Subsidies for renewably fuelled electricity and heat generation and embedded benefits

Introduction

This is an overview of the key content to be found in our Subsidies for renewably fuelled electricity and heat generation and embedded benefits subtopic. It briefly explains the nature of this content and provides links to it.

For more information on the Great Britain (GB) electricity regulatory regime more generally, see our subtopic Overarching GB Gas and Electricity Market Regulation.

For more information on GB renewables projects of different types, see our subtopics: Solar and Onshore Wind Projects, Offshore Renewable Projects, Fuelled renewable, hydro and other baseload renewable projects.

For more information on international renewables projects, see subtopic: International Renewables.

Renewables Obligation (RO)

This subtopic contains the following Practice Notes in relation to the RO:

•
Practice Note: Renewables Obligation (RO) scheme—key features provides a detailed introduction to the role and statutory basis of the RO and Renewable Obligation Certificates (ROCs). It explores the RO’s and ROCs’ role in the context of Great Britain renewable electricity generators and electricity suppliers. It also discusses the closure of the RO to new renewable

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Energy News

NSTA publishes 2024 Reserves and Resources Report

The North Sea Transition Authority (NSTA) has published its 2024 Reserves and Resources report, estimating the UK’s proven and probable oil and gas reserves at 2.9 billion barrels of oil equivalent (boe) as at the end of 2024.

Ofgem consults on progression commitment fee for Gate 2 connections queue

Ofgem has launched a consultation on its minded-to-position to approve the original proposal of Connection and Use of System Code (CUSC) modification CMP448. The modification seeks to introduce a progression commitment fee to incentivise regular self-assessment of project readiness in the Gate 2 connections queue and to encourage the timely exit of less committed projects. The fee would start at £2,500/MW, increasing by £2,500/MW every six months up to a cap of £10,000/MW, and would apply to generation projects that have accepted a Gate 2 connection offer but have not yet passed Queue Management Milestone 1. Ofgem's minded-to position favours the original proposal over the two alternative modifications (WACM1 and WACM2), concluding it best facilitates the applicable CUSC objectives. The consultation closes on 3 November 2025. Alongside this, Ofgem has published an impact assessment setting out the analysis underpinning CMP448 and explaining the rationale for recommending the original proposal.

European Parliament committees approve ban on Russian gas and oil imports

The European Parliament’s Committees on Industry, Research and Energy (ITRE) and on International Trade (INTA) have jointly adopted draft legislation to ban imports of Russian natural gas, including pipeline and liquefied natural gas (LNG), from 1 January 2026, with limited exemptions for pre-existing contracts until mid-2026 and early 2027. The proposal also prohibits the storage of Russian-origin gas in EU facilities and extends the ban to Russian oil and petroleum products from the same date. It introduces stricter customs verification of production origin, mandatory authorisation and audits, and measures to prevent circumvention through re-labelling, transit via third countries, or shadow fleets. The Committees removed a clause allowing temporary suspension of the ban for energy security reasons and added penalties for breaches. The draft was approved by 83 votes to 9, with 1 abstention, and negotiations with the Danish Presidency of the Council were authorised. This initiative aims to protect the EU from the weaponisation of energy supplies by the Russian Federation, which intensified following its 2022 invasion of Ukraine and the ensuing manipulation of European gas markets.

Commission and High Representative present new EU global climate and energy strategy

The European Commission and the High Representative have presented a new international strategy for securing Europe’s place in global markets titled EU global climate and energy vision. The strategy uses diplomacy to protect the EU’s core interests, promote fair transition standards and address new security threats. It adds an external dimension to the Clean Industrial Deal and aims to expand the EU’s clean technology manufacturing capacity to 15% of the global market while strengthening industrial competitiveness in line with the Clean Industrial Goal—seeking to fulfil the objectives set out in the Paris Agreement. The European Commission has also published a Questions and Answers page to provide further clarity on the objectives and implementation of the vision