The Renewables Obligation (“RO”) was the primary UK government scheme to support the development of large-scale renewable energy generation, in order to support the UK’s climate change objectives. It was introduced in 2002 and closed to all new generation contracts in April 2017, however, existing RO contracts will continue to run until 2037. The RO is funded by suppliers, with costs then recovered from consumers.
This lesson describes the Renewables Obligation scheme to subsidise large-scale renewable generation and how it is funded by suppliers.