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Wind Power: Finance

Volume 482: debated on Wednesday 5 November 2008

To ask the Secretary of State for Energy and Climate Change whether wind power subsidies resulting from the renewables obligation may be awarded to companies registered in tax havens; and if he will make a statement. (231195)

To ask the Secretary of State for Energy and Climate Change whether wind power subsidies resulting from the renewables obligation may be awarded to companies who are registered in other countries; and if he will make a statement. (231196)

The renewables obligation does not provide subsidies to licensed electricity suppliers but instead places an obligation on them to source a specific and annually increasing proportion of their sales from renewable sources. Suppliers meet their obligation either by presenting renewable obligation Certificates (ROCs); by paying a buy-out price; or a combination of presenting ROCs and paying the buy-out price. Money from the buy-out fund is recycled pro-rata to suppliers presenting ROCs.

ROCs are issued to accredited generators for every 1 MWh of electricity generated from eligible renewable sources. The electricity must be generated within the UK and supplied to customers within the UK by a licensed electricity supplier, or used in another permitted way. The Renewables Obligation Order places no restrictions on who may own or operate a generating station or hold a supply licence.