or determined (whether by the generator or some other person) in relation to any such obligations and requirements, under the 2009 Order;

• (d) any obligations and functions of the Authority in respect of that obligation period, and anything which falls to be done or determined (whether by the Authority or some other person) in relation to it, under the 2009 Order.

Signed

Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on 24March2010.

Jenny Pyper — A senior officer of the — Department of Enterprise, Trade and Investment

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order amends the Renewables Obligation Order (NI) 2009 (“the 2009 Order”)

The 2009 Order imposes an obligation (“the renewables obligation”) on all electricity suppliers, licensed under the Electricity Order (Northern Ireland) 1992 (“the Electricity Order”) who supply electricity in Northern Ireland, to produce a certain number of renewables obligation certificates in respect of each megawatt hour of electricity that each supplies to customers in Northern Ireland during a specified period known as an obligation period (Article 5). It also “bands” the different technologies that are used to generate electricity from renewable sources, meaning that the number of certificates that will be issued in respect of that electricity depends on the way in which that electricity has been generated. The Order provides for the renewables obligation to be administered by the Northern Ireland Authority for Utility Regulation (“the Authority”) who are responsible for issuing renewables obligation certificates (NIROCs) to renewable electricity generators on their renewable output. These certificates are sold to electricity suppliers with or without the associated renewable electricity.

Alternatively, instead of producing the required number of certificates in respect of all or part of their renewables obligation, a supplier is permitted to make a payment to the Authority.

Article 5 deletes Article 10 (Calculation C) of the 2009 Order to remove the ceiling of 20% on the level of the renewables obligation. Consequential amendments are made by Articles 3, 6 and 7 to remove references to calculation C in Articles 5(3), 11 and 12 of the 2009 Order.

Article 4 amends Article 9 (Calculation B) of the 2009 Order to increase the level of the percentage increase which is to be applied in calculation B from 8% to 10% for all obligation periods after 31stMarch2011. 8% will be used for the 1stApril2010to 31stMarch2011 obligation period.

Article 8 inserts provisions to extend the end date for the NIRO from 2027 until 2033 and to introduce a limit of 20 years on the eligibility period for generators accredited after 25thJune2008.

Article 9 amends the provisions for microgenerators and certain small scale renewable generation to permit higher levels of support for qualifying generation.

Article 10 makes a correction to Article 28 of the 2009 Order.

Articles 11 and 12 amend Article 37 of, and insert a new Article 37A, into the 2009 Order. These amendments and new provisions allow the Authority, in certain circumstances, to reduce the number of NIROCs issued to a generator in any period to take account of NIROCs that had been wrongly issued to that generator within the previous 6 years.

Article 13 inserts a new paragraph 6A into Article 41 (Late Payments to discharge the renewables obligation) clarifying the existing legal position in relation to the late payment period (defined in Article 41 of the 2009 Order).

Article 14 amends Article 46 of the 2009 Order in order to exclude landfill gas and sewage gas from the biomass sustainability reporting requirements.

Article 15 makes a correction to Article 53 of the 2009 Order.

Article 16 makes consequential changes to Schedule 1.

Article 17 inserts definitions into Part 1 of Schedule 2 for “dedicated biomass with CHP” and “dedicated energy crops with CHP”. Article 17 also deletes and replaces Parts 2, 3 and 4 of Schedule 2.

Article 18 provides for some provisions of the 2009 Order to be saved in respect of outstanding obligations or requirements imposed by it.

Footnotes

[^f00001]: S.I. 2003/419 (N.I. 6) Articles 52 to 55F were substituted for Articles 52 to 55 by S.R. 2009 No. 35.

[^f00002]: S.R. 2009 No. 154