EnergyTag unveils hourly price certificates to incentivise renewable investment
EnergyTag has unveiled its framework for accurately reporting the role of renewables in electricity generation, so that energy users will know where their power comes from.
The industry-led energy initiative – which is also backed by over 100 organisations including Google, Microsoft and PwC – has developed certificates of hourly measurements for electricity generated from renewable sources, hoping to support clean power through price signals.
These would replace existing yearly certificates, with EnergyTag believing it could incentivise companies to use renewable energy at times of high supply and to bolster renewable capacity at times of sstrong demand.
Energy Tag hopes its latest guidelines will be the next step in making its electricity certificates an internationally recognised and tradeable instrument.
Toby Ferenczi, founder of EnergyTag told City A.M. the new certificates will be priced according to real world supply and demand.
He said: “Hourly sourcing does not need to be more expensive for consumers and will help overall reduce dependence on fossil fuels like natural gas which have been responsible for significant energy price rises lately.”
The founder believed that the certificates would incentivise industry investment, with the system compatible with existing energy schemes.
He said: “One of the key benefits of hourly certificates is the ability to harness consumer demand to send a razor-sharp price signal, helping to incentivise investment in the generation and storage technologies needed to decarbonise energy grids, in the locations they are needed. This gives power to consumers to drive investment in the technologies needed to decarbonise the grid.”
He revealed the standards put forward by the initiative would be used across 10 projects in the US, UK and Europe this year.
The move could be highly appealing to consumers, as soaring wholesale gas prices have contributed to a huge spike in energy costs.
Nearly 30 suppliers exit the market over the past six months, due to the combination of soaring wholesale costs and the constraints of the price cap, with household energy bills set to rise to nearly £2,000 per year next month.