A group of leading UK businesses has joined Climate Group in calling on Energy Secretary Ed Miliband to accelerate reform to the current Renewable Energy Guarantees of Origin (REGO) scheme.
The signatories – BT Group, British Land, Coca-Cola Europacific Partners, EnergyTag, Good Energy, Google, Pearson, Unilever, Unite Students, Virgin Media O2 and Vodafone UK – ask for reform to unlock more investment in renewable generation capacity, increase energy security and to bring down costs to support the decarbonisation of the UK grid.
The REGO scheme provides transparency to consumers about the proportion of electricity that suppliers source from renewable electricity, and provides a method for businesses to evidence their greener power procurement in emissions reporting.
Unlocking Corporate Investment in UK Renewables, a policy summary on REGO reform published by Climate Group (17 September), sets out three areas which could transform the current system. The recommendations have been backed by large corporates with UK operations using high levels of renewable electricity and energy sector stakeholders.
1. Greater transparency in pricing
Lack of transparency combined with unpredictable pricing has made it difficult to determine fair market value for REGOs. Over the last two years, prices have fluctuated between £0.2/MWh and £25/MWh. Improved visibility of bids, offers and volumes through broker platforms or Ofgem would help boost market confidence.
2. More accurate electricity matching
Granular certification, with electricity matched locally and closer to real time (hourly instead of annually), would provide more accurate information to businesses, support solutions to meet that demand and build a stronger basis for renewable claims.
3. Boost renewable capacity
The current system is not adequately supporting the roll out and long-term investment in new renewables. REGOs should be repurposed to drive more investment in renewable generation, supporting the Government’s ambitious plans for a zero-carbon grid by 2030.
Climate Group’s recommendations could transform REGOs from a simple energy authentication receipt mechanism to a positive opportunity to drive further decarbonisation of the UK grid.
Sam Kimmins, Director of Energy, Climate Group, “Reform is urgently needed to ensure our energy certification system is fit for purpose, incentivising and enabling business to invest even more in the UK’s renewable future. We ask the Government to consult with industry to build a revised and improved REGO scheme able to boost renewable capacity, create fairer pricing, leverage competitiveness and drive faster grid decarbonisation.”
Rich Marsh, Sustainability Director, BT Group, “The recent volatility in the REGO market underscores the urgent need for reform to ensure greater transparency and certainty for businesses who want to accelerate the transition to net zero. We recognise the role that businesses must play in this process, and we urge the Government to work with industry to create a more predictable and effective system that supports long-term investments in renewable energy and decarbonises the UK grid.”
