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Overview:

This document provides generators using biomass and waste fuels with draft guidance

on how to meet the fuel measurement and sampling requirements of the RenewablesObligation. It details the requirements of the legislation, what we expect from

generators, and suggestions on how generators can best meet these requirements. It isnot intended to be a definitive legal guide.

This document is an update of guidance 57/07 (published 29 March 2007) to encompass

the latest round of reforms to the Renewables Obligation Order which take effect from 1

April 2009.

Date of publication: 19 December 2008

Deadline for response: 9 February 2009

Target audience:This document may be of interest to generators

using biomass and/or waste fuels, trade associations, fuel suppliers andother interested parties.

Contact name and details: Jonathan Blagrove- Manager Renewables Team

Biomass, Co-firing and Waste

Tel: 020 7901 7094

Email: [email protected]

Team: Regulatory Services

Document type: DRAFT Guidance

Ref: 170/ 08

Renewables Obligation: DRAFT Fuel Measurement andSampling Guidance

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Renewables Obligation: Draft Fuel Measurement and Sampling Guidance December2008

Office of Gas and Electricity Markets

Context

The Government's aim is that renewable energy will make an increasing contribution

to energy supplies in the UK, with renewable energy playing a key role in the wider

Climate Change Programme.

The Renewables Obligation, the Renewables Obligation (Scotland) and the Northern

Ireland Renewables Obligation are designed to incentivise renewable generation intothe electricity generation market. These schemes were introduced by the then

Department of Trade and Industry, the Scottish Executive and the Department ofEnterprise, Trade and Investment respectively and are administered by the Gas and

Electricity Markets Authority (whose day-to-day functions are performed by Ofgem).

The schemes are provided for in secondary legislation.

The first Renewables Obligation Order came into force in April 2002, as did the firstRenewables Obligation (Scotland) Order. These Orders were subject to review in

2004, 2005 2006 and 2007, and in 2008 for Scotland. The first RenewablesObligation Order (Northern Ireland) came into force in April 2005. New Orders came

into force on 1 April 2005, 1 April 2006 and 1 April 2007. The Renewables Obligation

Order (Northern Ireland) 2007 was amended on 19 October to allow for its continuedeffective operation within the new Single Electricity Market arrangements for the

island of Ireland with effect from 1 November 2007. All three Orders will be replaced

with new Orders on 1 April 2009, which introduce banding and grandfathering andother changes to the Renewables Obligation.

The Orders place an obligation on licensed electricity suppliers in England and Wales,

Scotland, and Northern Ireland respectively to source an increasing proportion of

electricity from renewable sources. Suppliers meet their obligations by presentingsufficient Renewables Obligation Certificates ("ROCs") to cover their obligations.

Where suppliers do not have sufficient ROCs to meet their obligation, they must payan equivalent amount into a fund, the proceeds of which are paid back on a pro-rated basis to those suppliers that have presented ROCs.

In particular, this guidance has been updated to reflect a number of changes made

as part of the reform of the Renewables Obligation, some of which have beendesigned specifically for fuelled stations. The introduction of banding and

grandfathering will have a significant impact on the number of ROCs that canpotentially be claimed by fuelled generators, and this will in turn have a major

bearing on the workings of the Obligation as a whole.

This draft guidance document has been written on the basis of the draft Renewables

Obligation Order 2009, published by the Department for Energy and Climate Change

on 2 December 2009, and the Government response to the statutory consultation onthe draft Renewables Obligation Order 2009, also published on 2 December 2009.Readers should be aware that some Articles within this document have been referred

to as Article {X}" reflecting both the draft Order in its current form and the formal

Government response.

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Readers should be aware of the following documents which support this publication.

These documents are available on our website at www.ofgem.gov.uk.

Renewables Obligation : guidance for generators over 50kW

Renewables Obligation : guidance for generators under 50kW

Renewables and CHP Register User Guide

Fuel measurement and sampling questionnaire

Associated Documents
http://www.ofgem.gov.uk/http://www.ofgem.gov.uk/

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Table of Contents

Context ............................................................................................... i Summary ........................................................................................... 6

Our role under the Renewables Obligation ................................................... 6This guidance document ........................................................................... 7Queries .................................................................................................. 7

Consultat ion summary ....................................................................... 9 Consultation on guidance for the Renewables Obligation with respect to fuel

measurement and sampling ......................................................................... 9Background ............................................................................................ 9Areas of administrative change due new legislation ...................................... 9Consultation response .............................................................................10

1. Introduction ................................................................................ 12 The nature of the legislation .....................................................................12

Our approach ............................................................................................12Open and consistent ...............................................................................12Legislative and administrative changes ...................................................... 13

This guidance document .............................................................................13Queries .................................................................................................13

2. El ig ibi lity ..................................................................................... 14 The definitions of biomass, waste, and co-firing ............................................. 14Biomass ...................................................................................................14Fuel that can treated as biomass ..................................................................14

100% biomass .......................................................................................14Waste ......................................................................................................15Co-firing and co-fired ROCs .........................................................................15

Standard and co-fired ROCs ................................................................15Eligibility for claiming co-fired ROCs according to the use of fossil fuel or wastefor Article 27 purposes ............................................................................16Generating stations relying on Article 27 .................................................. 16Generating stations not relying on Article 27 ............................................. 16

Redemption of standard and co-fired ROCs ................................................ 17Eligibility for stations using waste .................................................................17

Article 24 (1) (a) ....................................................................................17Advanced Conversion Technologies .........................................................17Combined Heat and Power Quality Assurance programme ........................... 18Liquid fossil fuel ....................................................................................18Solid Recovered Fuel (SRF) ....................................................................18

Article 24 (c) .........................................................................................18Eligibility of specific fuels ............................................................................19Generating stations fuelled by peat ...........................................................19Calculating the number of ROCs issued .........................................................19Eligibility for claiming CHP ROCs ..................................................................19

The amount of CHP ROCs to be issued .......................................................19Energy Crops ............................................................................................20

Definition ..............................................................................................20Interpretation ........................................................................................20Energy crops grown overseas ...................................................................20

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The timeframe for submitting a sustainability report ....................................... 39Incomplete and overdue sustainability reports ............................................... 39Information that is not available ..................................................................40Audit ........................................................................................................40

5. Submitting in formation ............................................................... 41 Fuel measurement and sampling plans ...................................................... 41Fuel Maintenance ...................................................................................41Fuel Approval .......................................................................................41

Monthly data..........................................................................................42Statistical accuracy .................................................................................42Rounding ..............................................................................................43Clear and accurate information .................................................................43Electronic Information .............................................................................44Using the Renewables and CHP Register .................................................... 44

Appendices ...................................................................................... 45 Appendix 1 The Authoritys Pow ers and Duties ............................ 46

Certain statutory guidance on social and environmental matters issued by the

Secretary of State. .................................................................................47Appendix 2 Generation types ........................................................ 48 Appendix 3 Grandfathering provisions flow diagram .................... 54 Appendix 4 Banding provis ions flow diagram ............................... 55 Appendix 5 Stock level indicator template .................................... 59

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Renewables Obligation: Draft Fuel Measurement and Sampling Guidance December 2008

Summary

This document provides guidance to fuelled generating stations that wish to benefit

from the Renewables Obligation. It sets out those renewable source technologies and

fuels that are likely to be eligible to receive support under the Renewables ObligationOrder 2009, the Renewables Obligation (Scotland) Order 2009 and the RenewablesObligation Order (Northern Ireland) 2009 (the Orders), the level that this support will

be at and how fuelled generating stations can meet the requirements of thelegislation.

It has been updated since it was last published in March 2007 to take into account

changes made to the legislation that will take effect in April 2009. Due to the

extensive revisions to the Order and Ofgem's adoption of our online process foraccreditation and ROC issue, this document has been altered in each section rather

than dedicating a specific section to the changes.

The RO was subject to review during 2008-2009. This review was undertaken by theDepartment of Energy and Climate Change (DECC) the Scottish Executive and the NI

Department of Enterprise, Trade and Investment (DETI). Unless specifically

identified, reference to the review should be taken to encompass the reviewundertaken by all three departments.

Unless apparent from the context, where "RO" is used it denotes the RO, ROS andNIRO and where "ROC" is used it denotes ROCs, SROCs and NIROCs. The use of

'Ofgem', 'us', 'our' and 'we' are used interchangeably when referring to the exerciseof the Authority's powers and functions under the Orders. The term "the Act" refers

to the Electricity Act 1989 (as amended). This is the primary legislation from which

the RO and ROS were borne. Changes made via the Energy Act 2008 have given thegovernment the enabling powers to introduce the differential rewards that have

fundamentally changed the ROC reward structure.

Our role under the Renew ables Obligation

The Renewables Obligation Order (RO) and the Renewables Obligation (Scotland)

(ROS) Order detail Ofgem's powers and functions in respect of the Renewables

Obligation in England and Wales and in Scotland respectively. Those functionsinclude:

accrediting generating stations as being capable of generating electricity from

eligible renewable energy sources

issuing Renewable Obligation Certificates (ROCs), Scottish RenewableObligation Certificates (SROCs)

establishing and maintaining a register of ROCs and SROCs

revoking ROCs and SROCs where necessary

monitoring compliance with the requirements of the Orders

Office of Gas and Electricity Markets 6

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calculating annually the buy-out price resulting from the adjustments made to

reflect changes in the RPI

receiving buy-out payments and redistributing the buy-out fund

receiving late payments and redistributing the late payment fund

recovering the administration costs of the RO from the buy-out fund

publishing an annual report on the operation of and compliance with the

requirements of the Orders

publishing sustainability details for those stations utilising biomass fuels

We carry out these functions as efficiently and effectively as possible according to

the provisions of the Orders. We cannot act beyond the scope of the powers laiddown in the Orders. For example, we have no remit over the operation or regulation

of the ROC market itself. Amendments to the relevant legislation in respect of theRenewables Obligation are a matter for the Secretary of State, Scottish Ministers and

the Secretary of State for Northern Ireland.

We administer the Northern Ireland Renewables Obligation (NIRO) on behalf of the

Northern Ireland Authority for Energy Regulation (NIAER) under an Agency Services

Agreement. Under this agreement the Authority is required to carry out the functionslisted above in respect of Northern Ireland Renewables Obligation Certificates

(NIROCs). However the NIAER continues to retain legislative responsibility for theNIRO.

This guidance document

This document describes our procedures for the implementation of the RO for fuelledgenerating stations. It is intended to be a working document and may be updated

from time to time. It replaces our Fuel Measurement and Sampling Guidance which

we published in March 2007, and reflects changes to the legislation in 2009.

The document does not purport to anticipate every scenario which may arise. Where

a scenario arises which is not addressed in these procedures, we will adopt anapproach consistent with the relevant legislation. Any separate guidance published in

addition to this document will be posted on our website. Notification of the guidancewill be sent by email to all accredited fuelled generators. This is a guidance

document only. It is not intended to provide comprehensive legal advice on how the

Orders should be interpreted.

Queries

All queries in relation to our functions under the Orders should be emailed to

[email protected] with the email clearly marked. Written queries should besent to the address on the front of this document clearly marked for the attention of

the Renewables Administrator.


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Consultation summary

Consultation on guidance for the Renewables Obligation w ith

respect to fuel measurement and sampling

Background

This document contains our draft guidance on the Renewables Obligation (RO) for

fuelled generating stations. The document is based on our existing guidance but has

been updated to reflect the changes that are due to be introduced by the reform ofthe Renewables Obligation. These proposed changes have been published by the

Department of Energy and Climate Change (DECC) in a consultation decision

document1. The references within this document relate to the draft England and

Wales Renewables Obligation Order2. At the time of writing the Scottish Executiveand Northern Irish Authority are still in the consultation process, we have therefore

based this document on the assumption that all their proposed changes will be

adopted.

Should there be further changes to the legislation before its introduction on 1 April2009 we will revise our guidance to reflect this, however we may not have the

opportunity to consult again on these changes.

We are consulting on the content of this document in order to ensure that our

interpretation of the new legislation is clear to industry.

Question 1: Do you feel that this guidance document accurately represents the draft

legislation? If not, where do you feel this document needs reviewing?

Question 2: Do you feel that this document achieves a balance of practicality whilst

adhering to the legislation? If not, where do you feel this balance could be betterachieved?

Question 3: Are there any specific areas that you think require further guidance? If

so which areas and what would you wish to see?

Areas of administrative change due new legi slation

The changes to the RO centre on the introduction of reward differentials throughbanding and grandfathering which will impact on all stations. These differentials are

1http://www.berr.gov.uk/consultations/page46710.html2http://www.berr.gov.uk/files/file49197.pdf
http://www.berr.gov.uk/consultations/page46710.htmlhttp://www.berr.gov.uk/consultations/page46710.htmlhttp://www.berr.gov.uk/files/file49197.pdfhttp://www.berr.gov.uk/files/file49197.pdfhttp://www.berr.gov.uk/files/file49197.pdfhttp://www.berr.gov.uk/consultations/page46710.html

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based on the technology used by the station, the fuelling, the commissioning date

and the capacity installed. These will determine the number of ROCs issued for eachMegawatt of eligible electricity a station generates.

The introduction of banding and grandfathering will mean that it will be possible forone station to receive ROCs under different bands, either through increases incapacity or the combination of fuels used within a month.

For fuelled stations, the reform of the RO will in particular result in changes to theway that generators can seek to agree fuel measurement and sampling procedures

when using certain types of waste. The reform of the RO will also see theintroduction of sustainability reporting for generators using biomass fuels and the

introduction of specific provisions to account for generators using Solid Recovered

Fuel (SRF).

Question 4: Do you feel that the information provided in chapter 3 of this documentprovides sufficient information to guide generators designing fuel measurement and

sampling procedures for waste fuels with a fossil fuel content of less than 50 percent? If not, what further information would you wish to see included?

Question 5: Do you feel that the information provided in chapter 4 of this documentclearly sets out the requirements for generators to provide Ofgem with information

on the sustainability of the biomass fuels they use? If not, what further informationwould you wish to see included?

Consultation response

Responses should be received by 09 February 2009 and should be sent to:

Jonathan Blagrove

Manager, Renewables Team, Biomass, Co-firing and Waste9 Millbank

London, SW1P 3GE

020 7901 7094

[email protected]

Unless marked confidential, all responses will be published by placing them inOfgems library and on its website www.ofgem.gov.uk. Respondents may request

that their response is kept confidential. Ofgem shall respect this request, subject to

any obligations to disclose information, for example, under the Freedom ofInformation Act 2000 or the Environmental Information Regulations 2004.

Respondents who wish to have their responses remain confidential should clearly

mark the document/s to that effect and include the reasons for confidentiality. Itwould be helpful if responses could be submitted both electronically and in writing.

Respondents are asked to put any confidential material in the appendices to theirresponses.

mailto:[email protected]:[email protected]

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1. Introduction

Chapter Summary

This Chapter explains why we have produced this guidance and our approach to fuelmeasurement and sampling.

1.1. This guidance explains the fuel measurement and sampling (FMS) requirementsfor biomass, co-fired and waste generating stations under the Renewables Obligation

(RO).

1.2. This guidance applies to England and Wales, Scotland and Northern Ireland.

Where used in this document, the term "RO" refers to the Renewables Obligation,

the Renewables Obligation (Scotland) and the Northern Ireland Renewables

Obligation. Similarly, the term "the Orders" is used to describe The RenewablesObligation Order 2009, The Renewables Obligation Order (Scotland) 2009 and TheRenewables Obligation Order (Northern Ireland) 2009. The term "ROCs" refers to

Renewable Obligation Certificates (ROCs), Scottish Renewables ObligationCertificates (SROCs) and Northern Ireland Renewable Obligation Certificates

(NIROCs).

The nature of the legislation

1.6. Some areas of the legislation are prescriptive, others give us discretion. Where

the legislation is prescriptive, this guidance will help generators understand what werequire. Where the legislation gives us discretion, the document gives guidance as to

how we will exercise that discretion. It also explains what we need, practically, from

generators, to enable them to meet these requirements.

Our approach

Open and consistent

1.7. Throughout our work in this area we aim to take an open and consistentapproach. We believe that this approach manifests itself through a number of steps

including:

1. The publication of this guidance, providing all generators with access to examplesof good practice.

2. The provision of a standard template for generators to complete when describingtheir proposed FMS procedures. By using this tool we can assess all procedures on

the same basis.


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3. Consultation with stakeholders on important issues. For example, we support the

work of and are available to contribute to the Biomass Working Group.

4. Developing standard templates for fuel-specific calculations. For example, weprovide a template for determining the amount of biomass and fossil fuel in a liquid

mixture using the marker method and will develop additional templates of this nature

where the need arises.

Legislative and administrative changes

1.8. With a widely reformed Renewables Obligation Order due to come into effect on

1 April 2009 and with other developments, we have needed to make a number ofchanges to our administrative processes. As the legislation continues to evolve

and/or our administrative processes are developed further, we will do our best to

inform generators of the changes and the impact they are likely to have. It should beappreciated, however, that the onus is on generators to ensure that they are

complying with the legislation. Generators who are in any doubt should seekindependent legal advice.

This guidance document

1.12. This is a guidance document only. At all times, the onus is on the operator of a

generating station to ensure that it is aware of the requirements of the Orders. It isnot intended to provide comprehensive legal advice on how the Orders should be

interpreted.

1.13. In instances where parties other than registered holders are involved in the RO

(for example data collectors for the provision of providing monthly information), theoperator of the generating station is responsible for ensuring any guidance is

distributed accordingly.

Queries

1.14. All queries in relation to our functions under the Orders should be emailed if

possible to [email protected] with the email clearly marked. Written queries

should be sent to the address on the front of this document clearly marked for theattention of the Renewables Administrator.


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2. Eligibility

Chapter Summary

This Chapter sets out the eligibility criteria for certain types of fuelled stations,generation types and fuels under the RO. In particular this Chapter focuses on the

eligibility requirements for energy crops.

The definitions of biomass, waste, and co-firing

2.1. The definitions of biomass, waste and co-firing are fundamental to the

classification of fuelled stations and the issuance of ROCs to fuelled stations under

the RO.

Biomass

2.2. To claim ROCs for electricity generated from biomass, the fuel used will

ordinarily need to meet the definition of biomass in the Orders. To meet the biomassdefinition an individual fuel must have an energy content of at least 90 per cent that

is derived directly or indirectly from plant or animal matter.

Fuel that can treated as biomass

2.3. If less than 90 per cent of the energy content within an individual fuel is derived

directly or indirectly from plant or animal matter, it will not itself meet the biomassdefinition. However, if the fuel is one of two or more non-fossil fuels used at the

generating station in any month, and the combined energy content of these fuels is

more than 90 per cent plant or animal matter derived, then the combination of thesefuels can be treated as biomass.

2.4. Where a fuel is a fraction of a mixture of wastes that, taken as a whole, is itself

biomass (i.e. at least 90% of its energy content is derived directly or indirectly fromplant or animal matter) then that fuel is classed as biomass.

100% biomass

2.5. The term 100% biomass in this document refers to biomass material that is

100% biomass by energy content (and does not therefore derive any of its energyfrom fossil fuel or fossil fuel derived sources).


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Waste

2.6. Waste is defined in Article 2 (1) of the Orders. This refers to section 75(2) of the

Environmental Protection Act 1990 (b) definition of waste which describes waste as

including:

any substance which constitutes a scrap material or an effluent or other

unwanted surplus substance arising from the application of any process; and

any substance or article which requires to be disposed of as being broken, worn

out, contaminated or otherwise spoiled;

2.7. Where we refer to waste in this guidance we mean any fuel which meets thewaste definition in the Orders but does not meet the biomass definition and cannot

be treated as biomass.

2.8. Waste does not include a substance which is an explosive within the meaning of

the Explosives Act 1875.

Co-firing and co-fired ROCs

2.10. Co-firing is the term used to describe a generating station fuelled partly bybiomass and partly by fossil fuel as defined in Part 4 of the Orders. The definition

only applies to specific station configurations, as per Part 4 of the Orders. Moreinformation on the eligibility of fuelled stations according to their configuration is

given in Appendix 2.

Standard and co-fired ROCs

2.11. For the purpose of this section, we refer to two different classifications ofROCs: standard and co-firing. The relevance of being eligible to claim co-fired ROCs

is described later in this chapter.

2.12. To be issued standard ROCs in any month, the station must ensure that both:

biomass fuel burned meets the biomass definition or can be treated as biomass

under the Orders; and

any fossil fuel or waste burned meets Article 273 in the Orders (see below);

3Article {X} of the Draft Renewables Obligation (Scotland) Order 2009 refers

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And at least one of the following criteria must be met:

the station was first commissioned on or after 1 January 1990; or

the station was first commissioned before 1 January 1990 and has renewed itsmain components (including all boilers and turbines); or

the station meets the requirements of Article 19 (2)4.

Eligibility for claiming co-fired ROCs according to the use of fossil fuel or

waste for Article 27 purposes 5

2.13. Any fossil fuel or waste used to generate electricity must always be accounted

for when calculating the number of ROCs to be issued. However, the reliance orotherwise of a generator on Article 27 will determine whether a station will be eligible

to receive co-fired ROCs or will be eligible to receive standard ROCs.

Generating stations relying on Article 27

2.14. Article 27 allows generating stations to use a certain amount (no more than

ten per cent of the total energy content of all fuels used at the generating station) offossil fuel or waste without this fossil fuel or waste impacting on the classification of

the ROCs to be issued. As well as the ten per cent limit on the amount of fossil fuel

or waste used, Article 27 also specifies that the fossil fuel or waste can only be usedfor certain purposes as follows:

the ignition of gases of low or variable calorific value;

the heating of the station's combustion system to its normal operatingtemperature or the maintenance of the temperature;

emission control;

standby generation or the testing of standby generation capacity

Generating stations not relying on Article 27

2.15. Where a generating station use either fossil fuel or waste for a purpose other

than those listed under Article 27 and/or where the total energy content of the fossilfuel or waste used at a generating station in any month exceeds ten per cent of the

4Article {X} in the Draft Renewables Obligation (Scotland) Order 2009 and Article {X} in the Draft

Renewables Obligation Northern Ireland Order 2009 refer5

Article {X} in the Draft Renewables Obligation (Scotland) Order 2009 refers

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total energy content of all the fuels used at the generating station in that month, the

generator will be eligible to claim co-fired ROCs.

Redemption of standard and co-fired ROCs

2.16. In meeting its renewables obligation, there is a limit to the number of co-firing

of biomass with fossil fuel (co-fired) ROCs that a supplier may present. For obligationperiods between 1 April 2009 and 31 March 2010 no more than 10 per cent of a

supplier's total obligation can be met by the redemption of co-firing of biomass withfossil fuel (co-fired) ROCs6. For obligation periods after this point, no more than 12.5

per cent of a supplier's total obligation can be met by the redemption of co-firing ofbiomass with fossil fuel (co-fired) ROCs7.

2.17. Generators should note that the only classifications of ROCs that falls withinthe cap are those that are classed as co-firing of biomass with fossil fuel ROCs. The

cap does not therefore extend to ROCs that are issued for the co-firing of energy

crops with fossil fuel as per Article 14 (5) of the Order.

Eligibility for stations using waste

Article 24 (1) (a)

2.18. Article 24 (1) (a) effectively excludes generating stations from claiming anyROCs when using waste unless the station meets one or more of the following

criteria:

the waste by which it is fuelled in that month has been converted to a liquid orgas using an Advanced Conversion Technology (ACT);

it is a CHP generating station with CHPQA accreditation; or

the only waste(s) used are liquid fossil fuels (e.g. RFO) and/or solid recovered

fuel

Advanced Conversion Technologies

2.19. An Advanced Conversion Technology (ACT) can be gasification, pyrolysis or

anaerobic digestion and any combination of these. Definitions of these generation

types are given in Appendix 2.

6 Article 14 (4) of the Draft Renewables Obligation Order 2009 refers7 Article 14 (3) of the Draft Renewables Obligation Order 2009 refers

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Combined Heat and Power Quality Assurance programme

2.20. Please refer to the section entitled "Eligibility for claiming CHP ROCs" later in

this chapter for details of eligibility under the CHPQA programme. A generator must

be accredited under this programme in the same way as for claiming CHP ROCs,although the QPO/TPO ratios referred to in the "Eligibility for claiming CHP ROCs"section are not relevant when considering Article 24 (1)(a).

Liquid fossil fuel

2.21. Waste liquid fossil fuels can be used for generation provided they arecomprised wholly or mainly of hydrocarbon compounds. This includes Recycled Fuel

Oil (RFO).

Solid Recovered Fuel (SRF)

2.22. For the purposes of Article 24 (1) (a), SRF is defined as a substance that is:

prepared from non-hazardous waste as defined in Article 2 (1) of the Order andclassified using CEN/TS 153598;

has a maximum Respiratory Index (RI) value from point of production to point

of use of no greater than 1500 mg O2/kgVS/h;

has a maximum particle size of 150 mm

Article 24 (c)

2.23. Under Article 24 (1)(c), a station will be excluded in any month (and will nottherefore be eligible to claim any ROCs) where both a fossil fuel and any other fuel

(other than biomass) is used, unless that fuel is SRF which meets the definition ofSRF as per Article 2 (1). In practice, this means that a generating station will be

excluded if both fossil fuel and waste (except for SRF meeting the definition set outin Article 2 (1)) is used in the same month.

8 To receive a copy of this standard email [email protected]

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Eligibility of specific fuels

Generating stations fuelled by peat

2.24. Generating stations fuelled wholly or partly by peat are specifically excluded

under Article 24 (1)(d) of the Order.

Calculating the number of ROCs issued

2.25. The number of ROCs that can be issued to a fuelled generating station will

depend on the application of grandfathering provisions and the application of bandingaccording to the generation type and fuel mix that is used each month.

2.26. A flow diagram detailing the grandfathering provisions set out in Part 4 is

provided in Appendix 3, with further information on grandfathering available in ourlarge generator guidance document.

2.27. A flow diagram displaying the number of ROCs that will be issued according to

the generation type and fuel mix used at a station in a given month is given inAppendix 4.

Eligibility for claiming CHP ROCs

2.28. CHP generating stations wishing to claim CHP ROCs will need to be accredited

under the CHPQA programme before they can be issued ROCs. The CHPQA

programme is a scheme that AEA Technology operate on behalf of the Departmentfor the Environment, Food and Rural Affairs (Defra). A qualifying station will hold a

valid Secretary of State Combined Heat and Power Exemption Certificate 2 (SoSCertificate) and a CHPQA Certificate.

2.29. We will require a copy of the details of the station that are sent to AEATechnology annually for qualification under the CHPQA scheme. We will already be in

receipt of these details if a generator claims CHP Levy Exemption Certificates but ifwe are not already in receipt of these details, then consent for Defra to disclose

information about the station to us will be required.

The amount of CHP ROCs to be issued

2.30. The number of CHP ROCs issued to a station accredited under the CHPQA

programme will depend on the efficiency of that station. This will be determined bythe relationship between its qualifying power output (QPO) and the total power

output (TPO) as highlighted in Article 26 (2). The calculation of the qualifying power

output must be agreed directly with CHPQA who will provide Ofgem with the relevantQPO/TPO values in order for CHP ROCs to be issued.


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Energy Crops

Definition

2.31. The term energy crops is defined in Article2 (1) of the Orders as follows:

a plant crop planted after 31 December 1989 which is grown primarily for thepurpose of being used as fuel or which is one of the following-

(a) miscanthus giganteus;

(b) salix (also known as short rotation coppice willow);

(c) populus (also known as short rotation coppice poplar)".

2.32. If a generator uses any of the three crops listed there is no requirement to

meet any other part of the energy crop definition.

Interpretation

2.33. For all crops other than those specifically listed in Article 2 (1) of the Order, we

will require evidence that the rest of the definition is met. The first part of thedefinition is relatively straightforward: to meet the requirements of the Orders an

energy crop must be a plant crop planted after 31 December 1989.

2.34. The second part states that it must also be grown primarily for the purpose ofbeing used as fuel. This means that the main intended purpose, at (or, in exceptionalcircumstances, very shortly after) the time of planting for the crop must be for use

as fuel. Fuel can mean fuel used to generate electricity, transport fuel or fuel used

to generate heat.

2.35. Should a crop, at the time of planting, be being grown for a number ofpurposes (including for use as fuel) then the term 'grown primarily for the purpose'

means that the main purpose of the crop must be for use as fuel. In coming to aview on whether the main purpose for which a crop was planted was for use as fuel,

we will consider the proportion of the crop that is to be used as fuel. When looking at

the various proportions of a particular crop we will consider criteria such as energy

content, financial value, weight, volume, and acreage. Crops will be considered on acase-by-case basis and it will be for the generator concerned to provide thenecessary evidence to support its case.

Energy crops grown overseas

2.36. Crops grown overseas may be eligible as energy crops provided they meet thecriteria set out in the Order and this guidance.


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Evidence

2.37. We are looking for evidence to show that the farmers intention from the time

of planting (or in exceptional circumstances very shortly after) was to grow the crop

for use as fuel. The generator has the responsibility to provide us with sufficientevidence that the fuel that it is using is an energy crop, as defined under the Orders.

2.38. One piece of evidence that we will generally require will be contractual,

although this is by no means the only evidence that could be presented. A bindingcontract entered into at the time of planting is likely to be good evidence of an

intention to grow crops for fuel. However we realise that putting in place contracts atthe time of planting may cause difficulties for generators, given the potential lapse in

time between a crop being planted and that crop being harvested. We are also keen

that our requirements work alongside the Energy Aid Payments Scheme as far aspossible. Therefore, as an alternative to a binding contract at the time of planting we

will generally accept a letter of intent at the time of planting with a binding contract

in place by 15 May following planting. For consistency this date will apply irrespectiveof whether or not a crop is grown under the Energy Aid Payments Scheme. Decisions

on whether to accept letters of intent will be made on a case-by-case basis.

2.39. The final piece of evidence we are likely to require is to show that the cropswere sold under contract.

Letter of intent

2.40. We expect the letter of intent to be either directly between the generator andgrower, or a number of letters of intent to cover the full chain between generator

and grower.

2.41. A letter of intent should include:

the common and latin name(s) of the crop

the field(s) in which the crops will be grown

the expected yield

the price the grower will charge for the crop

the dates on which supply is expected to start and end

2.42. We will keep our policy of accepting letters of intent as opposed to bindingcontracts at the time of planting under review. We require letters of intent to be a

genuine reflection of a grower's intention. Letters of intent, unlike contracts will notbe required to be binding, but we will expect them to be followed through. If it

appears letters of intent are not generally resulting in binding contracts, and

ultimately crops are not being used for fuel, then we will reconsider our position.Similarly if a particular individual does not follow through on a letter of intent we are


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likely to require firmer evidence from them in following years to show that their

subsequent intention is genuine.

Binding contracts

2.43. We do not wish to be prescriptive about the content of contracts. However,

there are a number of areas that we will consider. It should be clear from thecontract that the crop was being grown for the purpose of being used as a fuel and,

in the case of a multi-purpose crop that the primary purpose for which the crop wasbeing grown was for use as a fuel. Contracts should detail what is being grown. Both

the common and latin names of the crop should be specified to limit the risk ofambiguity. The duration of the contract will also be relevant. Contracts in respect of

energy crops grown overseas should be translated into English where relevant.

2.44. Contracts in themselves are not automatic evidence that a crop is to be usedfor fuel. The contracts will need to be sufficiently binding to ensure that the crop will

actually be used as fuel and that there is no option for the crop to be used foranother primary purpose.

2.45. If the generator has a contract with a fuel processor then in addition to the

contract between the processor and the generator, we will also require access to the

contracts between the energy crops grower and the processor. Similarly if agenerator has a contract with a bulk supplier of energy crops then we will require

access to all the contracts between the growers and the bulk supplier.

2.46. For crops planted shortly after 1989, where an explicit contract may not havebeen signed at the time of planting, other evidence should be provided

demonstrating that the crop has been primarily grown for the purposes of being usedas fuel.

2.47. Although contractual evidence is stated as the main method by whichgenerators can meet the requirements of the legislation, other methods are not

excluded. Should a generator have other evidence to prove that a crop was anenergy crop, we would assess this against the requirements of the legislation, on a

case-by-case basis.

2.48. The Energy Aid Payments Scheme (in the EU) has similar requirements to theRO in relation to the provision of evidence that the crop is an energy crop to be used

primarily for fuel. We believe that if a crop satisfies these requirements, it is likely to

satisfy the requirements of the RO, provided equivalence is not being used (seebelow). We would however, require copies of contracts in the same way as we wouldrequire copies of contracts from generators/growers not participating in those

schemes. Inclusion in this scheme is not a prerequisite for a crop to qualify as anenergy crop under the RO.


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Multiple contracts/letters

2.49. Where a generator, bulk supplier or processor has multiple letters of intent or

contracts with farmers we will not generally require a copy of every single letter or

contract. Instead we will wish to select one example contract and the names,addresses and field locations of the crops for all the fuel suppliers that have beencontracted with. For generators to take advantage of this they will need to provide

assurance that we could easily access any one of these letters or contracts on audit.

Comfort Letters

2.50. The point at which we are required to make a decision on whether a crop is anenergy crop is when a generator claims ROCs for the electricity produced from

burning the crop. Generators may enter into contracts with growers a number of

years before the crop is mature enough for harvesting and burning. This potentiallycreates uncertainty for the generator as to whether Ofgem will consider the crop an

energy crop at the time of burning. In order to address this we may be prepared(upon receipt of satisfactory contractual evidence) to provide generators with non-

binding comfort letters.

Mass balance

2.51. The Renewables Obligation does not allow for a "mass balance". The crop

burned at the generating station must be the same physical crop as that referred toin the contract for it to qualify as an energy crop. Unlike the Energy Aid Payments

Scheme an equivalent amount of the same type of crop cannot be grown elsewhereand then used in place of the contracted crop.

Energy crops going through a process

2.52. Where energy crops and non-energy crops are mixed it is more difficult to work

out how much of what a generator uses is energy crops and how much is non-energycrops. For example, oil seed rape used to produce vegetable oil may be a mixture of

energy crop oil seed rape and non-energy crop oil seed rape.

2.53. In this circumstance we would issue energy crop ROCs (or co-firing of energy

crops with fossil fuel ROCs depending on the impact of Article 27 as described earlierin the chapter) according to the percentage of energy crop to non-energy crop oil

seed rape used to produce vegetable oil. For example, a vegetable oil plant mayproduce a batch of vegetable oil using 90% oil seed rape that meets the energy crop

definition and 10% oil seed rape that does not meet the energy crop definition. In

this situation we would issue energy crop/co-firing of energy crops with fossil fuelROCs for 90% of the vegetable oil used in the generating station and non-energy

crop/co-firing of biomass with fossil fuel ROCs for the other 10% of the vegetable oilused. We could not say that if a generator was taking 90% of the output of the

vegetable oil plant that they were taking the 90% that was energy crops. The

calculation will remain the same irrespective of whether the output from the process


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is the main product from the process e.g. vegetable oil or a by-product from it e.g.

oil seed rape meal.

2.54. To claim the percentage of energy crops as described above, generators that

use fuel that is a mixture of energy crops and non-energy crops will need contractualor other evidence to cover all the energy crop and non-energy crop fuel they intendto burn. For example, if a generator intends to burn 70 tonnes of a batch of

vegetable oil 90% of which is expected to be energy crops, the generator will need to

provide evidence for all 70 tonnes of vegetable oil.


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3. FMS - in principle and in practice

Chapter Summary

This Chapter explains the key principles behind fuel measurement and sampling andthe practicalities of agreeing fuel measurement and sampling procedures.

What is FMS?

3.1. A fuel measurement and sampling (FMS) procedure is the general term that we

use to describe the agreement with generators of suitable procedures for themeasurement and sampling of fuels in order to determine the amount of fuel burned

in a month, the energy content of the fuel and the level of any contamination in the

fuel. Whilst the term FMS procedures usually refers to the agreement of physical

measurement and sampling processes, it may also refer to the provision ofdocumentary evidence.

Why FMS?

3.2. We can only issue ROCs for electricity generated from renewable sources in a

given month. Article 269 of the RO sets out how to calculate the amount of electricitygenerated from renewable sources, and in the case of a generating station fuelled

partly by fossil fuel and partly by another fuel or fuels, the amount of electricity

generated from fossil fuel is determined according to the respective energy contentsof the fuels used in a particular month.

3.3. Energy content of a fuel means the gross calorific value (GCV) of that fuel (as

expressed per unit of weight or volume) multiplied by the weight or volume of that

fuel within the month of burn. Fuel measurement and sampling is usually needed fora generator to be able to provide this information.

When to submit FMS procedures

3.4. Generators need to submit new or revised FMS procedures when:

applying for accreditation or preliminary accreditation

using a new fuel at an existing accredited generating station

9Article {X} in the Draft Renewables Obligation (Scotland) Order 2009

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amending existing procedures (for example, if new measurement equipment is

being used at the station)

Accurate and reliable information

3.5. The fundamental principle of FMS is that the procedures allow a generator tofully meet the requirements of Article 37 (3) in the RO in that they will be able to

provide us with accurate and reliable information. We will work with generators asclosely as possible to ensure that a procedure meets this requirement, although it

should be clear that the onus for the design of suitable procedures lies with the

generator.

A case-by-case approach

3.6. We recognise that no single generating station is identical to another and thatdifferent generators can use different combinations and volumes of fuels, drawn from

different sources. For these reasons, our approach is always to agree fuelmeasurement and sampling procedures on a case-by-case basis, according to the

specific setup and conditions at each generating station.

The timeframe for agreeing FMS procedures

3.7. There is no set timeframe for the agreement of FMS procedures. Our aim is to

agree procedures that will enable generators to fully meet the requirements of the

legislation (by providing Ofgem with accurate and reliable information as set out in

Article 37 (3)). Given that the complexity of FMS procedures will vary greatly fromone station to the next, we do not set an arbitrary timeframe for the agreement of

procedures although clearly we aim to work closely with generators to make theprocess as efficient as possible.

The format of an FMS procedure

3.8. All procedures should be submitted as responses to the FMS proceduresquestionnaire which is available on our website (see associated documents) with

accompanying documentation if necessary.

3.9. Unless a generator will be using solely 100% biomass fuels, initial samplinganalysis of the fuel(s) should accompany the questionnaire. This will help us to

understand what information a generator is planning to submit each month to

support their ROC claims and whether this is likely to be appropriate for the fuel(s)being used.


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Using estimates

3.10. There are circumstances where it may be appropriate for a generator to use

estimates of either volume or energy content values. In these situations we will

assess whether the provision of estimates rather than actual measurements willallow a generator to fully meet the requirements of Article 37 (3) (the provision of

accurate and reliable information) and other factors, for example whether it is not inpractice possible for a generator to sample a fuel for its energy content. Where

estimates are used, we will always seek to err on the side of caution and take aconservative approach so as to ensure that ROCs are only issued for generation

attributable to renewable sources.

New and improved FMS procedures

3.11. We rely heavily on industry to lead the way in piloting new and improved FMS

procedures. Where we can, we are happy to assist generators in the development oftheir FMS procedures but ultimately we look to industry to utilise its expertise and

resources to continually improve FMS standards and set the benchmark for goodpractice.

Stations using only 100 per cent biomass fuels

3.12. Generating stations using only fuels that are 100% biomass (as described in

chapter 2 of this guidance) will not generally need to carry out fuel measurement

and sampling. This is because there is no need to determine what fraction ofelectricity generation is attributable to renewable sources and what fraction is

attributable to fossil fuel derived sources: where only 100 per cent biomass fuels are

used it is clear that all of the net electricity generated is attributable to renewablesources.

3.13. That said we need to be certain that each of the fuels being used are 100 per

cent biomass. Depending on the fuels used, this may be evidenced by the provisionof a suitably robust fuel specification by the generator for each fuel. Where

generators opt to purchase fuels on the spot market rather than by agreeing a long-

term contract with a fuel supplier, we will need the generating station to eitherconfirm in writing that they require all of the fuel suppliers they use to provide fuel

meeting this specification, or alternatively provide a separate specification for eachfuel. A sample fuel specification is provided at Appendix 5.

3.14. In other cases a generator may still need to perform some initial and possiblyperiodical sampling to demonstrate that no contamination is present within the

fuel(s).


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Weight or volume measurement in the month of burn

3.15. Measuring the weight or volume of biomass burnt in a month is needed to form

part of the ROC calculation. This means that the weight or volume of stocks carried

over from the previous month must be measured in the month of burn. To accuratelymeasure the amount of biomass used for electricity generation in a month, weight or

volume measurements must relate to the month of burn.

3.16. A strict interpretation of the requirement to account accurately for the weightor volume of biomass burned within a month would mean that measurements had to

be taken at the stroke of midnight on the last day of each month. We realise thatthere are practical implications for some generating stations in achieving this, and we

will therefore accept measurements taken within twelve hours before or after

midnight on the last day of the month, taken at the same time each month.

3.17. In deciding when to take weight or volume measurements of stock carried overfrom one month to the next, good practice would be to measure the fuel at the same

time each month. Whilst there is some flexibility, measurements should be taken at

the same time each month so that ROCs can be issued for generation over the periodof a month, for example at 06.00 on the first day of each month.

3.18. When assessing measurement and sampling information for stock carried over

from one month to the next we will take a practical approach. For example, we will

accept reliable estimates of stock levels (as opposed to requiring sheds to beemptied and stock taken back over weighbridges) in certain circumstances.

Verification

3.19. Generators should consider how they might verify the results of theirmeasurement techniques and may want to consider using a second method of

measurement at the stage of agreeing FMS procedures.

Excluding biomass not used for electricity generation

3.20. Ofgem can only issue ROCs for biomass burned that has resulted in the

generation of electricity. This is because, under the Orders, ROCs are issued to an

accredited generator for each MWh of electricity generated from renewable sources,provided that all relevant criteria have been met.

3.21. If the generating station is on hot standby, is being tested or there is a

cancelled start it is likely that electricity has not been generated. Any biomass

burned for these purposes must therefore be measured and deducted.


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Weighted averaging

3.22. Good practice when calculating the average GCV of a number of composite

samples is to use a weighted average.

Verification

3.24. When taking weight or volume measurements and conducting sampling,

generators should consider how they might verify the results and may wish toconsider using a second method of weight or volume and/or sampling analysis at the

stage of agreeing FMS procedures.

Sampling fuels for energy content

3.25. Sampling is a statistical technique based on probability. It can be defined as

the operation of removing a part, which is convenient in quantity for analysis, from awhole in such a way that the proportion and distribution of the quantity to be tested

is likely to be the same in both the sample and the whole. Samples are usually takeneither from each delivery or from the fuel stream immediately prior to combustion,

and it is good practice for sampling to be carried out at the same time as

measurement to ensure that the sample is truly representative of what is beingburned.

3.26. The procedure that should invariably be used is to:

develop a sampling plan;

take a series of incremental samples;

combine these to form a composite sample; and then

extract a representative sub-sample of the composite sample for analysis.

3.27. The factors that can affect the precision and accuracy of the sampling

procedure are:

the size of the sample relative to the whole;

the number of increments taken during the sampling period to produce a

composite sample;

the method used to extract the sample; and

the method used to extract a sub-sample from the composite sample for

subsequent analysis.


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Sampling frequency

3.28. To ensure that ROCs are issued for fuel burned in the month, the energy

content used in the calculations must relate to the fuel burned in that month. This

means that monthly sampling is usually required.

3.29. When considering how frequently to take samples, generators should considerhow consistent the GCV of their biomass fuel is, how many fuel sources they have

and how much biomass they are using.

Gross Calorific Value (GCV)

3.30. GCV measurements are necessary to calculate the energy content of biomass

burned each month. The GCV of a biomass fuel used in calculations of electricitygenerated from renewable sources will generally be the GCV of representative

analysed samples. To enable the relative energy content of the biomass to bedetermined against what is burned it is also important that the GCV of any fossil fuelused is determined.

Contamination

3.31. The contamination of biomass fuels with materials derived from fossil fuel can

be difficult to establish. However, generators must determine the level of anycontamination in a fuel, as this will affect the calculation of the amount of electricity

generated from renewable sources. Generators must:

identify all possible contaminants; and

put in place preventative measures; or

measure contamination.

Storage

3.31. To avoid deterioration fuels should be stored appropriately. Where

deterioration occurs, the original sample taken will no longer reflect the properties ofthe fuel in the store and ultimately the fuel being burned.

3.32. It is also important that the risk of contamination during storage is minimised.

Whilst storage conditions and times should be considered, it is also important to

remember the fundamental principle behind all fuel measurement and samplingunder the RO: that each fuel must be accurately and reliably measured and sampled

in the month in which it is burned. In relation to storage, this means that fuels canbe kept for long periods, even if they deteriorate, as long as they are measured and

sampled in the month of burn.


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Off-site measurement and sampling

3.33. Traditionally the measurement and sampling of fuels has taken place on-site,

at the generating station (with samples usually analysed off-site). Article 37 (4)10 of

the Orders however recognises that measurement and sampling may be conductedoff-site.

3.34. In addition to the requirements that must be met when fuel is measured on-

site, Article 37(4) of the Orders allows us, when determining whether information isaccurate and reliable where it has originated off-site, to have regard to:

the distance over which the fuel was transported;

the conditions under which the fuel was prepared and transported;

the resources required for Ofgem to verify the accuracy and reliability of theinformation through audit; and

any other matters that we consider relevant.

3.35. As with on-site measurement, the fuel must be measured and sampled withinthe month of burn. Data submitted to us each month must be an accurate reflection

of what has been burned in that particular month. We recognise that this might

cause practical difficulties when off-site measurement takes place at the very end ofthe month and the fuel is burned in the following month. When reviewing their FMS

procedures, we will work with generators to try to find ways to address this.

Distance and transport conditions

3.36. It is important to ensure that the fuel does not change in composition while it

is being transported. When considering the distance covered, it is also appropriatefor us to consider the time taken for the fuel to travel that distance as this could

impact on the state of the fuel. Generators will therefore need to have suitable

measures in place to assure us that the fuel does not change in composition over thetime and distance taken to transport it from the facility where it was measured and

sampled to the place where it is burned.

3.37. Conditions that might cause a fuel to deteriorate over time or change incomposition (for example exposure to moisture causing the fuel to decompose) need

to be taken into account. If the fuel has changed in composition during transit, thegenerator will need to re-sample that fuel.

10Article {X} in the Draft Northern Ireland Order 2009 and Article {X} in the Draft Renewables Obligation

(Scotland) Order 2009 refer

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Auditing for stations using off-site measurement

3.38. Under Article 37(4) we may take the cost of auditing into account when

considering the accuracy and reliability of information drawn from a location other

than the generating station.

3.39. To help us assess the potential cost of auditing a generator which isconsidering off-site measurement and sampling, we will ask for information on the

practicalities of conducting such an audit. We will assess whether these off-sitemeasurement arrangements can be audited practically and at a reasonable cost.

Should we consider the cost to be too high and/or the audit impractical, we will notapprove those off-site FMS procedures.

3.40. To address our concerns about audit costs, generators may wish to propose

employing an independent auditor to verify that the information they are providing isaccurate and reliable and that their FMS procedures are robust. This might also allow

us to reduce the frequency of our own audit visits. We will consider these proposalson a case-by-case basis, taking into account factors including the independence of

the auditors, their technical skills, their understanding of relevant aspects of thelegislation, the scope of the audit and the quality of the audit reports.

Access to premises

3.41. In order to conduct an audit, we require access to a generator's premises. Thegranting of such access is one of the Standard Conditions of Accreditation to which

all accredited generators are subject. The condition relates to the granting of accessto premises owned and operated by the generator.

3.42. In the case of a generator which wishes to measure and sample fuel off-site,we will require access for audit purposes to the facility where that measurement and

sampling takes place. As facilities are often owned and operated by parties otherthan the generator being audited, a Standard Condition of Accreditation requires the

generator to ensure that we can gain access to such off-site measurement facilitiesfor audit purposes.

FMS procedures for stations using waste w ith a fossil fuelcontent greater than 50 per cent

3.43. The measurement and sampling of waste is much more difficult than themeasurement and sampling of biomass fuels principally because it is usually muchmore heterogeneous in nature. Rather than being made up of one biomass

component, or one biomass component with one or two non-biomass components,waste can comprise any number of components, both biomass and non-biomass.

This makes it more difficult to measure the energy content of the biomass fraction

and to carry out representative sampling. As a general rule, the more processed orrefined the waste and the smaller the particle size the easier it will be to develop

robust FMS procedures.


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Agreeing FMS Procedures

3.44. For the reasons described above, waste generators' FMS procedures will need

to include more information than if the station is burning biomass fuel(s). In addition

to meeting the measurement and sampling requirements applicable to all non 100per cent biomass fuels, an outline proposal for an acceptable FMS procedure for astation using waste should include:

an initial set of sampling results from one delivery of fuel from each fuel source

an initial set of sampling results from several deliveries of fuel from each fuelsource

a separate method of sampling to be used for verification

3.55. When agreeing a waste FMS procedure, we will consider whether:

the variance of an initial set of sample results from the same delivery of fuel

the variance of an initial set of sampling results from different deliveries of fuel

a set of sampling results to satisfy the two points above for each fuel source

the type of fuel

how closely the sampling analysis from a verification method matches thesampling analysis from the main method

how the generator proposes to deal with large variances in sample results, if

applicable

Measuring w eight or volume and energy content

3.56. Calculating the renewable energy content of a waste fuel presents twodifficulties. It requires accurate measurement of the percentage of biomass in the

fuel by weight and accurate measurement of the energy content of the biomass inthe fuel. Only if these two measurements are accurate can the biomass energy

content in a sample be calculated.

Using a standard methodology

3.57. Any method for measuring the biomass fraction of waste should include a

repeatable and auditable process that is transparent and can be shown to result inan accurate measurement. Following a methodology set out in a standard may help

generators to avoid additional work in creating a methodology which is rigorous

enough to meet the requirements of the legislation. Also, it is helpful for us if


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generators use a common methodology as this ensures consistency of measurement

between generators.

Initial sampling

3.58. Generators will need to include an initial set of sampling from a single delivery

of fuel from each fuel source. The samples taken from the delivery must berepresentative of what was burnt. As a guide, at least six samples will generally be

necessary to demonstrate whether sampling can be representative. For moreheterogeneous fuels, more than six samples may be necessary.

3.59. An initial set of samples from a single delivery will help us to assess whether itis possible for a generator to provide sampling information that is both

representative of the fuel used and will provide a consistent measurement each

month. To have confidence that sampling can be representative, the variancebetween the results of the sampling analysis from the same delivery of fuel must be

relatively limited.

3.60. Generators will also almost certainly need to include an initial set of samplingresults from several deliveries of fuel from each fuel source. Using this set of

sampling results it may be possible to calculate the range within which the mean

average weight and GCV of the biomass fraction of the fuel is likely to lie. Thisinformation can then be used as a reference point by which to compare monthly

figures. As a guide to numbers, the CEN standard for the classification of fuels

suggests 40 samples are required to classify a fuel as SRF. This number of sampleswould appear reasonable as any less than this would make it difficult to calculate a

narrow enough range in which the percentage by weight and GCV is likely to lie.

Fuel type

3.61. In our assessment of the FMS procedures, the type of fuel will also be takeninto account as the variability of the sampling information is likely to be lower from

more homogenous fuels such as SRF. This means generators using SRF or otherprocessed fuels may find it easier to get their FMS procedures agreed than

generators using unprocessed waste. The type of fuel may also affect the amount of

evidence we need. For example, less evidence might be required for a fuel that haswell-known and consistent characteristics.

Verifying results

3.62. Measuring the GCV of the whole fuel could be useful to verify the GCV of the

biomass fraction, as a more consistent GCV of the whole fuel may indicate a moreconsistent GCV of the biomass fraction.


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FMS procedures for stations using heterogeneous w aste w ith afossil fuel content lower than 50 per cent

3.63. Article 3 (5) in the RO makes provision for those generators using a waste fuel

that is not more than 90 per cent fossil fuel derived but unlikely to be less than 50per cent fossil fuel derived to agree FMS procedures based on the production ofdocumentary evidence rather than the long-term use of direct measurement and

sampling. The outcome of these procedures should they be sufficiently robust will bethe agreement of the declared renewable content within the fuel, in other words

the percentage biomass content by energy within the fuel.

Fuel type

3.64. Article 3 (5) determines that this approach to FMS procedures is designed forgenerators using municipal waste as defined in the Order11 (although generators

using other types of waste are not specifically excluded from proposing the use ofFMS procedures designed on this basis). We are less likely to agree to the use of

evidential data rather than direct measurement and sampling where a fuel that ismore homogeneous in nature than municipal waste is being used, as it should be

more practical for a generator to accurately measure and sample their fuel in this

case.

Content of evidence

3.65. Article 3 (3) makes it clear that the onus for the provision of information that is

suitable for determining the likely declared renewable content of a fuel lies with thegenerator. Once this information is provided to us we will, as with all FMS procedures

consider the robustness of the information provided on a case-by-case basis.Generators may include any information that they believe to be relevant within the

FMS proposal, but some examples of the type of information that could be includedare:

a breakdown of the fuel into its primary categories, for example paper/card,plastics etc

a demonstration of the likely GCVs that can be attributed to each of the primarycategories

the results of any sampling analysis that has been undertaken

11 Article 2 (1) of the Draft Renewables Obligation Order 2009 refers

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Sources of information

3.66. Generators are free to draw upon any information that they believe is likely to

be sufficient in order to effectively demonstrate the likely renewable content of the

fuel that they are using. This information could be drawn from an allocatingauthority, a waste collection authority or a waste disposal authority12. Alternatively,it may be that contractual evidence or data derived from waste composition studies

may be useful in helping to demonstrate the likely renewable content of the fuel

being used.

3.67. Article 3 (4) in the Order makes provision for Ofgem to have regard to anyother data that it believes may be used to indicate the likely renewable content of a

waste fuel when agreeing FMS procedures.

Review ing the level of the declared renewable content

3.68. Under the provisions set out in Article 3 (3) of the Order, we will seek to

periodically review the use of declared renewable content percentages. Our current

view is that generators should resubmit their FMS procedures on an annual basis, by1st March each year. This should allow us enough time to review the revised

procedures and raise queries with generators where necessary in order to agree anew declared renewable content percentage prior to the first issue of ROCs for the

first month within the new obligation period (approximately 15th June).

3.69. Where we agree an FMS procedure with a generator wishing to use the

declared renewable content of a fuel part-way through an obligation period, ourcurrent view is that the percentage agreed would be valid for the remainder of that

obligation period, and that the generator would then need to resubmit an FMSprocedure for the fuel in question by 1st March prior to the beginning of the followingobligation period in order to agree a new declared renewable content percentage.

Changes in the fuel stream

3.70. Generators will need to inform us if the composition of the waste they areusing is likely to change. For example, if a generator agrees a new fuel supply

contract it is likely that the overall composition of the waste may change in which

case the generator may need to provide new evidence to accurately demonstrate thedeclared renewable content of the fuel.

12 Definitions of these bodies are set out in Article 3 (7) of the Draft Renewables ObligationOrder 2009

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4. Sustainability reporting

Chapter Summary

This Chapter outlines the requirements for generators using biomass fuel to provideOfgem with an annual sustainability report.

4.1. Article 55 in the RO sets out the requirement for generators using biomass fuel

to provide Ofgem with an annual report including various pieces of information

concerning the biomass fuel(s) used during each obligation period. In this chapter,we refer to the provision of this information as sustainability reporting.

What information is required?

4.2. Generators need to provide the information listed in the table below as part oftheir sustainability report for each consignment of biomass fuel used in thegenerating station.

Element Detail Example

The type of biomass The material from whichthe biomass was

composed (for example,

whether it was composed

of wood);

Wood

The form of the biomass Where the biomass can

take different forms (forexample, wood can take a

variety of forms,

depending on whether andhow it has been processed

and what it is, is to be orhas been used for), the

form of the biomass;

Sawdust

Mass Where the biomass was

solid, its mass10000te

Volume Where the biomass was

fluid, its volume when

measured at 25 degreesCelsius and 0.1

megapascal

By-product Whether the biomass was

a by-product of a process;By-product of the paper


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production process

Waste Whether the biomass waswaste

Country of origin Where the biomass was

plant matter or derivedfrom plant matter, the

country where the plant

matter was grown;

UK

Country of purchase Where the informationspecified in sub-

paragraph (g) is notknown or the biomass was

not plant matter or derivedfrom plant matter, the

country from which the

operator obtained thebiomass;

Energy crop including

types and proportions

Whether any of the

consignment was anenergy crop or derived

from an energy crop and,

if so

the proportion of the

consignment which was anenergy crop, and

the type of energy crop

contained in the

consignment;

Environmental qualityassurance schemes

Whether the biomass orany matter from which it

was derived was certifiedunder an environmental

quality assurance schemeand, if so, the name of the

scheme

Land us Where the biomass wasplant matter or derived

from plant matter, the use

to which the land on whichthe plant matter was

grown has been put since30th November 2005.

Used for forestry purposes


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Mass balance

4.2. Article {X}13 of the Order allows for generators to take a mass balance

approach when submitting sustainability reporting information. In essence, this

means that generators are not required to provide sustainability information on thespecific fuel that was used a the generating station: instead a generator may provide

sustainability reporting information on an equivalent amount of that type of fuel thatwas purchased by that generating station. For example, should a generator burn

1000te of olive cake in a particular obligation period, the generator would only need

to provide Ofgem with a sustainability report for 1000te of olive cake purchased bythe generator, irrespective of whether the 1000te of olive cake upon which the report

is based was burned during the obligation period for which the report is beingsubmitted.

The format of a sustainability report

4.3. All sustainability reports must be provided to Ofgem via the Sustainability

Reporting module of the Renewables and CHP Register. Guidance on how to use thispart of the Register is provided in the Renewables and CHP Register User Guide14.

The timeframe for submitting a sustainability report

4.4. Sustainability reports must be provided to Ofgem within two months of the endof each obligation period (i.e. by 31st May each year).

Incomplete and overdue sustainability reports

4.5. Should a generator not provide us with the information specified in Article 55 (3)by 31st May, we may by reference to Article 55 (4) opt to postpone the issue of a

number of ROCs equivalent to the total number of ROCs that would otherwise havebeen issued in reliance on data submissions pertaining to the period in question, or a

number of ROCs believed to be appropriate taking account of all of thecircumstances15.

Where a generator does not provide Ofgem with the information specified in Article

55 (3) by 31 August, we will not issue of a number of ROCs equivalent to the total

13 Subject to the publication of the Renewables Obligation Order 200914 This information will be included within the Renewables and CHP Register User Guidesubject to