The importance of balance in a REGO portfolio
A question customers often ask us is “why do you buy REGOs when you already generate your own?”
It’s a valid one – Drax Power Station generates 12-16TWh of power through biomass each year. As Ofgem issues a REGO for each Megawatt hour (MWh) of renewable energy generation, this creates 12-16 million REGO certificates. We also run river powered hydro schemes, which generate relevant REGOs too.
The simple answer to the question, though, is to provide our customers with choice.
Pick ‘n’ mix
Most organisations are satisfied that REGOs provide adequate proof of their renewable consumption. However, certain businesses might prefer REGOs from specific technology types. This may be to align with the nature of their operations, their location or their strategic direction. Others may need to provide additional assurances about the source of their REGOs. Those subscribing to sustainability reporting frameworks such as RE100, for example, may demand certification from generation assets that are no more than 15 years old.
More likely, though, it’s to help prepare them for hourly matching.
Hourly matching involves evidencing the origin of consumed energy on an hour-by-hour basis. Some organisations are beginning to use this more granular method to enable them to report zero Scope 2 emissions and justify their sustainability claims.
A balanced portfolio of REGOs helps these organisations match their consumption to their energy sourcing more accurately. For example, although solar-based REGOs are considered ‘deep green’, it’s not feasible to attribute them to night-time consumption. Put simply, the sun doesn’t shine at night so there’s no solar generation to power operations at that time. Biomass REGOs, for example, could feasibly power an organisation’s out-of-hours consumption.
Generators across the UK
We partner with over 2,300 renewable energy generators, offering tailored Power Purchase Agreements (PPAs) around their needs.
These partnerships enable generators a route to Grid and guaranteed revenue. This revenue supports generator business cases for building additional generation assets – so called ‘additionality’. Additionality stimulates the renewable power industry and supports the UK’s journey towards a net zero electricity grid.
The partnerships also enable us to offer REGOs associated with solar, wind, hydro, combined heat and power (CHP), anaerobic digestion (AD) and landfill gas technologies. And this selection of REGO options gives customers the ability to prove their sustainability credentials in an affordable and/or impactful way.
You can learn more about REGOs or request a call to discuss your requirements.
