There is still significant doubt within the public sector as to what the definition of Net Zero and Carbon Neutral really are. In order to understand your end goal, it is essential that you fully understand the requirements and stages to achieve before you to start out on your journey, in order to control the financial impact on your bottom line.
To us they are similar but still different:
- Net Zero – your entire operational service delivery has true zero carbon output throughout all activities from inception.
- Carbon neutral – your operations have a carbon footprint that you offset via mitigating activity.
One way in which BiU is engaging with the public sector is on energy-related services such as the procurement of 100% green power supplied with REGO’s (Renewables Energy Guarantees of Origin) and 100% green gas with RGGO’s (Renewable Gas Guarantees of Origin), which is now included within the latest amendment to the annual ERIC (Estates Return Information Collection) that all NHS Trusts are required to submit.
The first public sector framework for renewable energy
In September 2019 BiU launched the first OJEU compliant framework than can offer five different energy mix options for electricity in order to meet public sector requirements.
The energy mixes
- Standard Energy Mix – 93% renewable from any source
- Standard Renewable – 100% REGO backed renewable from any source
- Natural Renewable – 100% REGO backed renewable from Solar, Wind or Hydro
- Specific Renewable – 100% REGO renewable from specific tech(s) & location
- Corporate Power Purchase Agreements (CPPAs)– contract directly with a renewable generator and help enable new-build renewable assets that are 100% REGO backed
Public sector CPPAs
CPPAs are a great way to achieve 100% green for your electricity and also in reducing your energy costs. There are multiple different models an offtaker (contracted purchasing entity and user of the power purchased) can look at with the two most utilised being direct and indirect:
- Direct – generating assets are installed on site and connected directly into your site supply thus reducing your exposure to non-commodity costs. Solutions include CHP (combined heat and power), Solar PV, (ground mount, roof mount and car park canopy), EV charging, battery storage, wind turbine, etc and can be fully funded via innovative arrangements
- Indirect – negotiating and contracting directly with an established renewable generator to bring new renewable capacity to the UK. The energy is then sleeved into your supply contract via our OJEU framework.
Our public sector framework takes an holistic approach to risk management by combining direct and indirect CPPAs and risk managing the remaining volume on the open market via REGO backed solutions, ultimately building a 100% Net Zero/Carbon Neutral risk management strategy for your organisation.
For further information on the services available to the public sector and to understand further how we can help you work toward Net Zero 2050 please get in touch.