The Non-Fossil Fuel Obligation (NFFO) refers to a collection of orders requiring the electricity Distribution Network Operators in England and Wales to purchase electricity from the nuclear power and renewable energy sectors. Similar mechanisms operate in Scotland (the Scottish Renewable Orders under the Scottish Renewables Obligation) and Northern Ireland (the Northern Ireland Non-Fossil Fuel Obligation).
Five orders were made under the NFFO before the UK government replaced it with the Renewables Obligation, the first order or 'tranche' was on October 1, 1990 with an average price of 7.51 pence per kWh being paid to renewable energy generators, the fifth and last was in September 1998 at an average of 2.71 pence per kWh. Although the Renewables Obligation is now the Government’s main mechanism for expanding the renewables sector, the last of the existing orders will continue in effect until it expires in 2018. Contracts resulting from the first two tranches however terminated in 1998, allowing generators from these rounds to now sell electricity under the new mechanism.
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