ROC meaning in oil and gas

Renewable Obligation Certificate

The Obligation requires UK electricity companies to source an increasing proportion of their supply from renewable technologies to reach the 10% goal by 2010. <p> Renewable Obligation Certificates (ROCs) will be awarded to accredited generators of eligible renewable electricity produced within the UK – solar energy (including photovoltaics), hydro, wave power, tidal energy, geothermal energy, biofuels (including energy crops) and on-and offshore wind, and may then be provided to electricity companies in return for purchasing that power. Companies that are unable or unwilling to source the required amounts have the option of ‘buying out’ their Obligation. The ‘buy out’ price is initially set at £30/MWh (US$43/MWh), and will be adjusted annually in line with the retail price index. Monies raised from companies ‘buying out’ in this way will be redistributed to companies that have met their Obligation, in proportion to the number of ROCs they presented in that year. This will act as a further market stimulation.<p> ROCs effectively increase the price of renewable power by minimum £30/MWhr to encourage investment.