The first ever auction of Renewable Obligation Certificates (ROCs) shows that their value has continued its upward trend as the shortage of renewable power in Britain begins to bite. An average price of £47.13 was paid by five bidders for ROCs auctioned by the Non-Fossil Purchasing Agency Scotland in October. The 85,404 ROCs were from renewable generating stations holding contracts under the Scottish Renewables Order (SRO) -- Scotland's equivalent to the NFFO in England and Wales. Under the UK's new support mechanism, the renewables obligation, electricity retailers (suppliers) are required to buy renewable energy or ROCs equivalent to 3% of their electricity in 2002, rising to 10% in 2010. A shortage of renewable capacity has pushed up the price of ROCs. In an auction of NFFO output in August, the average price was £65/MWh. Discounting the £16 wholesale electricity and £4.30 climate change levy exemption values, revealed a ROC value of around £44.70 -- significantly lower than the latest auction price.
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