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Back in October 2021 as part of their plans to achieve Net Zero by 2050, the UK government committed to decarbonising the UK electricity system by 2035. As we head into 2023, we have just 12 years left to make that a reality. That may seem like a long time but in Quarter 2 of last year, just 38.6%* of electricity generation was from renewables. This was up from 37.3%* during the same period in 2021. To meet the 2035 target there is an urgent need for the adoption of renewable generation sources such as wind, solar and tidal.

If your business isn’t currently on a renewable electricity contract, it is time for you to start looking at your options. To help you understand how you can make renewable electricity part of your future we have put together this article to explain what renewable energy is, the benefits of using it compared to brown electricity and what the future of renewables looks like.

What is renewable electricity?

According to the UN, renewable energy is “derived from natural sources that are replenished at a higher rate that they are consumed”. This means that they can’t be exhausted, and we will never have a shortage. Examples of renewable sources are wind, solar and tidal. Producing energy from these sources has a lower impact on the environment as they don’t release harmful chemicals into the environment, unlike brown energy sources such as coal and gas.

People often question how the UK can run on renewable energy as it not always windy or sunny, especially in the UK! However renewable energy can be stored and released into the grid so that there is a constant supply of electricity even if it is not windy or sunny.

What are the benefits of renewable energy?

There are three main benefits of the UK increasing the amount of electricity being generated from renewable sources.

Security of supply – The war in Ukraine has shown the impact that international incidents can have on the raw materials we rely on to generate electricity and subsequently the cost of energy for businesses. Generating more electricity in the UK through renewable sources, that will never run out, will give us greater protection against outside influences.

Lower cost energy – Currently^ there is a premium on renewable electricity direct from the grid, this is due to high demand from businesses looking to reduce their carbon footprint. However, if you were to source your electricity through a PPA or install onsite generation assets such as solar you can access renewable energy at a substantially lower cost.

Creating a healthier planet – Unlike electricity generated from fossil fuels, electricity generated from renewable sources such as solar and wind does not contribute to climate change or local air pollution. So, a move to renewables will slow climate change and improve air quality in the UK.

How can you access renewable energy?

There are three main ways your business can access renewable energy, the first of these is through procuring renewable energy. In the UK, all of the big energy suppliers offer renewable tariffs, with some suppliers like Bright, Good Energy and Ecotricity only offering renewable energy.

The second way is to enter into a Power Purchase Agreement. A PPA is a long-term contract (usually a minimum of 10 years) where a renewable generator and an end user agree the supply and purchase of renewable energy from a specific generation asset. The PPA gives the purchaser electricity at a price below market rate as well as budget certainty for the contract period. You can find out more about PPAs here.

The third way is to install onsite generation assets such as solar panels. We are helping businesses across the country connect to onsite solar generation through our eSolar solution. For many businesses investing in solar isn’t a priority right now due to the capex costs. Which is why we developed eSolar. There is no upfront capital investment required, you simply pay a monthly subscription fee.

How can eEnergy help?

Our vision is to make Net Zero possible and profitable for all organsiations. Helping businesses transition to renewable electricity is a fundamental part of achieving our vision. That is why we offer a range of services to support that transition, whether it is via procurement, a PPA or onsite generation.

Contact our team today on 020 3813 1550 or email us at [email protected] so we can help you identify the best way for your business to transition to renewable electricity.

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^correct at time of publication – 03/01/2023


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