Wednesday 11 March 2020

Businesses ‘pushing TPIs towards green energy’

Businesses are pushing third-party intermediaries (TPIs) towards green energy.

That's the suggestion from Cornwall Insight’s TPI Satisfaction Survey, which reveals large consumer-facing companies are now significantly more likely to engage with green energy compared to previous years and highlights that Renewable Energy Guarantee of Origins (REGOs) and Demand Side Response (DSR) are emerging as highly valued services beyond standard energy contracts from suppliers.

It notes in 2020, businesses are more likely to ask their TPI for a renewable quote than in previous years, a change that has been driven by public awareness of climate issues growing.

Sam Holland, Analyst at Cornwall Insight, said: "Larger businesses are under pressure to source both renewable power and gas to fulfil net zero aspirations. However, anecdotal evidence from TPIs suggested significant barriers to the uptake of green gas still exist. In discussions, TPIs reported that premiums for the supply of renewable gas have risen from £3.50/MWh to as high as £11/MWh. This is due to a lack of supply, making it unaffordable for most businesses.

“This shift is set to continue in the future, driven by public pressure on large businesses to reach their net zero targets.”