Provide long term certainty for investors through electricity market reform and a managed transition from the Renewables Obligation.
The Renewables Obligation (RO) is designed to encourage generation of electricity from eligible renewable sources in the United Kingdom.
The Orders detail Ofgem's powers and functions to administer the Renewables Obligation.
The Renewables Obligation represents the UK Government's main policy measure for stimulating the growth of electricity generation from renewable sources.
A review of the performance of the Renewables Obligation was announced in the 2003.
The Government announced its intention to reform the Renewables Obligation in 2006.
Reforms of the Renewables Obligation since its introduction in 2002 have aimed to address these issues.
Despite the reforms to the Renewables Obligation detailed above, some risks, such as uncertainty over future electricity prices, remained.
Over the last three reporting periods for the Renewables Obligation, nearshore windfarms like the London Array have an average capacity factor of 27%.
This was introduced to try to depend more on renewable sources following the introduction of the Kyoto Protocol and, in April 2002, the Renewables Obligation.