Incorporating renewable energy into your business can help support your sustainability objectives and energy efficiency. Don’t know where to start? We outline three ways you can use renewable energy in your business today.
Procuring GreenPower as part of your electricity contract is one of the simplest ways to meet corporate renewable energy targets. When you purchase GreenPower, retailers commit to purchasing the equivalent amount of renewable electricity for input into the grid from accredited renewable energy generators such as wind and solar. GreenPower renewable energy comes from 100% renewable energy sources, can be locked in at a fixed price, and provides confidence that your emissions reductions are credible.
Additional Large-scale Generation Certificates (LGCs)
Large-scale Generation Certificates (LGCs) are created under the Australian Government’s Renewable Energy Target (RET), a scheme designed to reduce greenhouse gas emissions in the electricity sector by encouraging the development of renewable energy generation resources. Liable entities are required to buy and surrender LGCs to the Clean Energy Regulator (CER) to comply with mandatory scheme obligations. For customers looking for renewable energy options, additional LGCs can be purchased and then surrendered to the CER. Additional LGCs can be used by businesses to certifiably demonstrate their commitment to renewable energy and carbon emissions targets. LGCs can also be created by renewable energy projects on your site (more below).
Power Purchase Agreements (PPAs)
PPAs can be structured in many ways and are a financial agreement (as opposed to a physical supply arrangement) where you notionally purchase a percentage of the output of a renewable energy project such as a wind or solar farm, and that energy is supplied into the grid. They can also include renewable energy certificates such as LGCs for your business to claim a reduction in greenhouse gas emissions from electricity generation. PPAs can offer price certainty for periods where a fixed retail price applies, and support investment in renewable energy generation and developments. If a renewable energy generator such as a wind or solar farm is new or under construction, these agreements can help it secure financial backing to underpin development.
We help customers plan, design and install small-scale or large-scale on-site renewable projects, including solar and Battery Energy Storage Systems (BESS). Eligible projects can generate Renewable Energy Certificates (RECs) including LGCs, STCs and other environmental certificates.
Large-scale energy projects
Renewable energy projects on your site can generate electricity for your business as well as create LGCs to offset project costs.
The most common on-site large-scale energy projects are solar and wind, however, other eligible projects can include landfill and sewerage gas eligible biomass.
Small-scale energy projects
Your business can create Small-scale Technology Certificates (STCs) for on-site small-scale renewable energy systems including solar panels (photovoltaics), solar water heaters, small-scale wind and hydro systems, and air source heat pumps. You benefit from the electricity produced as well as from the creation of certificates to help offset project costs. STCs create a financial incentive to install small-scale renewable energy systems by offsetting upfront installation costs.
Renewable Energy Certificates (RECs) and other State based environmental scheme certificates and credits can be created from eligible renewable energy projects to offset costs, while carbon credits provide incentives for businesses to implement projects that reduce, remove or avoid greenhouse gas (GHG) emissions, or can be utilised to support net-zero objectives where emissions cannot be avoided.
Shell Energy can provide you with insights on each of the environmental certificate markets and assist you to maximise value across the different schemes, including certificate creation.
We also help businesses access carbon credits sourced from a mixed portfolio of Australian and carefully chosen international carbon credits.
The Renewable Energy Target
RECs (LGCs and STCs) are created as part of the Australian Government’s Renewable Energy Target Scheme. The scheme is intended to provide opportunities for renewable energy systems across a range of technologies and scales, and to allow flexibility for new and innovative business models.
Eligible renewable energy projects can generate LGCs or STCs depending on the size of the system and the energy produced.
Wherever you are on the renewable energy journey, we can help. Contact us to find out how renewable energy can work for your business.
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