Price for Renewable Power Increases Due to New Build Shortfall, According to Platts and the Renewable Power Association.Business Editors LONDON--(BUSINESS WIRE)--Jan. 31, 2003 The price of renewable power is set to increase next year because of a lack of renewable power projects coming forward and a slippage Slippage The difference between estimated transaction costs and the amount actually paid. Notes: Slippage is usually attributed to a change in the spread. See also: Spread, Transaction Costs Slippage in the start dates of some major projects, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest Renewable Obligation Certificate (ROC) Price Marker(TM) produced by Platts and the Renewable Power Association. The price of ROCs is predicted to be around GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 56 in the next financial year - significantly up from the GBP53 figure predicted previously by the marker. Although the price of ROCs for the two following years falls to around GBP45, it rises again in 2006/7 to around GBP56 under the medium build scenario. ROCs are the currency of the Renewables Obligation The Renewables Obligation (RO)[1] is designed to incentivise the generation of electricity from eligible renewable sources in the United Kingdom. It was introduced in England and Wales and in a different form (the Renewables Obligation (Scotland)) in Scotland in April (RO), introduced in April 2002, to encourage suppliers to buy green power from new renewable projects. By 2010 the Government wants 10% of Great Britain's electricity supplies to come from renewable sources, such as wind, biomass, wave, solar and tidal power tidal power Electricity produced by turbines operated by tide flow. Large amounts of power are potentially available from the tides in certain locations, such as Canada's Bay of Fundy, where the tidal range reaches more than 50 ft (15 m), but this potential power is not . It is anticipated the forthcoming Government White Paper on energy will increase the renewables target to 20% by 2020. "The high price of ROCs shows that there is a real risk that the Government will not reach its 2010 renewables target," said Dominic Maclaine, editor of Platts Power UK. "If it wants to double the size of the obligation for 2020, the Government will have to think carefully about how to ensure the success of the Renewables Obligation and to make sure that as many barriers as possible facing renewable plant are removed." As well as reflecting the lack of projects coming forward, the latest marker values reflects a slippage in some project timescales. The marker predicts that the price of ROCs is anticipated to rise to as high as GBP78 by 2007/8 under the marker's low-build scenario. Even if all the projects currently put forward go ahead as planned the price of ROCs will still reach GBP55 - well above the baseline value of GBP30/MWh. The high level of future prices should provide a signal to developers to plan more renewable power projects. "A stable long term market is essential to bring in the investment needed to accelerate the uptake of renewables," says Philip Wolfe, the incoming chief executive officer of the Renewable Power Association (RPA RPA Remote Patron Authentication RPA Rural Payments Agency (UK Department of Environment, Food and Rural Affairs) RPA Replication Protein A RPA RNAse Protection Assay RPA Regional Plan Association RPA Random-Phase Approximation ). "The DTI Diffusion tensor imaging (DTI) A refinement of magnetic resonance imaging that allows the doctor to measure the flow of water and track the pathways of white matter in the brain. seems to have a good understanding of this issue and has recently reassured the RPA about its intentions to avoid unnecessary rule changes and to maintain the value of ROCs." The marker prices tie in with the recent Non Fossil Fuel fossil fuel: see energy, sources of; fuel. fossil fuel Any of a class of materials of biologic origin occurring within the Earth's crust that can be used as a source of energy. Fossil fuels include coal, petroleum, and natural gas. Purchasing Agency auction price for ROCs. At a recent auction, companies paid an average of GBP47.46 per ROC - matching almost exactly the figure predicted by the marker for the current year.
ROC
Value
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Obligation High build Medium Low build
Period rate build rate
rate
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2002-3 GBP47.00 GBP47.00 GBP47.00
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2003-4 GBP50.52 GBP56.38 GBP56.74
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2004-5 GBP40.84 GBP47.92 GBP52.07
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2005-6 GBP35.68 GBP45.85 GBP55.87
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2006-7 GBP46.97 GBP56.46 GBP66.97
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2007-8 GBP55.44 GBP66.61 GBP78.93
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Company Backgrounds: Platts is the world's largest and most authoritative provider of energy information and marketing services, with 14 offices worldwide. Products range from real-time and Internet-based news and price assessment services, to newsletters, market reports, databases, geospatial tools, magazines, conferences, research and consulting services and energy financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . Platts offerings cover the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets. Every day, more than $10 billion of trading activity and term contract sales are based on Platts' price assessments. Additional information is available at www.platts.com and www.plattsmetals.com . Founded in 1888, The McGraw-Hill Companies is a global information services See Information Systems. provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 350 offices in 33 countries. Sales in 2002 were $4.8 billion. Additional information is available at http://www.mcgraw-hill.com . The Renewable Power Association is a trade association representing producers of renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. . It is pan-technology - its members are involved in all forms of renewable energy, including biomass, wind energy, solar, biogas bi·o·gas n. A mixture of methane and carbon dioxide produced by bacterial degradation of organic matter and used as a fuel. biogas Noun gaseous fuel produced by the fermentation of organic waste , energy-from-waste, landfill gas, hydropower hy·dro·pow·er n. Hydroelectric power. , wave, tidal stream and sewage gas. Manufacturers and service providers are also represented. Together the RPA's membership accounts for almost 70% of the current ROC-accredited generating capacity. |
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