Existing system favoured, Continuing NFFO

Retaining the concept of the existing non-fossil fuel obligation (NFFO) is emering as the policy option most favoured by the Sustainable Energy Roundtable, an informal grouping of British trade associations. The group's consensus is for continuation of a process similar to NFFO -- the government's system of renewables support. This would be for renewable technologies that are not yet economic enough to compete unaided in the post 1998 deregulated electricity market.

Two other policy options were considered in depth by the group but were dropped. They were an obligation on electricity suppliers or generators to buy a percentage of their electricity supply from renewables -- with tradable "renewable credits," and a standard premium pricing system similar to that for renewable energy in Germany and Denmark.

Still to be determined by the round table is its policy for green power technologies that are already competitive. Some renewables,. such as energy from waste and landfill gas, have converged with the market price for electricity and no longer need the prop of NFFO subsidies. Contracts of known price and length are more important than subsidies for these technologies. Many in the round table feel that this could be achieved by some form of "open band" within a NFFO type system.