Renewable energy?

Hi I have just picked bulb over pure planet…

I liked that fact that at least some gas was from renewable source instead of offset. I figured I could always offset myself.

Id like to know though the difference in the process that allows Bulb to claim 100% renewables sourced. Obviously we all share the gas/electricity that comes from the pipe/cables from a range of sources.

I just need to my get my head round it so that I can spread the message, so when someone says…”you can’t say/know it’s renewable energy as you get the same energy as your neighbour”

Many thanks
Cajb54

@Cajb54, basically, all of the energy you use is offset by the same amount of renewables being added to the grid.

Bulb pay extra to buy renewable generation certificates which certify that all energy they purchase has been generated by a renewable source.
They also send £2 to Trees for Cities for each new member that joins which fullfils their additional green requirement to be able to advertise as a green supplier. Add that to being paperless and a whole load of other environmental and ethical things they do, they sit close to the top of the pile of good suppliers.

Some people would say that you’re just paying for the renewables that would be added into the grid anyway, and although that’s true to an extent, the world works on supply and demand so as more people demand renewables, more renewable generation plants are built.

Hi thanks for the reply. So where/who does this extra cash they pay go to?

Also what would bulb do if the seller said sorry no more renewable credits left??
This makes me a little skeptical to the process but then again I think at the very least it makes the big players look at why their customers are leaving? Like you said supply and demand. :slight_smile:

@Cajb54, basically, all of the energy you use is offset by the same amount of renewables being added to the grid.

Bulb pay extra to buy renewable generation certificates which certify that all energy they purchase has been generated by a renewable source.
They also send £2 to Trees for Cities for each new member that joins which fullfils their additional green requirement to be able to advertise as a green supplier. Add that to being paperless and a whole load of other environmental and ethical things they do, they sit close to the top of the pile of good suppliers.

Some people would say that you’re just paying for the renewables that would be added into the grid anyway, and although that’s true to an extent, the world works on supply and demand so as more people demand renewables, more renewable generation plants are built.

@Cajb54 generators earn revenue from the certificates we buy from them.

Our philosophy, very much in line with @mowcius’s point, is that as more consumers demand renewable energy, renewable suppliers will bid up REGO prices, which theoretically incentivises new renewable production by increasing generators’ revenue per MWh of renewable energy.

An interesting wonkish issue regarding REGOs is that Bulb match our members’ yearly energy use. However, on an hour-by-hour basis, you can still contribute to a greener UK by using energy when the grid is greener (i.e. see https://twitter.com/bulbcarbonbot)

Thanks Andrew, Forgive my ignorance but if the RGOs prices are bid up does this not mean the consumer starts paying even more?

@Cajb54 generators earn revenue from the certificates we buy from them.

Our philosophy, very much in line with @mowcius’s point, is that as more consumers demand renewable energy, renewable suppliers will bid up REGO prices, which theoretically incentivises new renewable production by increasing generators’ revenue per MWh of renewable energy.

An interesting wonkish issue regarding REGOs is that Bulb match our members’ yearly energy use. However, on an hour-by-hour basis, you can still contribute to a greener UK by using energy when the grid is greener (i.e. see https://twitter.com/bulbcarbonbot)

Forgive my ignorance but if the RGOs prices are bid up does this not mean the consumer starts paying even more?
It would be down to Bulb to decide whether to pass that increase on, but the price of REGOs is (currently) such a tiny amount, I doubt it would matter much.

If it’s minimal doesn’t that mean it’s minimal benefit to companies producing it?? Still not massively convinced but I admit I don’t still understand it.

I hope it’s working nevertheless.

Forgive my ignorance but if the RGOs prices are bid up does this not mean the consumer starts paying even more?
It would be down to Bulb to decide whether to pass that increase on, but the price of REGOs is (currently) such a tiny amount, I doubt it would matter much.

@Cajb54 I think the simplest answer has got to be that, in the long run, yes, if REGO prices increase, consumers will pay more.

Let me explain how I think about the cause-and-effect here. (Note that others, even others at Bulb, may think about this differently.)

  • consumers demand 100% renewable electricity
  • suppliers offering 100% renewable electricity scramble to buy enough REGOs to cover all the elec they’re supplying these consumers
  • these suppliers start competing with each other for the REGOs, bidding up the price of REGOs
  • they pass some of these increased costs on to consumers, who are nevertheless willing to pay them because they do not represent a very big portion of their overall yearly electricity spend

My story focuses on the interplay between suppliers and their customers. One important extra question is how generators respond. If they see increased REGO prices, they may expand generation, which would soften the REGO ‘squeeze’.