UTILITY ENERGY PROCUREMENT COMPANY

Green tariffs, also known as renewable energy tariffs, ensure that the electricity supplied to the customer is sourced from renewable energy sources, thereby reducing the carbon footprint associated with energy consumption. There are several types of green electricity & gas tariffs, each with its own characteristics and methods of supporting renewable energy. Here are some common types:

1. “100% Renewable Electricity” tariff ensures that all the electricity supplied comes from renewable sources, such as wind, solar, hydro, or biomass. The energy supplier guarantees that the electricity consumed is matched with an equivalent amount of electricity generated from renewable sources.

2. “Renewable Energy Guarantees of Origin (REGOs)” represent the environmental benefits of renewable energy generation and purchasing them helps support renewable projects. One REGO certificate is issued per megawatt hour (MWh) of eligible renewable output to generators of renewable electricity. The energy supplier may not provide electricity directly from renewable sources but purchases REGO backed supply contracts equivalent to the customer's energy consumption. 

3. “Green Gas” is biogas produced from organic waste sources like agricultural residues, sewage, or landfill gas. Green gas tariffs contribute to reducing carbon emissions from gas consumption.

4. “Community Energy Tariffs” support local community-based renewable energy projects. The energy supplier may invest in or source electricity from renewable projects within the local community, providing direct benefits to the area.

5. “Carbon-Offset Tariffs” means that the energy supplier calculates the carbon emissions associated with the customer's electricity consumption and invests in carbon offset projects to compensate for these emissions. Projects may include reforestation, renewable energy projects, or other initiatives that reduce carbon emissions elsewhere.

6. “Time-of-Use Tariffs” offer variable pricing depending on when electricity is used, encouraging customers to shift their electricity consumption to times when renewable energy generation is highest. This helps align energy usage with periods of peak renewable production.

When considering a green energy tariff, it's important to review the supplier's policies and documentation to understand how they support renewable energy and contribute to sustainability efforts.

REGOs, which stands for Renewable Energy Guarantees of Origin, are certificates issued in the United Kingdom to verify the renewable origin of electricity. They are part of the government's support for renewable energy and play a crucial role in ensuring transparency and tracking the generation and consumption of renewable electricity.

Here's how REGOs work:

1. Renewable electricity generation, such as a wind farm, solar plant, or biomass facility, produces electricity.

2. For each megawatt-hour (MWh) of renewable electricity generated, a REGO certificate is issued, to provide proof that the electricity was produced from renewable sources.

3. REGOs are certified by the authorities to ensure the accuracy and legitimacy of the renewable claims. Renewable energy generators are audited and verified to meet specific criteria to be eligible for REGOs.

4. Energy suppliers can purchase REGOs from renewable energy generators. By doing so, they can demonstrate to their customers that a certain percentage or the electricity supplied is from renewable sources.

5. REGOs play a role in helping the UK meet its renewable energy targets. Energy suppliers are required by law to source a certain percentage of their electricity from renewable sources, and REGOs are one way for them to comply with these obligations.

It's important to note that REGOs do not represent the physical electricity itself; instead, they are certificates that provide evidence of the electricity's renewable origin. This means that the same MWh of renewable electricity can have multiple REGOs, each representing the renewable attributes of that specific MWh of electricity.

REGOs are just one of several mechanisms used to support and track renewable energy in the UK. Other countries may have similar systems or certificates with different names to verify the renewable origin of electricity.

Green gas, also known as renewable gas or biogas, is a type of energy derived from organic materials through a process called anaerobic digestion or other biological processes. It is considered a renewable energy source because it is produced from sustainable feedstock and helps reduce greenhouse gas emissions when compared to conventional fossil fuels.

How green gas is produced:

1. Anaerobic Digestion: One of the primary methods of producing green gas is through anaerobic digestion. In this process, organic materials, such as agricultural waste, food waste, sewage sludge, or energy crops, are broken down by bacteria in an oxygen-free environment. This biological decomposition produces biogas, which mainly consists of methane (CH4).

2. Upgrading: Biogas generated from anaerobic digestion contains methane, carbon dioxide (CO2), and small amounts of other gases. Before being used as green gas, the biogas must undergo a purification process called upgrading. During upgrading, the CO2 is removed, leaving almost pure methane, which is equivalent to natural gas.

3. Injection into the Gas Grid: Once the biogas is upgraded, it is injected into the existing natural gas grid, where it can be distributed to consumers alongside fossil-derived natural gas. Consumers can then use this green gas for heating, cooking, or electricity generation.

Benefits of green gas:

1. Renewable and Sustainable: Green gas is produced from organic waste materials and energy crops, making it a renewable and sustainable energy source. As long as the feedstock used is replenished or recycled, the gas production can continue indefinitely.

2. Reduced Emissions: When compared to burning fossil fuels like coal or natural gas, green gas has a lower carbon footprint. It helps reduce greenhouse gas emissions because the CO2 released during its combustion is offset by the CO2 absorbed by the organic materials during their growth.

3. Waste Management: Green gas production can help by diverting organic waste from landfills and using it for energy generation instead.

4. Energy Security: Diversifying the energy mix with green gas can contribute to energy security by reducing dependence on imported fossil fuels.

Green gas is an important component of efforts to transition to a low-carbon and sustainable energy future. It complements other renewable energy sources like wind and solar power, providing a flexible and reliable energy supply that can be stored and distributed through the existing gas infrastructure.

The price of energy is influenced by a variety of factors that impact the supply and demand dynamics in the energy market. Understanding these factors can help businesses better manage their energy costs and make informed decisions when purchasing energy. Here are some key factors that affect the price of business energy:

1. Like any commodity, the balance between demand and supply plays a significant role in determining prices. When demand is high and supply is limited, energy prices tend to rise. Conversely, increased supply or reduced demand can lead to lower prices.

2. Energy prices can be influenced by global energy market trends, including changes in crude oil prices, natural gas prices, and other international energy benchmarks.

3. The adoption and promotion of renewable energy policies, such as feed-in tariffs or renewable portfolio standards, can impact the cost of green energy sources, which, in turn, may influence overall energy prices.

4. Fluctuations in the cost of fossil fuels (e.g., coal, oil, natural gas) can directly impact energy prices.

5. Changes in government taxes, levies, or carbon pricing mechanisms can affect energy costs for businesses.

6. Extreme weather conditions and seasonal variations can influence energy demand. For instance, cold winters can lead to increased heating demand, potentially affecting energy prices.

7. The condition and capacity of energy infrastructure, as well as transmitting energy, can impact pricing.

8. Competition among energy suppliers in a particular region can affect pricing. In more competitive markets, businesses may have access to better deals and pricing options.

9. International operations can be affected by fluctuations in exchange rates.

10. Economic conditions, such as growth or recessions, can impact energy demand, and subsequently, pricing.

11. Energy efficiency efforts within a business can impact its energy consumption and, consequently, costs.

It's important for businesses to stay informed about these factors and work with reputable energy consultants or advisors to develop strategies to manage their energy costs effectively.

Optimised can help you analyse energy usage patterns, explore energy efficiency measures, and procure energy to reduce the cost and carbon of your energy.

Utility energy procurement is the strategic process of sourcing and acquiring energy contracts—such as electricity, gas, and renewable energy—to meet the operational needs of an organisation.

The goal of energy procurement is to secure a reliable, cost-effective, and sustainable energy supply that aligns with the organisation's financial and environmental objectives.

In order for organisations and busines to manage their energy purchasing, they require a utility energy procurement strategy.

This strategy involves but is not limited to: analysing energy consumption patterns, understanding market dynamics, negotiating contracts with energy suppliers, managing risks, and ensuring compliance with regulatory requirements. 

Energy procurement consultants help businesses develop strategies to optimise and manage their energy purchasing.

This includes but is not limited to: reviewing a business' current energy consumption,  options from different energy providers, negotiating contracts, as well as reviewing and monitoring energy consumption for contract negotiations.