Renewable Energy for Businesses
September 30, 2019
With urgent calls to minimise our impact on the environment and pressure to meet net zero targets, it’s important that businesses are doing all they can to reduce emissions and their carbon footprint. Many are already purchasing renewable energy to power their business – if you’re not one of them, it’s time to act.
Ignite have been working with large multi-site businesses on their sustainability goals and net zero strategies. One aspect of this is securing renewable energy for these businesses. We take a proactive and transparent approach that includes renewable energy procurement.
Renewable Energy Procurement
Many businesses and organisations across a wide range of sectors are actively pursuing renewable energy procurement. Securing energy from renewable sources is a great way to publicly demonstrate that your business cares about the environment as well as gaining more control in a variable energy market.
Ignite Energy work with energy suppliers to provide businesses with clean, renewable energy. Call us today to learn more about how we can transform your organisation and help you achieve net zero targets.
In this article, we’ll look at how renewable energy benefits businesses and the environment, how it’s procured for businesses and the opportunities ‘going green’ represents for businesses moving into the future.
Renewable Energy Advantages – why your business should go green
Making your business more sustainable in the long term will directly reduce your impact on the environment. That’s the bottom line.
As well as helping to reduce your contribution to climate change, the benefits of renewable energy for businesses include:
- A more secure energy supply – fossil fuels won’t last forever and supply is increasingly dependent on imports. In contrast, renewable energy sources occur naturally, in all regions, and won’t run out.
- Improving environmental credentials and strengthening your brand – dealing with businesses with proven environmental credentials is important to an ever-growing subset of customers and other stakeholders.
- Future-proofing – using renewable energy will become more widespread. Indeed, legislation is already setting targets for its use in some new developments. Switching sooner rather than later will give you a head start in possessing renewable energy expertise.
Renewable energy and Net Zero targets
Energy managers and sustainability officers are working hard to meet net zero targets. One of the easiest first steps is to review how you source your energy and switch to renewable energy sources.
Procuring renewable energy will certainly make your organisation more sustainable, but it is only a small piece of the puzzle. You also need to decrease energy consumption or demand.
Read more about our work with New Look and how we helped them achieve carbon neutral status or find out how Ignite can help you achieve Net Zero goals.
Economic benefits of renewable energy
Although there are currently no financial incentives or grants for a business to use energy from renewable sources there are long term economic advantages. The economics of green energy offers more than just short-term rewards.
Choosing green energy for your business makes sense if you want to secure a healthy bottom line for years to come.
The biggest financial benefit of using green energy is securing long-term stable energy costs. Renewable energy sources are not subject to the same price rises as fossil fuels. If you can commit to renewable energy over the long term, the price of energy can be secured for a longer-term than available in the general wholesale power market.
Corporate renewable energy procurement – making the switch to green
If you are starting to consider a switch to green energy for your business there are two questions that you might have:
- Can it negatively impact my business? Although renewable energy is currently slightly more expensive to use, switching to renewable sources of energy will have a minimal impact on your operational costs. In fact, using green energy will benefit your business in the long run.
- Is it easy to switch? Yes. It’s easy to switch to using renewable sources of energy. Procuring green energy can be managed in similar ways to traditional supply contracts. This is something Ignite can help you with.
Ignite Energy – procuring renewable energy for businesses
The UK government has committed to achieving carbon neutrality for all energy used across the UK by 2050. Ignite can make sure your business is ahead of the curve by ensuring the energy procured for your business comes from renewable and sustainable sources.
There are several mechanisms for procuring green energy including Power Purchase Agreements and the procurement of REGO or Enhanced REGO energy.
Power Purchase Agreements
Power Purchase Agreements (PPAs) offer businesses a way to secure green energy at a known price for a longer period of time than the wholesale market has liquidity. This ensures stable energy costs at the same time as making sure that your investment in green energy genuinely results in new capacity being brought online. This could be for some of or all of a business’ volume and can range from 5-20 years. Find out more about the full benefits of Corporate Power Purchase Agreements.
Renewable energy and the need for Deeper Green
More and more businesses are interested in securing deeper green energy. This represents a step beyond simply purchasing REGO-backed renewable energy and refers to having more of a positive real-world impact when it comes to energy procurement. The concept of deeper green energy is tied to creating new capacity on the grid rather than simply purchasing existing renewable energy. The purchasing of PPAs is the best way for businesses to achieve this while also reaping other benefits.
REGO (Renewable Energy Guarantees Origin) backed energy ensures that the energy your business purchases is offset by renewable energy being generated and exported to the grid. This type of supply is not traceable, however, does guarantee there is enough supply of green energy to meet your needs.
Enhanced REGO offers the same benefits as REGO backed energy, with one crucial difference. This kind of supply contract is traceable, meaning the energy you purchase can be traced back to an individual source of renewable generation.
Enhanced REGO can improve green credentials as REGO certificates can be available to display in-store, detailing the source of the power that runs your business.
Procuring renewable energy for businesses – green energy management services
Ignite offer unique end-to-end corporate renewable energy procurement services that involve managing procurement strategies and opportunities, controlling energy budgets and managing risk amongst markets.
We believe energy procurement should be transparent and effective. That’s why we work to make sure that you get the right energy for your needs.
Ignite Energy can save your business millions of pounds in energy costs through tailor-made strategies and solutions. We pride ourselves on outstanding service – you will benefit from the support of a dedicated and experienced team that understands your business inside and out.
We are experts in energy management for large businesses and organisations.
Contact us today to find out how we can help your business to procure renewable energy.