July 12, 2002—The price of renewable power is set to soar in the next couple of years because not enough green power plants will be built to meet Government targets, according to new research by Platts, an energy information provider, and the Renewable Power Association.
The value of Renewable Obligation Certificates (ROCs) could rise to well over 60/MWh, predicts a new price market, entitled The Renewable Obligation Certificate Price Marker, published by Platts. The research indicates that not enough new renewable power projects are being planned for the Government to meet its 2010 target. This means that the price of ROCs could rise steeply over the next few years because demand for green power will not be met by supply.
By 2010 the Government wants 10% of Great Britain’s electricity supplies to come from renewable sources, such as wind, biomass, wave, solar and tidal power. The Renewable Obligation Certificate Price Marker shows that the value of green electricity or rather Renewable Obligation Certificates (ROCs) will remain well over the anticipated value of 30/MWh—indicating that more renewable projects are required.
The value of the ROCs changes as more green plants come online. At the moment it is over 40/MWh but the level will change over time as the obligation rises and more plant are built. The Platts Renewable Obligation Certificate Price Marker estimates the likely value of ROCs over the next five years.
For more information, contact Platts.
