Carbon Trust concern over green electricity tariffs

 

London - A number of electricity supply companies currently sell renewable electricity tariffs, often referred to as “green” tariffs. However, despite the potential emission reduction benefits, there is currently significant uncertainty over whether these tariffs achieve any new renewable capacity or carbon saving beyond that created by regulation. In addition, there are concerns about potential double counting of the carbon benefit from renewable generation.

 

The problems, according to the Carbon Trust, are in part linked to the limited information about the real benefits and nature of renewable tariffs that is currently available to the end purchaser. Meanwhile, it adds, the current market structure leads to the possibility of renewable electricity being allocated to more than one end user.

 

For its part, Defra recommends that organisations calculate emissions from renewable tariffs using the average electricity emissions factor for the UK. In addition, for reporting under regulations such as the Climate Change Agreements, Carbon Reduction Commitment. Organisations should also use the average electricity emissions factor for the UK for renewable tariffs.

 

According to the Carbon Trust, it does not consider renewable tariffs as “zero carbon” for the purposes of "carbon footprinting" of products, services, companies or their supply chains. Therefore, it advises,  the standard electricity emissions factor should be used when calculating emissions from renewable tariffs.

Ofgem is currently working on rules to govern the future sale of renewable tariffs, while Defra also plans to consult on the treatment of the environmental benefits of green tariffs. However, any future carbon reduction claims, based on the use of renewable tariffs, will require further resolution of the additionality and double counting concerns raised above, the Carbon Trust concluded.