The price of REGOs goes close to £25

Back in July 2023, we wrote about how the price of a Renewable Energy Generation of Origin (REGO) certificate exceeded £10/MWh. That high watermark has now been shattered even further in less than three months, with the price edging very close to £25/MWh, which increases the cost of carbon offsetting.  

The price was reported by e-POWER as the highest level ever with more than 10,000 bids on the certificates. With demand continuing to increase there has even been speculation that the price may go beyond £30/MWh before the end of 2023, and could potentially reach £40/50/MWh in the coming years. 

What is a REGO?

A Renewable Energy Guarantees of Origin (REGO) certificate is a verified document that allows electricity suppliers to demonstrate to their customers the full amount of the electricity that they supply being generated from renewable sources. For customers, they are 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. 

REGOs and other forms of offsetting have reduced the UK economy’s emissions, but the increasing price is reflective of the issues that they come with. 2021 saw a tightening of regulation as a direct response to accusations of greenwashing, that dogged REGOs when sale of them meant power could not be properly tracked.  

Carbon offsetting does continue to have advantages, but these increased costs alongside unreliability mean alternative means of carbon reduction are often more beneficial for an organisation. These include on-site generation (where excess supply could form part of a REGO) and efficiency measures to reduce your energy usage. 

Book a meeting with one of our experts today

Do you need to know more about REGOs, carbon offsetting or other ways to lower your organisation's carbon footprint? We're here to guide you, schedule a call with one of our net zero experts through the form below.