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What are green electricity offers?

Jul 24, 2022

#Renewables

After COP26 held in Glasgow in October 2021 and in the context of the global climate crisis, green energy occupies a significant place in the global political debate. More and more businesses want have energy contracts which display their green commitment.


To meet this demand, energy suppliers have developed new offers that are supposed to increase green electricity. This involves supplying electricity from renewable sources (wind, solar, hydro, etc.).

But what do such offers really cover? Does subscribing to these contracts really lead to a green commitment?


Bramo Energy helps you review this topic more clearly.



Green electricity: what is it?



Green electricity, invisible from the grid.


First of all, you should know that you do not have the possibility of controlling the origin of the electricity which reaches your meter from the public distribution network. In fact, it is not possible to make a distinction between electricity from renewable sources to those from traditional sources (nuclear power stations for example).


If you absolutely want to consume electricity that comes from renewable energy production facilities, you will have to consider becoming a producer yourself by installing photovoltaic panels on your land, for example, to be self-sufficient. But we will only talk here about green electricity supplied by the public distribution network and not self-production.


Connecting to the electricity network therefore means accepting that you don't know where the electricity you actually use comes from, however purchasing green electricity contracts should encourage the increase of renewable energy production facilities.



The complexity of the green electricity market.


As mentioned before, by subscribing to a green electricity offer, you will not necessarily consume electricity produced from the wind or solar panels, however your supplier commit to place into the network a quantity of green electricity equivalent to the one you actually consume. It is therefore a system that works by equivalence.


In order to be able to justify this, suppliers purchase Guarantees of Origin (GO) from renewable energy producers. These green energy producers can, in proportion to their production, sell certificates to suppliers which will guarantee the placement into the network of a certain quantity of electricity.


This mechanism of European certification by the Guarantees of Origin has been the subject of numerous criticisms.

Its critics think that it would allow certain suppliers to "greenwash" by marketing green offers that are not really green. These suppliers would continue to generate energy from polluting facilities such as gas or coal-fired power stations, even if they buy guarantees of origin from green producers to be able to market their so-called green offers.


This system does not strongly encourage the production of new renewable energy, and the cost of purchasing the guarantees are obviously passed on to the end customer, therefore increasing the cost of the electricity invoice.



Check the terms !


If you are keen to choose a green electricity offer, in order to show your commitment to the green energy transition, you must take a few precautions before signing your contract.


You should check under what conditions your supplier participates in the renewable energy market. To do this, consult their terms and conditions and look at their certificates.


You can also look at the place of renewable energy productions that your supplier purchases from.


Finally, remember to carefully read the tariff information sheet linked to the contract, before agreeing what you pay for green electricity.



If in doubt, feel free to contact us.

Bramo Energy is on your side.







Would you like to know more?

Or do you have any questions about one or more of these topics?


Feel free to contact us at hello@bramoenergy.com.



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