Renewable Energy

Introduction

co2balance is a big supporter of renewable energy, including electricity generation.  We see the expansion of renewable energy generation as one of the key ways in which the UK and the world will reduce carbon emissions.  We recommend our clients switch their domestic and business energy supplies to renewable tarrifs as it sends an important signal to the market that consumers are prepared to pay a premium price for renewable power.  This will give power developers the confidence to execute future renewable projects.

Does signing up to a green tariff eliminate my power carbon footprint?

In a word, no.

Why Not?

The Government currently includes all renewable energy fed in to the grid within the regular carbon factor for on-grid electricity.  There is no separate factor available that excludes the renewable energy portion of the UK energy mix. If we fail to use the DEFRA electricity carbon factor for green tariffs we are effectively double counting the carbon saving.

All UK electricity companies have legally binding targets on the amount of renewable energy they source and these same companies have realised that they can sell their renewable quota at a premium to their customers under the banner of a “green” tariff.  The Government rightly points out that this, at best, is misleading and certainly does not encourage the growth of the renewables market by customer demand.

In addition, those companies that produce renewable energy are issued Renewable Obligation Certificates (ROCs), Levy Exemption Certificates (LECs) or Renewable Energy Guarantees of Origin (REGOs) that certify a MWh of electricity has been produced from sustainable sources.  These can be sold to other electricity producers that are not meeting their legal quota.  Many of the Renewable Tariff providers do sell a percentage of their ROCs / LECs / REGOs and this has further concerned DEFRA that there is a significant risk of double counting the carbon benefit under the current system

The Carbon Trust have issued a statement that can be viewed on the link below in order to get a better understanding of the concerns.

http://www.carbontrust.co.uk/climatechange/policy/green-tariffs.htm

So Why Sign up to a Renewable Tariff then?

The more consumers that sign up to renewable tariffs, the greater the proportion of the UK's electricity that will have to be sourced from renewables.  This is a valid aim in itself and to encourage our clients to do this, we offer a 10% discount on the cost of offsetting the electricity portion of their carbon footprints.  Click the link below to sign up with what co2balance considers to be the best UK green energy supplier.

 

Good Energy