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PRACTICE NOTES
Renewable Transport Fuel Obligation (RTFO) The RTFO is one of the government's main policies for reducing greenhouse gas (GHG) emissions from fuels supplied for use in: • road vehicles • non-road transports which include: ◦ non-road mobile machinery (NRMM) ◦ inland waterway vessels which do not normally operate at sea ◦ tractors ◦ recreational craft that do not normally operate at sea ◦ alternatively powered trains that do not already fall within the definition of NRMM (eg hydrogen fuel cell-powered trains) ◦ alternatively powered non-road vehicles which don not already fall within the definition of NRMM • aircraft • maritime, but only when the fuel used is a renewable fuel of non-biological origin (RFNBO) The Renewable Transport Fuel Obligation (RTFO) represents one of many government measures designed to support the UK’s wider renewables and carbon emissions aspirations, including its targets under the Climate Change Act 2008 (CCA 2008). It was first implemented in compliance with the EU Renewable Energy Directive 2009/28/EC (RED) and pursuant to secondary legislation
CHECKLISTS
International construction arbitration is evolving as the technological, commercial and regulatory forces shaping the global shift to renewable energy also transform the disputes landscape. Traditional issues such as delay and disruption, defects, and variations endure, but they now sit alongside challenges arising from fragmented procurement structures, complex multi-contract interfaces, reliance on first-of-a-kind and proprietary technologies, and unprecedented volumes of digital project data. Supply chain volatility, including extended lead times, constrained original equipment manufacturer (OEM) capacity, limited alternatives for proprietary components and sharp price fluctuations, have created new delay and cost risks that increasingly surface in disputes. For more on the recent trends in renewable and energy transition projects, see News Analysis: The changing face of international construction arbitration in renewable and energy transition projects. Arbitration practice is adapting. Tribunals are increasingly required to navigate dense technical and digital evidence, dispute board enforcement issues, and jurisdictional problems created by multi-contract procurement models. Issues linked to third party funders, security for costs, and the overlap between
GLOSSARY
Renewable energy is energy that is collected from renewable resources that do not deplete or can be replenished within a human's life time, such as sunlight, wind, rain, tides, waves, and geothermal heat.
NEWS
Ireland—Property analysis: This article, was written by Niamh McGovern and Jacinta Conway of Arthur Cox LLP. The EU has taken several initiatives to accelerate the roll-out of renewable energy development, key among which is streamlining and expediting permit-granting procedures under the Renewable Energy Directive (RED III), at Articles 15b to 17.
GLOSSARY
Term life insurance with a term of, for example, three years, at the end of which the policy can be renewed for a further three years and similarly thereafter for an overall specified length of time.
NEWS
RenewableUK has published a report that highlights the Labour Party’s plans to establish Great British Energy (GB Energy) as a state-backed company to invest in new renewable energy projects. The report suggests that the new government’s plans can positively support emerging technologies and the transition to clean power, provided that GB Energy is appropriately structured so as to not disrupt the energy market.
NEWS
RenewableUK has published a report detailing proposed reforms to the current allocations process for the Contracts for Difference (CfD) Scheme, seeking to achieve a substantial change in the UK's renewable energy deployment.
NEWS
RenewableUK has published its 2024 Autumn Budget submission to His Majesty's Treasury (HMT), outlining its key priorities, as well as a series of low-cost measures to support the acceleration of the UK’s renewable energy sector to meet the 2030 clean power target and the sustained transition to a net zero economy.
GLOSSARY
The renewables obligation subsidy scheme (RO scheme) was intended to support investment in renewable generation projects. On 31 March 2017 the RO scheme closed to most types of newly commissioned generating station/extensions to generating station, subject to certain grace periods.
GLOSSARY
The current main mechanism for supporting large scale generation of renewable electricity in the UK. It was introduced in April 2002 and places an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources.
PRACTICE NOTES
What is the Renewables Obligation scheme? The renewables obligation (RO) scheme was intended to support investment in renewable generation projects. The scheme came into effect in 2002 in Great Britain, and in 2005 in Northern Ireland. It obliged customer-facing electricity suppliers to source an increasing proportion of their wholesale electricity from renewable sources. Subject to certain exceptions, the RO closed for accreditation of new solar PV and onshore wind projects as renewable sources on 31 March 2015 and for all new other types of electricity generation projects from 1 April 2017. For more on this, see: Closure of the RO to new generation and grace periods below. The Secretary of State (SoS) for Energy, Security and Net Zero who is responsible for the Department for Energy Security and Net Zero (DESNZ) calculates the required proportion in accordance with the Renewables Obligation Order 2015 (RO Order 2015) SI 2015/1974, arts 7–13B. These calculations produce a number of megawatt hours (MWh) of renewable output to be purchased by suppliers for each MWh of electricity (of whatever source) that
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. Why do generators needed to be accredited? The Renewables Obligation (RO) supports investment in renewable generation projects. It does this by placing customer-facing electricity suppliers—who (directly or indirectly) purchase their electricity from generators—under an obligation to source an increasing proportion of their wholesale electricity from renewable sources. The required proportion is set by the Secretary of State (SoS) for Business, Energy and Industrial Strategy (BEIS). The supplier evidences its purchases of renewable electricity by the submission of ‘Renewable Obligation Certificates’ (ROCs) to the Office of Gas and Electricity Markets (Ofgem). Electricity suppliers are required to evidence their purchases of renewable energy by submitting ROCs to Ofgem. New ROCs are only issued to accredited renewable generators in order to incentivise suppliers to buy their renewable energy (and accompanying, separately priced ROCs) from renewable projects, thus providing those projects with an element of financial support. The RO is primarily provided for in the Renewables Obligation Order 2015, SI 2015/1947 (RO Order 2015) (as amended