Renewable power: the supply and demand balance

Introduction

Increasing supplier power on the RO may reduce its success. This brief provides an analysis of the wholesale market for renewable power against the demand for it created by the renewables obligation.

Scope

• an analysis of supplier performance in meeting their renewables obligation with their own (generated) ROCs.
• forecasts of future RO performance of suppliers by adjusting the rate wind-farms are commissioned.
• a calculation on the net cost to suppliers of the RO, in 2004/05 and estimates over forthcoming years.

Highlights

For suppliers the RO remains a burden rather than an opportunity.

Some suppliers have a big advantage by having assets under planning.

The best thing for a supplier is to own assets, and hope others do not.

Reasons to Purchase

• understand the make up of the renewables sector and involvement of the suppliers.
• investigate the issues surrounding suppliers' RO and their decision to commission new capacity.
• consider the potential of the RO (and each supplier's) being met with current projects under planning.