{"id":135,"date":"2021-04-29T15:48:00","date_gmt":"2021-04-29T14:48:00","guid":{"rendered":"https:\/\/www.goodenergy.co.uk\/businesses\/?p=135"},"modified":"2022-10-24T15:52:57","modified_gmt":"2022-10-24T14:52:57","slug":"guide-to-net-zero-energy-procurement","status":"publish","type":"post","link":"https:\/\/www.goodenergy.co.uk\/business\/insights\/guide-to-net-zero-energy-procurement\/","title":{"rendered":"Net zero energy procurement: what you need to know"},"content":{"rendered":"\n

Many businesses in the UK now have net zero emissions targets in place and are developing pathways to get there. The procurement and use of renewable energy to heat and power our buildings will play a critical role \u2013 but cutting through the greenwash can be a challenge.<\/p>\n\n\n\n

Cue new guidance from the UK Green Building Council (UKGBC)<\/a> on how to ensure that your green energy procurement will have a genuine impact on emissions reduction. In this piece we provide a short explainer on the recommendations.<\/p>\n\n\n\n

Renewable electricity procurement<\/h2>\n\n\n\n

UKGBC\u2019s guidance sets out three principles that must all be met to achieve a \u201chigh quality\u201d renewable procurement route:<\/p>\n\n\n\n

  1. There should be exclusive ownership of the energy attribute.<\/li>
  2. The energy must be from renewable, non-fossil fuel energy sources.<\/li>
  3. It must provide credible additionality.<\/li><\/ol>\n\n\n\n

    Additionality \u2013 and the problem with REGOs<\/h2>\n\n\n\n

    The principle of additionality is critical to the guidance: it means an organisation\u2019s procurement choice should directly result in increased renewable energy generation (and therefore genuine emissions reduction).<\/p>\n\n\n\n

    But, as the UKGBC points out, \u201cat the time of publication, only three UK suppliers have been recognised by Ofgem to provide additionality\u201d. Good Energy is one of them.<\/strong> We generate renewable power from our own wind and solar farms and buy renewable power from small independent renewable generators. Added together, it matches the amount of electricity consumed by our domestic and business customers across the UK.<\/p>\n\n\n\n

    The problem, explains the guidance, is that for the vast majority of so-called \u201cgreen tariffs\u201d on the market, this isn\u2019t the case. A recent report<\/a> by the Climate Change Committee identified that the procurement of renewable electricity is currently having a limited impact, and in many cases, no impact at all on emissions reductions.<\/p>\n\n\n\n

    One of the issues lies with the REGOs market: REGO certificates can be sold independently to the power itself \u2013 this is referred to as being \u2018unbundled\u2019. As the guidance explains, \u201cin practice this means that suppliers could purchase fossil fuel power but sell it as a green tariff or 100% renewable electricity if supported by an equivalent amount of REGO certificates.\u201d<\/p>\n\n\n\n

    Recommended routes for procuring renewable electricity that meet the three principles<\/h2>\n\n\n\n

    Achieving truly green electricity procurement<\/h3>\n\n\n\n

    The message, in short, is that if you\u2019re looking to procure renewable electricity via a green tariff, you need to check how the supplier is sourcing their electricity.<\/p>\n\n\n\n

    A simple question to ask is, \u2018how much of the green electricity you supply each year is backed by agreements with renewable generators, and how much is just backed by REGOs?\u2019 If any of it is just REGOs, without also buying the power to go with them, then it\u2019s not additional, and it\u2019s not driving the growth of renewables in the UK.<\/p>\n\n\n\n

    Our greenwashing FAQs<\/a> explain further.<\/p>\n\n\n\n

    Green gas procurement in a nutshell<\/h3>\n\n\n\n

    Around 75% of the UK\u2019s heating demand in buildings is met by gas, most of which is derived from fossil fuels. Decarbonising the gas grid is one of the biggest challenges for the UK to overcome as part of its transition to net zero \u2013 and it\u2019s going to take time.<\/p>\n\n\n\n

    So to achieve a genuinely net-zero building, the UKGBC guidance recommends:<\/p>\n\n\n\n