Monday, May 24, 2010

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Switching to Green Electricity? It's a ROCky road...

I could say that one of the easiest ways to reduce your carbon footprint is to switch to a 'green electricity tariff'. Unfortunately it is not quite so simple...

There are two types of green tariff:

1. "Green Supply" - you purchase electricity which is guaranteed to come from a renewable source.

2. "Green Fund" - you pay a premium which is invested in building new renewable energy projects.

Straightforward so far?

However, every electricity generator is obliged to generate a certain amount from renewable sources (the Renewable Obligation). Last year this was 5.5% and it should go up to 15% by 2015. If a generator falls short of this, they have to buy certificates (called ROCs - short for Renewable Obligation Certificates) from someone who generates more than their obligation.

Posted by andha
at 7:07 PM
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