Cap & Trade or Carbon Taxes

This is an excellent document from the U.K. that sounds a lot like Cap & Trade with Carbon Taxes.  Just replace Cap & Trade with RO’s and ROC’s and CCL.   This system is being promoted by many of the political parties here in Canada during this federal election.   


 I  especially like this reference:

 It is important to emphasise, therefore, that  those responsible for taking decisions within the planning system should not assume that incentivisation within the RO is an indicator of quality, or, though this may seem paradoxical, of the technology’s suitability for the purpose of meeting the aims of the UK’s renewable energy and climate change policy.” 
Again on page  pg 3 of this document:   

All companies generating power from accredited renewable sources are issued with Renewable Obligation Certificates by Ofgem. One MWh of electricity entitles the generator to one ROC. When the renewable generator sells electricity to the supplier it is common, though not necessary, to sell the ROC too. 


Because the ROC can save the supplier from having to pay a fine it adds to the price of the electricity. 

 The ROC is also worth something extra because it entitles the supplier to a share of the“buy-out” fines at the end of the year.



Thus, we can see that a renewable energy power station has two sources of income:

1. the price of the electricity they generate,

2. the price charged for the ROCs which they sell on to suppliers.



It’s funny how Minister Smitherman (Minister of Energy in Ontario) missed the U.K. in his recent travels to Europe with regards to renewable energy. I agree Minister that Ontario can do more, but does it have to be at the expense of rural residents health, safety and all of Ontario taxpayers pocket books?   


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