Ten more years!

Just listening to the soporific Alistair Darling and the pre-budget statement.

High excitement as he extends the RO by ten years to 2037 - which should at least give a boost to companies exposed to ROCs (Novera springs to mind, and I think it means that companies which substantially don't meet their obligation under the RO (Eon, RWE, British Energy, Centrica based on 2006/07 RO data) might face more costs than they thought at this point yesterday.

Don't forget shares can go down as well as up, and I'm not licensed to give investment advice etc

Cap on ROC values in Energy White Paper

Has anyone else noticed that the Energy White Paper has effectively capped the value of ROCs after 2015/16 when the headroom mechanism kicks in?

Assuming the 15% target has been met, the target for any year will be set at 6% more than the anticipated delivery of ROCs in that year - effectively limiting the recycle value to 6% of the buyout premium. This must be a slap in the face for people with long term ROC eligible projects (I'm thinking onshore wind), where this was going to be a big part of revenues in later years.

The flip side is that if (and it's a biggish if) additional renewables capacity comes through as a result of banding, at least the bottom won't fall out of the market.