Green business

What is renewable energy, how is it generated and why is important to my business?

A: Renewable energy comes from natural sources or processes that constantly replenish such as the sun, wind, waves, biomass and geothermal heat. Unlike energy produced from fossil fuels, renewable energy is a cleaner, more sustainable alternative that won't run out, and it helps reduce your carbon footprint.

Renewable energy has a much lower environmental impact than energy generated from fossil fuels and it can play a role in slowing global warming by cutting the amount of carbon dioxide released into the atmosphere. Because renewable energy is produced from sustainable sources, it won't run out - ensuring security of supply and less reliance on imported fuels - and it could eventually replace fossil fuels altogether.

What are Guarantee of Origin Certificates and how are they regulated?

A: There are various types of Guarantee of Origin certificates, depending on the energy type:

Guarantees of Origin (GoO)

GoOs demonstrate that electricity has been produced from EU renewable sources. One GoO is issued for each megawatt hour (MWh) of renewable electricity that's produced. These are the European equivalents of the UK's Renewable Electricity Guarantees of Origin (REGOs).

Renewable Energy Guarantees of Origin (REGO)

REGOs demonstrate that electricity has been produced from renewable sources in the UK. One REGO is issued for each megawatt hour (MWh) of renewable electricity that's produced.

Renewable Gas Guarantees of Origin (RGGOs)

Are unique identifiers issued by the Green Gas Certification Scheme (GGCS) for each kilowatt hour (kWh) of biomethane (or green gas) injected into the grid and registered with the Scheme. RGGOs provide information about where, when and how the green gas was produced it's your guarantee that the gas is authentic and has not been sold to anyone else.

Renewable Energy Guarantees of Origin (REGO) scheme

The Renewable Energy Guarantees of Origin (REGO) scheme provides transparency to consumers about the proportion of electricity that suppliers source from renewable generation. The scheme is overseen by Ofgem who act on behalf of the Department for Business Energy and Industrial Strategy (BEIS). One REGO certificate is issued by Ofgem per megawatt hour (MWh) of qualifying renewable electricity generated.

> Find out more about the REGO scheme

Green Gas Certification Scheme (GGCS)

The GGCS is a simple and reliable means of tracking the commercial transactions of biomethane (or green gas) through the supply chain to the end consumer, eliminating double counting or double selling of registered green gas. It provides assurance for consumers who buy the gas, confidence in the energy sector and an incentive for gas producers to inject green gas into the grid instead of using it to generate electricity.

The Green Gas Certification Scheme is run by the Renewable Energy Association's subsidiary company, Renewable Energy Assurance Ltd.

How does renewable energy get to my business?

A: We match 100% of the electricity you use on a renewable contract with electricity/gas from renewable sources. This means that for 100% of the electricity you use, the same amount from renewable sources will be fed into the National Grid. For gas we do the same, except we match 10% to renewable sources and 90% to Carbon Offsets.

It isn't possible to trace the gas/electricity from a particular source right through to your business because it is combined with electricity/gas from non-renewable generation in the grid. But we can show that we fully match your supply by buying Renewable Electricity Guarantees of Origin certificates (REGOs) or Renewable Gas Guarantees of Origin (RGGOs) each time we buy electricity/gas from renewable generation.

Why do the Carbon Trust verify your process for allocating renewable electricity guarantee of origin certificates?

A: The Carbon Trust are a global authority on sustainability and carbon reporting. They have detailed knowledge of the energy industry and are well placed to support both the development of our renewable electricity products and verify the process by which we gain renewable electricity verification.

Through the Carbon Trust assured process of tracking and allocating Renewable energy guarantee of origin certificates, we can make sure we don't allocate the same certificate to the electricity consumption of more than one customer, or use certificates from a different reporting year to match with customers' renewable electricity supply.

British Gas are one of a handful of registered electricity providers to gain Carbon Trust verification for our business renewable electricity products giving you complete confidence in the quality and origin of your renewable status.

What is Carbon Neutral Gas?

A: A carbon offset is a reduction in emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere.

Offsets are measured in tonnes of carbon dioxide-equivalent (CO2e).

Carbon Offsetting is accredited through VERS (Verified emission reductions) obtained from certified carbon offsetting projects.

Carbon offset projects help counteract the release of greenhouse gas (GHG) emissions, whilst simultaneously improving the livelihood of people around the world.

We match 10% of the gas you use with Renewable Gas Guarantees of Origin Certificates (RGGOs) which certify that this amount of gas is from renewable generation. Naturally occurring biogas, produced from matter such as leftover food, sewage and agricultural waste, is treated in order for it to be of high enough quality to be used in the gas grid. It is processed to remove impurities and upgraded to a higher methane content which is more comparable to natural gas.

Whenever possible, for the remaining 90% we buy carbon offsets to help neutralise the emissions from the gas our customers use from a Gold Standard Foundation projects from around the world, helping to fund carbon emission savings in other parts of the world.

How can I use the British Gas Renewable products for my corporate carbon reporting?

A: The British Gas Renewable Electricity for Business product enables you to report zero grams CO2 per kilowatt hour Scope 2 emissions from purchased electricity when reporting using the market-based method, in accordance with the GHG Protocol Scope 2 Guidance.

To report carbon emissions according to the GHG Protocol Scope 2 Guidance, you don't need the actual certificates themselves, although you need evidence that we have correctly allocated enough certificates to your supply and that this has been verified, which is achieved through the Carbon Trust assurance process. For large business customers we can provide a list of the certificate serial numbers and will do so annually in September/October. For small business customers a copy of our product-specific Fuel Mix and associated emissions factors can be found on our website.

Emission factors are calculated for each British Gas product by multiplying the megawatt hours of power generated by each type of generation technology for a 12-month period up to 31st March each year (to align with the Fuel Mix Disclosure reporting year) by a corresponding emission factor for each technology type. Emission factors for each technology type are taken from Ofgem, using the published values corresponding to the relevant Fuel Mix Disclosure reporting year. The Ofgem emission factors cover carbon dioxide only, and do not include other Kyoto greenhouse gases [GHGs] such as methane which may be emitted by some forms of electricity generation. Ofgem allocates a zero g CO2/kWh emission factor to all electricity generation classed as renewable, which includes energy from waste and biofuel. For wholesale electricity purchased by British Gas, the UK residual mix emission factor for the corresponding Fuel Mix Disclosure reporting year is used.

For gas, developed by The World Resources Institute (WRI) and World Business Council on Sustainable Development (WBCSD), the GHG protocol sets the global standard for how to measure, manage and report greenhouse gas emissions.