101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 131 Before 29 March 2019 Renewable Electricity Support Schemes support low-carbon electricity generation in Great Britain under the Feed-in Tariffs and Contracts for Difference schemes, and UK- wide under the Renewables Obligation. Feed-in Tariffs Scheme and Contracts for Difference - green import exemptions The Feed-in Tariffs Scheme and the Contracts for Difference scheme are funded by a compulsory levy (that is, fee) on electricity suppliers, calculated in proportion to their market share of the GB electricity supply market. The relevant legislation sets out that electricity supplied in Great Britain is excluded from the calculation of the levy if it complies with certain criteria (referred to in this note as ‘green import exemptions’ in the Feed-in Tariffs Order 2012 and the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015). One criterion is for the electricity to be generated in an EU country ‘other than the United Kingdom’ – which generators can demonstrate with Guarantees of Origin certificates. Renewables Obligation – sustainability requirements for bio liquids, and solid and gaseous biomass The Renewables Obligation supports the generation of renewable electricity in the UK. To receive support, stations using certain bio liquids as a fuel must demonstrate that the bio liquid complies with strict sustainability requirements on land use and greenhouse gas savings, in line with the EU’s Renewable Energy Directive. UK-driven sustainability requirements apply to solid and gaseous biomass. After March 2019 if there’s no deal The government will continue to apply all requirements under both the Feed-in Tariffs Scheme and Contracts for Difference schemes and the Renewables Obligation. Implications Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions: the government will amend the relevant legislation to remove references to the UK as an EU country. Draft Regulations w ere published on 3 July 2018. The schemes’ administrators (Ofgem for the Feed-in Tariffs scheme, and the Low Carbon Contracts Company for the Contracts for Difference scheme) will continue to engage with electricity suppliers to inform them of their ongoing obligations under the levies funding the schemes, as well as the current relief schemes which are available to eligible energy intensive industries. Renewables Obligation – sustainability requirements: the current sustainability requirements under the Renewables Obligation will continue to apply for bio liquids, solid and gaseous biomass. Actions for businesses and other stakeholders Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions: electricity suppliers, consumers or any other interested parties will not need to take any action. Renewables Obligation – sustainability requirements: EU and UK fuel suppliers, renewable electricity generators or consumers will not need to take any action.