Renewable Energy Procurement for Businesses
September 30, 2019
Are you interested in using renewable energy to power your business? With sustainability becoming increasingly important to reduce our impact on the environment and climate change, businesses are searching for ways to reduce their emissions and carbon footprint.
Businesses and organisations across a wide range of sectors are now switching to using energy from renewable sources. There are many reasons why they are adopting green sources of energy. Getting your energy from renewable sources is a great way to publicly prove that your business cares about the environment and it’s also a way to help secure the long-term future of your business.
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 into a more environmentally friendly business.
In this article, we’ll look at renewable energy, how it’s procured for businesses and the opportunities ‘going green’ represents for businesses moving into the future.
Why should businesses go green?
Making your business more sustainable in the long term will directly result in reducing your impact on the environment.
As well as helping to reduce your businesses contribution to climate change, the benefits of using green energy 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, emerging 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.
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 green 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.
Switching to green energy
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 a 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 we can help you with.
Ignite Energy – procuring green 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 Agreement?
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 ensuring 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 Guarantees Origin
REGO 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.
Enhance REGO can improve green credentials as certificates can be available to display in-store, detailing the source of the power that runs your business.
Procuring sustainable 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 our clients get the best energy prices available to them.
Ignite Energy can save your business millions of pounds in energy costs through tailor-made strategies and solutions – with 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 switch to green energy.