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