Over a third of households in Great Britain (GB) could be on electricity tariffs marketed as green. However, many households are confused about what it means to be on a green tariff.
There are two main ways GB electricity retailers source renewable energy: either directly through power purchase agreements (PPAs), with accompanying certificates of origin, or from the wider wholesale market, purchasing certificates separately to certify that power as renewable. The purpose of certificates is to verify the origin of renewable energy, whereas PPAs are contracts to purchase energy directly from generators.
Using data provided by a number of suppliers, this article explores differences in how suppliers justify the tariffs they market as green, and draws out the economic implications for financing of renewable generation and the green transition.
Related Insights
What will enable the development of Australia’s offshore wind industry?
We explore the factors needed to foster the build out based on our quarterly reference case.
Read more
Baringa congratulates EDF Renewables and Maple Power on winning French offshore wind tender
Baringa supported the consortium as a market advisor by providing insights and power market projections for the project.
Read more
Baringa congratulates Amarenco on financing of 105 MW battery storage asset in the French market
Baringa has supported Amarenco throughout the development and financing process as commercial advisor.
Read more
Baringa supports R.Power Renewables on investment of €150 million by 3SIIF
As a sell-side commercial advisor, Baringa provided market advisory across continental European markets.
Read more