Renewable Obligation Certificates or ROCs for short is the name given to the digital certificates which holds details of exactly how a unit of electricity was made, by whom and finally who bought and used it. These ROCs are traded separately to the actual electricity itself and work as a bonus premium on top of the price paid for the unit.

Energy Companies are now being required to generate a minimum of 10% of their electricity output from sustainable sources. If they have not managed to produce the required amount of green energy themselves they must buy ROCs on the open market to make up the shortfall. If they fail to buy the required amount fines can be imposed.

ROCs are good news for renewable energy as they ensure a certain minimum percentage of Green Energy is produced nationally and provide the financial incentive to encourage generators to invest in Renewable Energy Schemes of their own.

Links:
Green Electricity