Our fuel mix
At Good Energy, we believe the UK can be powered purely by renewables. We source all our electricity from renewable sources including solar power, wind power, hydroelectric power and biogeneration.
This page explains our electricity fuel mix and how we make sure that we’re 100% renewable and genuinely supporting renewables to grow. This is what makes us one of the greenest energy suppliers in the UK.
*Fuel mix disclosure period April 2019-March 2020. 0g CO2 refers to generator emissions in the operational phase. UK Fuel Mix & carbon intensity data source: BEIS, Fuel Mix Disclosure Data Table. All energy suppliers are required to provide information on their fuel mix. To check another supplier’s fuel mix, go to their website.
What does “fuel mix” mean?
A supplier’s fuel mix shows the sources of the electricity that it supplies to its customers. For example, coal, gas, nuclear and renewables.
Over the course of a year, energy suppliers must buy enough electricity to feed into the national electricity grid to cover the amount their customers take out. At the end of each year, suppliers must disclose their fuel mix to the electricity and gas regulator, Ofgem. This information is published annually to help people make informed choices about their electricity supplier.
How do we know our fuel mix is 100% renewable?
We generate renewable power from our own wind and solar farms and buy renewable power from independent renewable generators.
We also source electricity from Westermost Rough Wind Farm, which is situated five miles off the Yorkshire Coast. We purchase 12% of its overall output, which is enough renewable electricity per year for more than 33,000 average homes.
Added together, the renewable electricity from all these sources matches the amount of electricity we supply to our home and business customers across the UK.
For more detailed information on how we source electricity, read the Environmental Benefits substantiation report below.
For further information on the impacts of the UK average fuel mix see https://www.gov.uk/government/collections/fuel-mix-disclosure-data-tables
For further information on the health and environmental impacts of coal, gas and nuclear see:
Nuclear (radioactive waste): http://ukinventory.nda.gov.uk/about-radioactive-waste/how-is-radioactive-waste-produced/
The environmental benefits of being on a Good Energy tariff
Being on a Good Energy tariff brings with it a number of additional environmental benefits, over and above those brought about by government subsidies and obligations.[i] The sections below outline those benefits.
The following information about commitments to renewable energy applies to all Good Energy products. We have set out our evidence to support this here in three sections – Electricity Purchasing, Generator Support, and Innovation.
Scroll to the end for information about our specific tariffs.
- Electricity Purchasing
As well as the 6 solar sites and 2 wind farms Good Energy owns and operates, we hold Power Purchase Agreements (PPAs) with over 1600 generators. PPAs provide greater financial support and security to generators than selling Renewable Energy Guarantee of Origin (REGO) certificates. For one of our solar sites, the revenue from REGOs over one year would barely cover the costs of cutting the hedges. Many green energy suppliers buy REGOs to be able to claim that their fuel mix is renewable; it is a false assertion to state that buying REGOs provides meaningful support to generators in and of themselves.[ii]
- Subsidy free PPAs: Our partnerships help new renewables get built where they otherwise would not. PPAs provide a route to market for unsubsidized renewable power, where exposure to the wholesale market might be a risk too far for developers. A recent example of this is our deal with Flintshire County Council to buy the power which will be produced by two solar sites.
All our tariffs carry the same level of environmental benefit and support for renewables, which means that if a customer joins Good Energy, we must contract with more renewable generators. We cannot, as has been common industry practice, simply move some green power across from a ‘brown’ tariff and buy cheap wholesale power to top our volumes up. This approach earned us the position of one of only two ‘deep green’ suppliers when Which? conducted their review into electricity purchasing arrangements across the market.
To ensure our customer demand is backed by PPAs, over the course of a year we tend to over-procure. In 2021 we anticipate our PPAs will provide 113% of our customers’ demand. This would give us a 13% REGO surplus, but we never sell them on. Selling REGOs independently from the power they relate to facilitates the second-hand certificate market that enables suppliers who buy no renewable power to falsely claim green credentials, which misleads customers.
We never use Guarantee of Origin certificates (GoOs). Suppliers who use GoOs instead of REGOs can avoid environmental levies such as the Feed-in Tariff and Contracts for Difference – and so customers who are on tariffs backed by GoOs alone could be contributing less to decarbonising UK energy than a customer on a grid average tariff.[iii]
Because of the size and variety (both in technology and geographical location) of our renewable portfolio, we invest heavily in forecasting, beyond that which would be required of a supplier who either holds no PPAs, or PPAs with a small number of large generators. This increased insight allows us to give renewable generators better prices, which helps them to be financially viable propositions.
Many of the generators we buy from do not have generation as their primary business activity, and so we provide extra support and advisory services to enable them to sell their power. We work constantly to ensure our generators are ready for upcoming industry changes - our support, according to Ofgem, ‘helps renewable generators enter the market and helps existing generators to remain there.’[iv]
We campaign and advocate on behalf of renewable generators, including with Government; raising awareness and promoting their interests. Due to the way governance systems are set up, smaller renewable generators are consistently underrepresented in conversations about industry change. Good Energy allocates resource to participate in industry consultation and modification processes not only on behalf of ourselves, but on behalf of generators.
- Tariff specific environmental information
Good Energy's electricity Standard Variable Tariff was awarded a derogation from the default tariff price cap because it supports the generation of electricity from renewable sources. This derogation was granted to only three suppliers in the marketplace, despite many others offering '100% renewable' tariffs.
Ofgem awarded Good Energy’s SVT a derogation from the price cap expressly because it explicitly supports renewable generation. The following points were highlighted by the regulator as evidence of the additional support we provide to renewable generators:
- The PPAs we hold with over 1600 generators provide financial support and security over and above that provided by REGOS.
- The 6 solar sites and 2 wind sites we operate ourselves.
- The advisory service we provide to current and would-be generators, helping them get sites built and enter the market, and keeping them aware of upcoming industry change.
- The advanced forecasting techniques we use which allows us to pass more value through to generators.
Good to Fix Electricity
Whether a customer is on our SVT or on our Good to Fix fixed tariff, they receive a 100% PPA matched renewable product which contributes to new renewable generation. With their bills, we deliver the following commitment and support to renewable generators:
- A route to market and fair pricing for over 1600 small scale renewable generators spread all over the UK – the average distance between a GE customer and a GE generator is less than 4 miles.
- An advisory service for current and would be generators to allow them to enter and remain in the market.
- Advanced forecasting techniques we use which allows us to pass more value through to generators.
- The campaigning, advocacy, and promotion activities we undertake on behalf of our generator partners, including with Government, raising awareness, and promoting their interests.
[i] Government subsidies and obligations which are paid for by all UK billpayers include the Renewables Obligation, the Feed-in-Tariff, and the Contracts for Difference scheme.
[ii] The shortcomings of REGO backed tariffs as a means of supporting renewable energy was recently set out independently but the CCC, in their paper on Corporate Procurement of Renewable Energy.
[iii] Our research note on GoO use showed that 126m of environmental levies and taxes were avoided by energy utilities using European certificates last year.
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