Green electricity procurement is not a static market – much like the wholesale energy market for traditional fuels, the cost of green electricity procurement continually varies and there are some excellent deals on business energy to be had if you are in a position to negotiate.
There are of course certain long-term benefits to green electricity procurement:
- It supports corporate environmental responsibility commitments.
- It can help to enhance the energy security of the UK against energy imports.
- It is sustainable for the future rather than depleting fossil fuels.
In practical terms for businesses subject to climate change levies and mandatory greenhouse gas reporting, green electricity procurement can now usually be used to offset your emissions, if you procure a green electricity product/tariff that meets certain requirements.
The falling cost of green electricity procurement
One way in which the green electricity procurement market is developing faster than expected is in the falling cost of green electricity generation using certain sustainable technologies.
For example, the Solar Trade Association reports that five years ago, solar electricity costs were forecast to hit £80 per MWh in 2019, but that figure has actually dropped to £50-60 and may continue to fall to below £40 per MWh in the coming decade. (1)
This is set against ongoing rises in the cost of fossil fuels like oil and gas, and represents a significant opportunity for businesses to renegotiate green energy tariffs in 2019 in light of the current market position.
Finding green energy tariffs that qualify for carbon offsetting
One of the main challenges in 2019, as in previous years, is simply knowing which green energy tariffs can be used to offset GHG and carbon emissions.
At Envantage we assess the energy market to filter out the green energy tariffs that do not comply with the qualifying criteria for carbon offsetting, and to make sure that our green electricity procurement service focuses only on those that do.
This means when you procure green energy through Envantage, we can make sure that the tariff or tariffs recommended to you are fully compliant with any mandatory reporting schemes, carbon footprinting schemes and industry-specific climate challenges you face in 2019.
With regular review, we can continue to drive further cost savings by taking full advantage of the rapidly developing wholesale market for green energy procurement to bring your business costs down even further, all while continuing to support your commitments to corporate social responsibility and the environment.