Greenwashing in the Energy Sector
Transitioning to renewable energy is essential to meet the net-zero targets by 2050 and we are determined to do our bit to meet this goal.
Our Community Power tariff supplies renewable electricity by sourcing power from community renewable generators to match every unit our customers use over a year.
However, this is not always what is happening in the energy market. Some companies are buying renewable energy certificates, and claiming to be 100% green, but in fact they are using a mix of renewable and fossil fueled energy.
What is Greenwashing?
‘Greenwashing’ is when a corporation presents themselves as ‘green’ when, in reality, they are not realistically reducing their environmental impacts to the extent that they appear to be. Unfortunately, this is becoming increasingly common with the rise in environmentally conscious consumers. 62% of UK energy consumers say their purchasing decisions are influenced on how green an energy tariff is perceived to be. That’s why we look to provide transparency on our green practices.
Purchasing Community Power helps us incentivize carbon-neutral renewable energy systems, such as solar, collar, wind, and hydro power. We support and provide the electricity producers with the funds to continue generating electricity from these renewable sources, allowing us to continue to provide 100% sustainable energy.
Trading Green Certificates (REGOs)
When a company generates 1000 units of renewable electricity, the industry regulator OFGEM provides the generator with one ‘green’ certificate. This certificate is presented as the ‘Renewable Energy Guarantee of Origin’ (REGO) which certifies the energy as green.
You’d think this certificate would provide transparency, however, there’s a seperate market for these certificates which is not legitimately related to the power market. In fact, REGOs can be seen as a loophole that allows suppliers to become seemingly ‘green’ for a small price and without actually forming relationships directly with renewable generators. Yes, there’ll be some green power in their fuel mix – but the rest will be made up of non renewable energy resources – definitely not as green..
Suppliers like these make it very difficult for consumers to make informed choices about the type of tariff they’re choosing. That’s why we make it transparent.
Our Green Commitment at Your Co-op Energy
We have partnerships with over 80 local projects around the UK. We buy their energy directly through Power Purchase Agreements (PPAs), giving community generators a sincere and fair price for the power they produce. This means that more green energy gets pumped into the grid for everyone’s benefit. We’re a supplier that thrives on building new sources of renewable energy.
We’re making a difference, and it’s easy for you to do so too. Choose our Community Power, a truly green way to generate power and live sustainably. Purchasing Community Power means you can support your local communities across the country and do your bit to support the environment.