The Green Power Market and Additionality
Renewable energy has been on the rise worldwide because of environmental and economic factors. Many commercial, industrial, and institutional buyers are more inclined to utilise large-scale renewable energy. This is because of benefits such as carbon neutrality and more importantly, financial additionality. Through green power purchasing, consumers are able to achieve their goals of sustainability. Moreover, with the rapid expansion of the green power market, understanding how to acquire green power products is quite relevant.
It is important to note that not all green power products are the same. According to Ofgem, many energy consumers in the UK have found considerations of green tariffs to be low. This is because they consider green tariffs as more expensive than standard tariffs.
There are two types of green tariffs that are available on the market: Tariffs with additionality, that offer additional environmental benefits beyond the provision of renewable energy paid for through UK's Renewables Obligations, and the tariffs without additionality.
What does Additionality mean?
The concept of additionality has been causing frustration and disagreement with many. This is because there is a lack of a well-framed definition of the concept. But, for many, they consider it's core definition to be “renewable energy generation that is truly new,” as stated by Schneider Electric.
When it comes to green power generation, additionality pertains to the fact that without green power investment or purchase, new renewable energy would not be financed or added, among other things, to the national grid. Thus, renewable energy that would not have occurred otherwise.
Who Are Companies Who Utilise Additionality
As a business claiming additionality, you are committed to reducing carbon emissions and are wholeheartedly participating in the UK's goal to source 20% of the country's energy from renewable energy sources by 2020. This portrayal of material leadership has been practised by prominent companies, among which are Microsoft, Google and Apple. Microsoft utilises additionality on their Keechi wind farms, while Apple has projects ensuring renewable energy consumption. Google is one of the largest buyers of renewable energy. These companies finance and support new and developing renewable generation sources. This is in contrast to purchasing those sources that are already available such as conventional fossil fuels.
What Are the Advantages of Additionality and Renewable Energy
Many consumers and businesses are interested in the “additionality” of their purchase because of the benefits offered. However, the survey conducted by Ofgem showed that they found it expensive and unclear because it was not properly defined, and with the changing modern energy landscape, it has become an appealing choice.
Green tariffs with additionality will offer additional environmental benefits such as investment into carbon offsetting schemes or energy suppliers providing contracts with certain renewable energy producers and having more than the required minimum amount of renewable energy in their overall fuel mix. This will encourage additional investment in renewable sources.
Why You Should Choose Renewable Energy Today
For your business, you have the option of choosing renewable energy initiatives. If your goals are sustainability and carbon reduction, make sure that you are with the right energy supplier that can give you what you want. Take part in the further development of green energy power. And you'll see that in the long run, you have made the right decision for your company.
At EnergyBillKill, we can help you switch energy suppliers and choose those that can provide tariffs with additionality. Compare quotes in seconds and avoid the hassles of long processes. We will make it convenient for you so you can switch to renewable energy smoothly. So, register an account with us now. You can visit our website here.