Industry News Roc Prices

Industry News Roc Prices

ROCs Prices

As the effects of the Covid-19 pandemic have had consequences on our daily lives, renewable generators have not been unaffected either. ROCs prices at the monthly auction peaked back February, but have been in decline since then, with prices dropping over £4 in recent months. The reason for this is a simple case of supply and demand; electricity demand has fallen as much as 60% within the commercial supply sector due to the lock down. This basically means fewer ROCs are required by power companies as they are selling reduced quantities of electricity.

Added to this, wind and hydro generators recorded record levels of production in February, while solar generators have had higher than normal generation in April and May. This does not help a market that is likely to be oversupplied with ROCs. One of Ofgem’s tasks is setting the obligation level for power companies – the quantity of ROCs they must purchase per unit of electricity sold. While the 2020/21 obligation levels have been set, it will be important that the level is judged appropriately for the 2021/22 period to ensure stability in the ROCs market. However, we should all remember that combined with a competitive PPA, renewable generators are still seeing returns 20-30% higher than five years ago. In the current economic climate that is certainly something to smile about!