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Natural Capital Partners has recently transacted some of the first unbundled Renewable Energy Guarantees of Origin (REGOs) in the UK on behalf of international companies including Sky and Eden Springs to source renewable electricity for their UK operations. REGOs are becoming increasingly popular as international businesses seek to address their UK-based Scope 2 emissions locally.
Issued by UK electricity regulator Ofgem, REGOs represent renewable electricity that is generated in the UK and added to the UK electricity grid.
REGOs have helped European media company Sky achieve 100% renewable energy sourcing in the UK. Sky has purchased 100% renewable electricity at its sites for a number of years, but through the unbundled REGOs has been able to extend the commitment to leased offices where it does not have the contract with the energy provider. “As part of our ongoing commitment to carbon neutrality, we have set a target to power all our operations with 100% renewable energy by 2020,” says Fiona Ball, Head of Responsible Business. “REGOs allow us to support British renewables while sourcing high quality and reliable renewable electricity.”
Water and coffee company Eden Springs powers its European offices with 100% renewable energy through Guarantees of Origin (GOs) and has sourced REGOs to power its UK offices. By sourcing UK-generated renewable energy through REGOs, Sky, Eden Springs and others are supporting small-scale solar and wind farms.
REGOs work in the same way as Renewable Energy Certificates (RECs) in North America and GOs in Europe to enable companies to cost-effectively source renewable electricity from UK generation sources in line with the requirements of WRI’s Scope 2 Guidance. Historically, REGOs, each representing the environmental attributes of one MWh of renewable electricity production, have been purchased alongside the electricity produced. These recent transactions represent the first few corporate purchases of unbundled REGOs, which are not linked to a tariff or a longer-term power purchase agreement (PPA).
Hitherto, companies with UK electricity consumption have more often sourced instruments from outside of the UK, for example GOs from Norwegian hydro projects. Oliver Crouch, Chief Product Officer at Natural Capital Partners commented: “We are very pleased to see clients taking advantage of this extension to our products, adding REGOs, alongside renewable energy certificate solutions for mainland Europe, North America and the rest of the world. We developed a REGO solution to meet the demand for local renewable energy and these recent transactions indicate a trend for companies with UK operations sourcing their renewable electricity in the UK.”
Read more about REGOs and other renewable energy solutions here.