The price of a Renewable Energy Generation of Origin (REGO) certificate has exceeded £10 for the first time, making the cost of carbon offsetting even more expensive. The price was achieved for Biomass, Wind and Solar PV REGOs in the ePower auction for CP22, the current year. It follows a steadying trend of increasing certificate prices as more businesses drive towards Net Zero.
REGOs were introduced as an effective way to visibly demonstrate the amount of energy a supplier delivers from renewable sources. They're particularly useful as part of a carbon offsetting strategy as they allow organisations to visibly demonstrate their commitment towards reducing the impact of the carbon they consume by generating on-site and purchasing REGO-backed power.
Whilst REGO and other forms of offsetting have definitely resulted in a positive impact on the climate, the increasing price continues to showcase their problematic nature. Regulation was introduced in 2021 to counter REGO's links to greenwashing, as their sale between merchants often meant the electricity could not be properly tracked. They also stopped being recognised by the EU in the same year.
While carbon offsetting has its advantages, the increased costs and lack of reliability have meant it's often prudent to explore alternative means of carbon reduction. These include on-site generation (where excess supply could form part of a REGO) and efficiency measures to reduce your energy usage.
Want to know more about REGOs, carbon offsetting or other ways to lower your carbon footprint? Our net zero team is on hand to support you; schedule a call at a time that suits you through the form below.