The purchase of energy, electricity and gas by government agencies, and a growing number of energy collectives, is often done by a call for tender¹. The volumes purchased by collectives are continually increasing. Calls for tender, both mandatory (public) processes and those done voluntarily, are becoming the norm in the area of electricity and gas. This holds for the purchase of GREEN gas and/or GREEN electricity as well. It is a race for the best price, often the most important criterion for awarding the contract.
Unbundling energy and greening
Climate Neutral Group is increasingly being approached about greening by parties that supply energy (natural gas and electricity) or which provide advice on the purchase and delivery of energy. When the ‘greening’ is separately tendered, CNG will often get the request directly. Sometimes we offer it to organizations on our own initiative.
We call the separate ‘greening’ the unbundling of the delivery of energy and the greening of it.
By purchasing the greening separately, more and different greening specialists enter the picture. This allows for more transparency: you know what you pay for the greening and what you get for it. Organizations find this increasingly important. Purchasing green power that later proves to be not so green can be expensive for an organization if it faces criticism based on the latest available information. How sustainable are you really and how green is your green energy? Sometimes it is not clear what you are getting and what you are paying for because everything is hidden in one price – not convenient if your organization would like to be transparent.
Climate Neutral Group and the greening of gas
Greening gas is always done with Carbon Credits. Climate Neutral Group offers Carbon Credits from its own portfolio, Gold Standard or VCS. We also deliver custom plans which meet the requirements specified by the tender. CNG is almost always able to meet clients’ wishes at a favourable price, through its network in the world of Carbon Credits. With one qualification… the requirements need to fall within the quality criteria used by CNG. This also applies to the greening of electricity.
Climate Neutral Group and the greening of electricity
Electricity can be greened with Carbon Credits or with Guarantees of Origin (GOs). GOs are certificates that are supplied with sustainably generated power. CNG prefers to green with Carbon Credits. The main reason is that the principle of additionality applies with Carbon Credits. This means that Carbon Credits from Gold Standard and VCS projects are generated by carbon financing, the cash flow generated by the sale of Carbon Credits. But there are also more benefits to Carbon Credits that we clearly show here.
The value of offsetting through climate projects is made evident through a study carried out by the Imperial College in London on behalf of ICROA:: “Unlocking the hidden Value of carbon offsetting”.
CNG can also offer GOs if a tender calls for them, but is very critical in choosing them. The origin and the source are extremely well checked. CNG applies the SKAO (CO2 performance ladder) quality criteria to the purchase of GOs and is now affiliated with the Green Deal National Emission Factors, which also looks at the quality and origin of GOs prior to assigning an emission factor to a certain type of GO. An organization can therefore be certain that the electricity has been properly greened, with certificates from real renewable sources.
Are the costs of (green) energy crucial?
For organizations which put out a call for tender for their energy use, whether voluntarily or because they must, the volumes of electricity and gas are so high that they can get a good price for electricity, gas and greening. Pay attention to the quality! CNG can assess contracts to determine their sustainable value and has a lot of experience doing so. When the green energy discussion became heated, we examined our existing clients’ contracts, with surprising results.
If your organization uses small volumes of energy, consider joining an energy collective. There are now many options for companies. There are also collectives which provide purchasing power when it comes to reduction by means of solar panels, insulation and other measures. The best part, of course, is emitting less CO2!
¹ A call for tender is a procedure where a client makes known that it would like an external supplier for an assignment and asks companies to submit tenders. There are different types of procurement processes, the most important of which are public and private.
“Unlocking the hidden Value of carbon offsetting” – ICROA
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