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When companies purchase green power, it’s with the good intention of contributing to the energy transition. However, doing this right isn’t obvious: most ‘green’ energy purchases do not create new renewable energy, and the most effective solution has historically only been available to the largest companies. The most common way companies purchase green power is to buy Guarantees of Origin (GOs). The logic goes that by purchasing these renewable energy certificates, renewable energy producers receive extra income, creating a stronger incentive for the development of new renewable energy. In reality, these certificates do not create new renewable energy. One reason is that GOs are issued for every MWh of renewable energy - whether it comes from a wind farm built 15 years ago or a brand new solar park. No preference is created for newer parks. Another reason is that GOs are priced too low to send strong price signals that might otherwise stimulate new renewable electricity supply. Fortunately, there is an effective alternative to GOs: special electricity contracts known as a Power Purchase Agreements (PPA). These contracts ensure that a company’s electricity purchase leads to the creation of new renewable energy. Give our new blogpost a 5 minute read and learn more about why PPAs are the most effective green power solution for businesses: https://lnkd.in/eDYJusPD

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