OVO to invest £1m to support new wind and solar farms
07 July 2022
- By supporting subsidy-free REGOs, OVO can incentivise new small-scale generators to provide more clean, green electricity for households across the UK.
- OVO launched Plan Zero, its sustainability strategy, in 2019 with the ambition of leading the transition to a zero carbon energy system.
- OVO aims to stimulate further growth in the renewable energy sector, moving the UK further towards its net zero targets.
Thursday 7th July 2022: OVO is the first supplier to commit funding to specifically support subsidy free REGOs, helping to incentivise more small-scale, independent wind and solar farms by offering them an above market price for the electricity they generate.
By providing a premium value for REGOs from renewable generators that have not received any subsidy from Government or industry backed schemes, the initiative’s aim is to create a thriving market that will directly drive new investment in renewable assets in the UK, supporting the UK’s net zero goals. For new schemes that are not eligible for government funding, securing this additional revenue stream could make the difference between a renewable development going ahead or not.
UK households are facing unprecedented high energy costs during a cost of living crisis. It is more important than ever that we continue to direct investment towards new renewable generation, which will increase the UK’s energy security and reduce costs for consumers in the long term.
When renewables first started to flow into the National Grid, subsidies were offered to both large and small generators to encourage the UK’s transition away from fossil fuels. As the industry grew, the subsidies for small, independent generators were phased out.
REGOs guarantee for every unit of electricity suppliers sell, a unit of renewable energy is added back to the grid. Over 100m REGOs are bought each year to back renewable electricity supplies. At current REGO prices, UK businesses and consumers will voluntarily pay over £500m per year to support renewable generation in the UK through choosing renewable supplies. OVO believes that even more can be done to directly support new renewable schemes in the UK and to ensure that REGOs are working harder to underpin incremental investment in small-scale generators.
OVO is committing £1m to offer premium Power Purchase Agreement (PPA) contracts to renewable generators who are not eligible to receive subsidies through any Government or industry backed schemes, furthering its support for UK renewable generation. OVO expects to have its first subsidy free REGO PPA contracts signed by the end of the year.
Raman Bhatia, CEO of OVO, said:
“We’re committed to supporting investment in renewable energy generation across the UK, striving to bring more renewables onto the grid and taking huge steps towards reaching net zero. Going forward, we're open to working with government and regulators to develop the Retail Energy Market, and the Green Certificate Markets, to ensure that they work effectively to encourage investment in new renewable generation here in the UK, supporting the industry and moving the UK further away from reliance on fossil fuels.”
Notes to Editors:
Generators can find out more about how to apply via https://www.ovoenergy.com/selling-your-energy-to-ovo
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OVO was founded in 2009 and redesigned the energy experience to be fair, effortless, green and simple for all customers. The company has spent the last decade investing in the market leading technology, customer service operations and digital products to help members cut their carbon emissions. OVO is on a mission through its sustainability strategy Plan Zero to tackle the most important issue of our time; the climate crisis, by bringing our customers with us on the journey towards zero carbon living. OVO has committed to being a net zero carbon business and achieve bold science-based carbon reduction targets by 2030, while helping members reduce their household emissions at the same time.