Energy Act 2004

Energy Act 2004

2004 CHAPTER 20

Commentary on Sections

Part 2: Sustainability and Renewable Energy Sources

Chapter 4: Renewables Obligations Relating to Electricity

Section 120: Issue of green certificates in Northern Ireland

276. Section 120 relates to the issue of NIROCs under the Energy (Northern Ireland) Order 2003 and amends that Order accordingly. The section defines Northern Ireland for the purpose of the issue of NIROCs as excluding the territorial sea adjacent to Northern Ireland. This avoids overlap between GEMA’s role and that of the Northern Ireland Authority for Energy Regulation (“NIAER”) in respect of electricity supplied to customers in Northern Ireland, by providing that NIAER will issue NIROCs for generating stations located in Northern Ireland (including its inland waters but not UK territorial waters adjacent to Northern Ireland). GEMA will issue ROCs under the Electricity Act in respect of electricity produced by all other generating stations (including electricity supplied to customers in Northern Ireland).

277. The section also inserts a new provision providing for arrangements to be made for the sale of NIROCs, relating to electricity supplied under the non fossil fuel regime as applicable to Northern Ireland, separately from that electricity. Without this provision, Great Britain suppliers are unlikely to participate in auctions of NIROCs with the underlying electricity since they would have no use for the electricity which currently cannot in practice be exported from Northern Ireland to Great Britain because of interconnector limitations. This provision therefore puts all UK electricity suppliers on an equal footing in respect of such NIROCs, and at the same time improves the liquidity of the market in any competitive auction or other sale process for those NIROCs.

278. The section also allows the Department of Enterprise, Trade and Investment in Northern Ireland (“DETI”) to direct the application of the proceeds of such sale.