Green electricity in the United Kingdom

From Wikipedia, the free encyclopedia

A wind turbine at Greenpark, Reading, England, generating green electricity for approx 1000 homes.
A wind turbine at Greenpark, Reading, England, generating green electricity for approx 1000 homes.

There are a number of suppliers offering 'green' electricity in the United Kingdom, either supplying electricity from existing environmentally friendly energy sources, promising to invest a proportion of profits into new renewable energy generating capacity, carrying out carbon offsetting, or some combination of these approaches.

Care needs to be taken in selecting a green energy supplier. A National Consumer Council report in December 2006 concluded that many green tariffs are not delivering the environmental benefits they claim to, and that consumers may not be making the positive contribution they think they are.[1]

Contents

[edit] Shades of green

[edit] Renewables Obligation

In the United Kingdom, suppliers are legally obliged to purchase a proportion of their electricity from renewable sources under the Renewables Obligation and there is a danger that energy suppliers may sell such green electricity under a premium 'green energy' tariff, rather than sourcing additional green electricity supplies.[2] In addition to selling the green electricity to the consumer, it is also possible for the supplier to sell the associated Renewables Obligation Certificates to another supplier who has failed to meet their quota, rather than 'retiring' the certificate from the marketplace.[3]

[edit] Climate Change Levy

Non-domestic consumers can avoid paying the Climate Change Levy by acquiring Levy Exemption Certificates from renewable energy suppliers. Since these are not required by domestic consumers, it is possible for the supplier to sell the certificates to the non-domestic sector, as well as selling the renewables obligation certificate and the electricity.[3]

[edit] Carbon offsetting

See also: carbon offset

In other cases green energy tariffs may involve carbon offsetting, rather than purchasing or investing in renewable energy,[4][5] a practice that does not meet with universal approval. George Monbiot, an English environmentalist and writer, has compared carbon offsets to the practice of purchasing indulgences during the Middle Ages, whereby people believed they could purchase forgiveness for their sins (instead of actually repenting and not sinning anymore). Monbiot also says that carbon offsets are an excuse for business as usual with regard to pollution.[6]

[edit] Certification schemes

In 1999 the Future Energy national certification scheme for green electricity was launched, however it was closed in 2002, apparently because too few suppliers were prepared to accept the proposed revised requirements.[7]

In the absence of a replacement national scheme in the UK, the international Eugene Network, whose main purpose is to give accreditation to national green energy schemes, supports Ecotricity[8] and indicates that Good Energy would be ready for accreditation should a Eugene Standard compliant scheme be introduced in the UK.[9]

Ofgem are proposing a voluntary scheme for independently verified energy ratings[10] for electricity suppliers.

[edit] See also

Energy Portal

[edit] External links

[edit] News

[edit] References

  1. ^ "Reality or rhetoric? Green tariffs for domestic consumers", The National Consumer Council, Dec, 2006. 
  2. ^ Green Electricity... Are you being conned? The Ecologist, published 2005-06-01, accessed 2007-06-07
  3. ^ a b Why Friends of the Earth no longer produces a green electricity tariff league table, Friends of the Earth, published July 2005, accessed 2007-06-13
  4. ^ "Reality or rhetoric? Green tariffs for domestic consumers", The National Consumer Council, UK, Dec, 2006. 
  5. ^ GRÁINNE GILMORE. "Grey areas with green energy", The Times, January 6, 2007. 
  6. ^ "The trade in carbon offsets is an excuse for business as usual" by George Monbiot, The Guardian, October 18, 2006. A reprint of the article may be accessed at on Monbiot's website. Also see "Carbon Offset Business Takes Root" by Martin Kaste, NPR, Nov. 28, 2006.
  7. ^ Consumers left in the dark over green electricity, Friends of the Earth, published 2002-11-06, accessed 2007-06-08
  8. ^ Ecotricity - committed to new renewable energy Eugene, accessed 2007-06-07
  9. ^ Case Study: UK market lacks information Eugene, accessed 2007-06-07
  10. ^ New energy ratings to help cut through green customer confusion (press release), accessed 2007-11-07