Waveplam

In one more step to promote the take-off of its marine renewable industry Scotland has recently announced that it wishes to implement banded levels of finance for marine developments. Consultation on changes to the Renewables Obligation (Scotland) revealed plans to provide five Renewable Obligation Certificates (ROCs) for wave energy devices and three for tidal devices for each Megawatt of power produced. This is intended to provide a strong economic incentive, in particular when compared to the two ROCs received for both wave and tidal devices in England and Wales.

The Renewables Obligation Scotland (ROS), which came into force in April 2002, compels electricity suppliers to ensure that a fraction of the electricity they supply to Scottish costumers comes from renewable sources. In return, the producers receive a Renewable Obligation Certificate (ROC) for every megawatt hour produced. Each ROC is currently worth around £47 (approx 56€ in November 2008). The goal is for the banded ROS to replace the existing Marine Supply Obligation (MSO).

The Renewable Obligation has been set at 9.1% for 2008/09 and will rise to 15.4% in 2015/16 being within the goals of the UK Renewable Energy Strategy to further raise the Obligation between 30 and 35% by 2020. This move emphasizes Scotland’s commitment to explore its green marine renewable resources consolidating it as one of the worlds industry leaders. It is particularly relevant considering the contrast to the incentives of two ROCs on offer in England and Wales as competition to attract investors starts to gain importance.

In order to be eligible for ROCs, the power plants must be in accordance with the definition of wave or tidal stream as set out in the ROS; be situated up to 200 nautical miles off the Scottish coast and be connected directly to a transmission and distribution network in Scotland.

Proposals for this scheme imply that generators must not have received support under existing capital and revenue support mechanisms for wave and tidal stream energy operated by either the Scottish Government of the UK Government. In case of having benefited from such support the projects will be eligible for only two ROCs.

However, the move is dependant on changes being made to the primary legislation through the draft UK Energy Bill, which would result on the powers being transferred to the Scottish Ministers.