The UK government has placed an order to introduce a Renewable Energy Obligation before the national parliament. The obligation will require electricity suppliers in England and Wales to provide a specified proportion of their electricity from renewable energy sources.

Under the order, the government will set a target of providing ten per cent of electricity from eligible renewable sources by 2010. The level in 2000 was 2.8 per cent. The legislation also includes a price ceiling to limit the cost to consumers. The government expects the order to form part of a long term framework, stretching until at least 2027, within which the renewable energy industry will be encouraged to develop.