Is Your Lightbulb Lying to You? Shocking Truth About "Green" Electricity

Green Electricity - Grid vs. Local Generation

This blog post explores the challenges and considerations for organisations seeking to purchase renewable energy.

Key Points:

• The UK Grid: Makes significant progress in decarbonisation (from 500gCO2e/kWh to 200gCO2e/kWh) Offers renewable energy through Renewable Energy Guarantees of Origin (REGOs). REGOs show green energy was purchased, but not necessarily supplied. Doesn't guarantee additionality (new renewable investment).
• Local Renewable Generation: Provides more control over the source of energy. Power Purchase Agreements (PPAs) are a popular option for corporations.PPAs offer a guaranteed price for both generator and consumer. Can be bundled with REGOs for verified reductions in Scope 2 emissions.
• Future Considerations: Temporal Matching: Aims to ensure every unit of energy consumed comes from a renewable source. Location: Sourcing renewable energy closer to consumption minimises transmission losses. Grid Balancing: Balancing supply and demand with increasing reliance on renewables. Future of REGOs: As demand increases, REGO prices will rise, incentivising more renewable generation. GHG Protocol Revision: May influence future energy procurement policies.

Conclusion:

Organisations have a choice between grid-based renewable energy with REGOs or local generation via PPAs. The decision depends on factors like cost, control, and CSR goals. The future of green electricity involves temporal matching, localised generation, and a more robust grid for balancing supply and demand.

Find out more: https://auditel.co.uk/green-electricity-from-the-grid/