The Renewables Obligation (RO) is a financial incentive mechanism designed to encourage deployment of renewable energy capacity in the UK, introduced in 2002.
Keith Anderson, managing director of ScottishPower Renewables, said: “This commitment will strengthen investors’ confidence in UK renewable industry. It is also a good signal for developers to investigate projects, especially those offshore that will now be fully covered by the incentive mechanism, ensuring a sufficient return on their investment. We are now looking forward to working with the government on further consultations to discuss the future of the RO.”
In April 2006, ScottishPower was granted final planning approval to construct Europe’s largest on-shore windfarm, the 322MW Whitelee project south of Glasgow. The 140 turbine project would provide enough green energy to power 200,000 homes.
The development of Whitelee highlights the importance of clarity and consistency from the Government in the operation of its Renewables Obligation (RO). It is vital that the integrity of the RO policy and its implementation remains intact, otherwise investment confidence will be damaged and the UK’s renewables’ target threatened.
ScottishPower is a generator of wind power in the UK with 288 MW operational and 75 MW currently under construction. Including Whitelee, ScottishPower has had a further four projects totalling over 400MW approved for construction over the past few months.
