Citation and commencement

1.  This Order may be cited as the Renewables Obligation Closure Order 2014 and comes into force on the day after the day on which it is made.

Interpretation

2.—(1) In this Order—

“accredited” is to be construed in accordance with the definition of “accreditation” in article 2 of the Renewables Obligation Order 2009(5);

“CHPQA 3” means the Combined Heat and Power Quality Assurance Standard, Issue 3, published by the Department for Environment, Food and Rural Affairs in January 2009(6);

“CHPQA 5” means the Combined Heat and Power Quality Assurance Standard, Issue 5, published by the Department of Energy and Climate Change in November 2013(7);

“commission” and “commissioned” are to be construed in accordance with the definition of “commissioned” in article 2 of the Renewables Obligation Order 2009;

“grid works”, in relation to a generating station, means—

“network operator” means a distribution exemption holder, distribution licence holder or a transmission licence holder;

“original capacity”, in relation to a generating station, means the generating capacity of the station as accredited;

“radar works” means—

“relevant date” means the later of—

“relevant fossil fuel generating station” has the same meaning as in Schedule 2 to the Renewables Obligation Order 2009(8).

(2) In this Order, the following have the same meaning as in the Renewables Obligation Order 2009(9)—

• “biomass”;

• “energy crops”;

• “permitted ancillary purposes”;

• “regular biomass”;

• “waste”.

No certificates to be issued in respect of electricity generated after 31st March 2017

3.—(1) Subject to paragraph (2), no renewables obligation certificates are to be issued under a renewables obligation order in respect of electricity generated after 31st March 2017.

(2) Paragraph (1) does not apply to electricity generated in any one or more of the circumstances set out in articles 4 to 12.

Circumstances relating to generating stations accredited, and generating capacity added, on or before 31st March 2017

4.  The circumstances set out in this article are where the electricity is—

(a)generated by a generating station which was accredited on or before 31st March 2017, and

(b)generated using—

(i)the original capacity of the station, or

(ii)any generating capacity which in the Authority’s view first formed part of the station from a date no later than 31st March 2017.

Circumstances relating to certain delays in grid or radar works in the case of generating stations accredited on or before 31st March 2017

5.—(1) The circumstances set out in this article are where the electricity is—

(a)generated by a generating station which was accredited on or before 31st March 2017, and

(b)generated using 2017/18 capacity in respect of which the documents specified in paragraph (2), (3) or (4) have been submitted by the operator of the station to the Authority.

(2) The documents specified in this paragraph are—

(a)evidence of an agreement with a network operator (“the relevant network operator”) to carry out grid works in relation to the station (“the relevant grid works”);

(b)a copy of a document written by, or on behalf of, the relevant network operator which estimated or set a date for completion of the relevant grid works (“the planned grid works completion date”) which was no later than 31st March 2017;

(c)a letter from the relevant network operator confirming (whether or not such confirmation is subject to any conditions or other terms) that—

(i)the relevant grid works were completed after the planned grid works completion date, and

(ii)in the relevant network operator’s opinion, the failure to complete the relevant grid works on or before the planned grid works completion date was not due to any breach by a generating station developer of any agreement with the relevant network operator; and

(d)a declaration by the operator of the generating station that, to the best of their knowledge and belief, the 2017/18 capacity would have formed part of the station on or before 31st March 2017 if the relevant grid works had been completed on or before the planned grid works completion date.

(3) The documents specified in this paragraph are—

(a)evidence of an agreement between a generating station developer and a person who is not a generating station developer (“the radar works agreement”) for the carrying out of radar works (“the relevant radar works”);

(b)a copy of a document written by, or on behalf of, a party to the radar works agreement (other than a generating station developer) which estimated or set a date for completion of the relevant radar works (“the planned radar works completion date”) which was no later than 31st March 2017;

(c)a letter from a party to the radar works agreement (other than a generating station developer) confirming, whether or not such confirmation is subject to any conditions or other terms, that—

(i)the relevant radar works were completed after the planned radar works completion date, and

(ii)in that party’s opinion, the failure to complete the relevant radar works on or before the planned radar works completion date was not due to any breach of the radar works agreement by a generating station developer; and

(d)a declaration by the operator of the generating station that, to the best of their knowledge and belief, the 2017/18 capacity would have formed part of the station on or before 31st March 2017 if the relevant radar works had been completed on or before the planned radar works completion date.

(4) The documents specified in this paragraph are—

(a)the documents specified in paragraph (2)(a), (b) and (c);

(b)the documents specified in paragraph (3)(a), (b) and (c); and

(c)a declaration by the operator of the generating station that, to the best of their knowledge and belief, the 2017/18 capacity would have formed part of the station on or before 31st March 2017 if—

(i)the relevant grid works had been completed on or before the planned grid works completion date, and

(ii)the relevant radar works had been completed on or before the planned radar works completion date.

(5) In this article—

“2017/18 capacity”, in relation to a generating station, means any generating capacity—

“generating station developer”, in relation to a generating station, means the operator of the station, or a person who arranged for the construction of the 2017/18 capacity of the station.

Circumstances relating to certain delays in grid or radar works in the case of generating stations first accredited after 31st March 2017

6.—(1) The circumstances set out in this article are where the electricity is generated using the original capacity of a generating station—

(a)which was not accredited on or before 31st March 2017,

(b)which was accredited on or before 31st March 2018, and

(c)in respect of which the documents specified in paragraph (2), (3) or (4) were submitted by the operator of the station and received by the Authority on or before the date on which the Authority made its decision to accredit the station.

(2) The documents specified in this paragraph are—

(a)evidence of an agreement with a network operator (“the relevant network operator”) to carry out grid works in relation to the station (“the relevant grid works”);

(b)a copy of a document written by, or on behalf of, the relevant network operator which estimated or set a date for completion of the relevant grid works (“the planned grid works completion date”) which was no later than 31st March 2017;

(c)a letter from the relevant network operator confirming (whether or not such confirmation is subject to any conditions or other terms) that—

(i)the relevant grid works were completed after the planned grid works completion date, and

(ii)in the relevant network operator’s opinion, the failure to complete the relevant grid works on or before the planned grid works completion date was not due to any breach by a generating station developer of any agreement with the relevant network operator; and

(d)a declaration by the operator of the generating station that, to the best of their knowledge and belief, the station would have been commissioned on or before 31st March 2017 if the relevant grid works had been completed on or before the planned grid works completion date.

(3) The documents specified in this paragraph are—

(a)evidence of an agreement between a generating station developer and a person who is not a generating station developer (“the radar works agreement”) for the carrying out of radar works (“the relevant radar works”);

(b)a copy of a document written by, or on behalf of, a party to the radar works agreement (other than a generating station developer) which estimated or set a date for completion of the relevant radar works (“the planned radar works completion date”) which was no later than 31st March 2017;

(c)a letter from a party to the radar works agreement (other than a generating station developer) confirming, whether or not such confirmation is subject to any conditions or other terms, that—

(i)the relevant radar works were completed after the planned radar works completion date, and

(ii)in that party’s opinion, the failure to complete the relevant radar works on or before the planned radar works completion date was not due to any breach of the radar works agreement by a generating station developer; and

(d)a declaration by the operator of the generating station that, to the best of their knowledge and belief, the station would have been commissioned on or before 31st March 2017 if the relevant radar works had been completed on or before the planned radar works completion date.

(4) The documents specified in this paragraph are—

(a)the documents specified in paragraph (2)(a), (b) and (c);

(b)the documents specified in paragraph (3)(a), (b) and (c); and

(c)a declaration by the operator of the generating station that, to the best of their knowledge and belief, the station would have been commissioned on or before 31st March 2017 if—

(i)the relevant grid works had been completed on or before the planned grid works completion date, and

(ii)the relevant radar works had been completed on or before the planned radar works completion date.

(5) In this article, “generating station developer”, in relation to a generating station, means the operator of the station, or a person who arranged for the construction of the station.

Circumstances relating to generating stations in respect of which an investment contract has ceased to have effect

7.—(1) The circumstances set out in this article are where the electricity is generated using the original capacity of a generating station—

(a)which was accredited on or before 31st March 2018, and

(b)in respect of which the document specified in paragraph (2) was received by the Authority on or before the date on which the Authority made its decision to accredit the station.

(2) The document specified in this paragraph is a letter from the Secretary of State confirming that—

(a)an investment contract was made in relation to the generation of electricity by the generating station, and

(b)the investment contract has been terminated or has otherwise ceased to have effect by reason of a permitted termination event.

(3) In this article—

“investment contract” has the meaning given in paragraph 1 of Schedule 2 to the Energy Act 2013(10); and

“permitted termination event”, in relation to an investment contract, means—

Circumstances relating to certain generating stations that have been allocated a place within the dedicated biomass cap

8.—(1) The circumstances set out in this article are where the electricity is generated—

(a)using the original capacity of a generating station—

(i)which is not a relevant fossil fuel generating station,

(ii)which was accredited on or before 30th September 2018,

(iii)which has, in at least one month since it was accredited, generated electricity only from biomass, and

(iv)in respect of which the documents specified in paragraph (3) were received by the Authority on or before the date on which the Authority made its decision to accredit the station, and

(b)in a month in which the station generates electricity wholly or partly from solid fuel which is—

(i)regular biomass, or

(ii)energy crops.

(2) For the purposes of paragraph (1)(a)(iii), in determining whether electricity has been generated only from biomass, no account is to be taken of any fossil fuel or waste which the generating station uses for permitted ancillary purposes.

(3) The documents specified in this paragraph are—

(a)a copy of a letter from the Secretary of State, where the letter—

(i)is dated no later than 31st March 2017, and

(ii)states that the generating station has been allocated a place under the dedicated biomass cap; and

(b)where the generating station has not been certified under CHPQA 3 or CHPQA 5 at any time before it was commissioned, a declaration by the operator of the station that, to the best of their knowledge and belief, the station’s place under the dedicated biomass cap has not lapsed or been revoked or withdrawn by the Secretary of State.

(4) In paragraph (3), “dedicated biomass cap” refers to the Government’s policy for a 400 megawatt cap on the total amount of new build generating capacity that receives support for the generation of electricity only from biomass(11).

Circumstances relating to certain Scottish offshore wind generating stations using test and demonstration wind turbines

9.  The circumstances set out in this article are where—

(a)article 30C of the Renewables Obligation (Scotland) Order 2009(12) applies to the electricity, and

(b)the electricity is generated using the original capacity of a generating station which was accredited on or before 30th September 2018.

Circumstances relating to certain Scottish offshore wind generating stations using floating wind turbines

10.  The circumstances set out in this article are where—

(a)article 30D of the Renewables Obligation (Scotland) Order 2009(13) applies to the electricity, and

(b)the electricity is generated using the original capacity of a generating station which was accredited on or before 30th September 2018.

Circumstances relating to certain offshore wind, gasification or pyrolysis generating stations notified to the Authority on or before the relevant date

11.  The circumstances set out in this article are where the electricity is generated—

(a)using the original capacity of a generating station—

(i)which was accredited on or before 31st March 2018, and

(ii)in respect of which a notice of intent (within the meaning of article 13) was received by the Authority on or before the relevant date, and

(b)in the way described in Part 1 of Schedule 2 to the Renewables Obligation Order 2009 as—

(i)advanced gasification/pyrolysis,

(ii)offshore wind, or

(iii)standard gasification/pyrolysis.

Circumstances relating to certain biomass generating stations having been certified under the CHPQA and notified to the Authority on or before the relevant date

12.—(1) The circumstances set out in this article are where the electricity is generated—

(a)using the original capacity of a generating station—

(i)which was certified under CHPQA 3 or CHPQA 5 at any time on or before the relevant date (whether or not the station remains so certified),

(ii)which is not a relevant fossil fuel generating station,

(iii)which was accredited on or before 30th September 2018,

(iv)which has, in at least one month since it was accredited, generated electricity only from biomass, and

(v)in respect of which a notice of intent (within the meaning of article 13) was received by the Authority on or before the relevant date, and

(b)in a month in which the station generates electricity wholly or partly from solid fuel which is—

(i)regular biomass, or

(ii)energy crops.

(2) For the purposes of paragraph (1)(a)(iv), in determining whether electricity has been generated only from biomass, no account is to be taken of any fossil fuel or waste which the generating station uses for permitted ancillary purposes.

Notices of intent

13.—(1) For the purposes of articles 11 and 12, a notice of intent, in relation to a generating station, is a notice which—

(a)meets the requirements specified in paragraphs (2) and (3),

(b)contains the declarations specified in paragraph (4), and

(c)is accompanied by the documents specified in paragraph (5).

(2) The requirements specified in this paragraph are that the notice—

(a)is in writing,

(b)states the name and address of the person submitting the notice,

(c)states that it is being submitted as a notice of intent for the purposes of article 11 or 12,

(d)identifies the location, or proposed location, of the station to which the notice relates,

(e)confirms that the person submitting the notice is a person who proposes to construct or operate the station to which the notice relates, or a person who is arranging for the construction of the station, and

(f)confirms that the station is not yet commissioned.

(3) The requirements specified in this paragraph are that each declaration contained in the notice in accordance with this article must—

(a)be signed by an appropriate individual, and

(b)state that it is made to the best of that individual’s knowledge and belief.

(4) The declarations specified in this paragraph are—

(a)a declaration that following receipt of the confirmation referred to in paragraph (9)(b)—

(i)the person submitting the notice will have access to sufficient resources to commission the station, and

(ii)the station is expected to be commissioned on or before 31st March 2017; and

(b)in the case of a station that is not, or is not intended to be, an offshore generating station, a declaration that the person submitting the notice (or a person connected with that person within the meaning of section 1122 of the Corporation Tax Act 2010(14))—

(i)owns the land on which the station is, or is to be, situated,

(ii)has entered into an agreement to lease the land on which the station is, or is to be, situated, or

(iii)has an option to purchase or to lease the land on which the station is, or is to be, situated.

(5) The documents specified in this paragraph are—

(a)subject to paragraph (6), a copy of—

(i)an offer from a network operator (“the relevant network operator”) to carry out grid works in relation to the station (“the relevant grid works”); and

(ii)a document written by, or on behalf of, the relevant network operator which estimates or sets a date for completion of the relevant grid works which is no later than 31st March 2017;

(b)subject to paragraph (7), a copy of the planning permission for the station; and

(c)in the case of a station that is, or is intended to be, an offshore generating station, documents demonstrating that the person submitting the notice (or a person connected with that person within the meaning of section 1122 of the Corporation Tax Act 2010) has entered into an agreement with the Crown Estate Commissioners for lease of the seabed where the station is, or is to be, situated.

(6) Paragraph (5)(a) does not apply if the notice contains a declaration that no grid works are required in order to commission the generating station.

(7) Paragraph (5)(b) does not apply if the notice contains a declaration that planning permission is not required for the generating station.

(8) Where the Authority is satisfied that a notice—

(a)meets the requirements specified in paragraphs (2) and (3),

(b)contains the declarations specified in paragraph (4),

(c)was accompanied by the documents specified in paragraph (5), and

(d)was received by the Authority on or before the relevant date,

the Authority must give the information specified in paragraph (9) to the person who submitted the notice.

(9) The information specified in this paragraph is—

(a)the date on which the notice of intent was received by the Authority, and

(b)confirmation that the Authority is satisfied that the notice is a notice of intent for the purposes of article 11 or 12.

(10) In this article—

“appropriate individual”, in relation to a notice, means—

“offshore generating station” means a generating station which generates electricity from wind and which—

“offshore waters” has the same meaning as in the Renewables Obligation Order 2009(16); and

“planning permission” means—

(11) For the purposes of paragraph (2)(a), a notice that is “in writing” includes a notice that is submitted to the Authority by electronic mail, facsimile or similar means which are capable of producing a document containing the text of the notice.

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes provision for no renewables obligation certificates to be issued under a renewables obligation order in respect of electricity generated after 31st March 2017 unless the electricity is generated in any one or more of the circumstances provided for in the Order.

The circumstances set out in articles 4 and 5 relate to certain electricity generated by stations accredited on or before 31st March 2017.

The circumstances set out in article 6 relate to certain electricity generated by stations accredited on or before 31st March 2018 which experience a delay in their commissioning until after 31st March 2017 due to certain grid works or radar works.

The circumstances set out in article 7 relate to certain electricity generated by stations accredited on or before 31st March 2018 in respect of which an investment contract has been made and subsequently ceased to have effect by reason of certain specified events.

The circumstances set out in articles 8 and 12 relate to certain electricity generated by certain stations accredited on or before 30th September 2018 that have for at least one month generated electricity only using biomass. Article 12 relates to those stations that were certified under the Combined Heat and Power Quality Assurance Standard before a particular date, and in respect of which the documents and information specified in article 13 were provided to the Authority on or before 31st October 2014 (or, if later, two months after the Order comes into force).

The circumstances set out in articles 9 and 10 relate to certain electricity generated by certain offshore wind generating stations, where the stations are situated in waters in or adjacent to Scotland or in any part of a Renewable Energy Zone in relation to which Scottish Ministers have functions(22), and where the stations were accredited on or before 30th September 2018.

The circumstances set out in article 11 relate to certain electricity generated by certain offshore wind, gasification or pyrolysis generating stations accredited on or before 31st March 2018, in respect of which the documents and information specified in article 13 are provided to the Authority on or before 31st October 2014 (or, if later, two months after the Order comes into force).

An explanatory memorandum is available alongside this Order on www.legislation.gov.uk. An impact assessment has not been produced for this Order.