Which tariff bands will be linked to pricing under the RO?
Those tariffs for sizes up to 5MW for most RO-eligible technologies.
This approach applies to the hydro band 2-5MW and the wind band 1.5-5MW.
However, the same does not seem to apply for PV, where the government said on their decision document following the Phase 2A review:
Although the majority of respondents to the consultation indicated a preference for the approach to degression to change once tariffs reach the financial equivalent of two Renewable Obligation Certificates [the support for solar PV under the RO], our updated analysis of PV installation costs suggests that a rate of return of nearly 8% can be achieved for large scale PV installations for a tariff considerably lower than 2 ROCs.
We have therefore decided that the degression mechanism should continue to operate when tariffs reach the equivalent of 2 ROCs, to minimise the risk of investor overcompensation and to limit the total cost of FITs support.
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