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What is Green Electricity?
Green electricity is electricity which is produced from renewable energy sources such as wind, hydro or solar power and biomass or landfill gas. In other European countries, consumers are also presented with the option to buy green electricity. This is the case in Germany, Ireland, Sweden, Finland and the Netherlands and consumers in Switzerland also have this choice.
What do I choose?
There are currently two types of products you can choose from in the UK: “green tariffs” and “green funds”.
When signing up for a green tariff, you receive the commitment from your supplier that your electricity consumption will be matched with the same amount in green electricity. It does not necessarily mean that when plugging your kettle, your water will be boiled with green electrons. Electrons come and go freely within the grid and it is impossible to guarantee you that the electricity which powers your home is actually “green”. The supplier needs however to produce or to buy from a producer an amount of power from renewable sources equivalent to your consumption. This electricity is “fed-into” the grid and it is so much electricity from fossil fuel or from nuclear fission which will not be produced. You are doing “your bit”.
Green funds work differently although the overall objective is the same. When switching to a green fund, customers continue to receive “conventional” electricity. The customer asks the supplier to donate a part of the electricity bill to a fund that supports the installation of new renewables production capacity. This donation can translate into a financial increase on your electricity bill. This fund supports your supplier in setting up new renewable energy projects. It means that you help renewables play a greater role in the future power mix, and it is so much electricity from fossil fuels and nuclear power which will not be produced later.
Which supplier do I go for?
There is plenty of choice: 15 suppliers are offering a green electricity product as part of their portfolio. It is for you to see what you want! Visit http://www.greenprices.co.uk/uk/pricegen.asp
Criteria for choice can include:- Price. Green electricity products are often offered at a premium. You want to support renewables but wish to keep the costs as low as possible on your electricity bill? Soon, you will be able to enter your postal code on www.greenprices.co.uk and look what the options are in your area.
- Sources. By switching to a green tariff or a green fund, you can have your say as to which power sources should play a greater role in the United Kingdom’s power mix. Solar, biomass, wind, hydro, etc… the choice is yours.
- Environmental benefits. Communicate with suppliers, link to http://www.greenprices.co.uk/uk/priceinfo.asp , and send emails or phone the suppliers you are thinking of switching to. Ask them questions regarding their commitment to the environment, such as “will my power consumption be matched with green in the span of the same year?”, “how much carbon emission reduction will be offset in one year if I switch to your product?”. You have the right to know how much of a difference you are making.
Do I need to support renewables more than I already do?
This is indeed the question everyone is asking and with a reason. Recent political decisions regarding the increased support to the production of renewables power in the United Kingdom has led to confusion as to the role and the future of green electricity sales. Read more about the current UK policy on renewables: http://www.greenprices.co.uk/uk/greenpol.asp
The Department of Trade and Industry has recently closed a round of consultation on the introduction of a Renewables Obligation, by which suppliers will have to source a certain percentage of their supply from renewable energy sources. In its publication “The Renewables Obligation Statutory Consultation”, the DTI has forecast that the Obligation will translate into a price increase for consumers of electricity in Great Britain of approximately 0.5 % each year until 2010 (total increase of around 5 %). So part of the answer is “you already contribute to the growth of renewables generation capacity in the United Kingdom”.Why should you then support green tariffs or green funds? Green funds and green tariffs are supposed to result in additionality. When switching to one of the two, your supplier should be able to demonstrate that- if it is a tariff- the renewable electricity supplied is not part of the green power that the Obligation requires your supplier to buy or produce or –if it is a fund- that the future installations you are funding will not be counted to cover the supplier’s obligation at a later period.
The current target is that 10% of the UK’s energy supplies should be covered by green energy by 2010. By not signing up to a green product, 10% of your consumption will be covered by green in 2010. Should you decided to buy 100% of your electricity from a green supply, you are going further in your action than the majority of other UK citizens.
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