Many Australian businesses are thinking more seriously about what they can do to reduce their carbon emissions in 2022.
For companies looking to achieve carbon zero, GreenPower is a great step towards reaching that goal.
Buying GreenPower equates to net zero greenhouse gas emissions by matching your business’s electricity use with renewable electricity that’s been added into the grid on your behalf.
It is a government-managed program that ensures individuals and businesses wishing to buy accredited renewable electricity can rely on approved and audited GreenPower providers. The program aims to support greater renewable energy generation in Australia.
GreenPower purchases are additional to Australia’s Renewable Energy Target, and an extensive two-tier auditing process ensures that no double counting can occur. When buying GreenPower you can be confident that your renewable energy and carbon reduction claims are assured and can be verified.
GreenPower is the preferred way to achieve an accredited reduction in emissions in the National Australian Built Environment Rating System (NABERS) program, and you can use your renewable energy purchases to improve your performance under NABERS. GreenPower is also a great way of achieving additional points under the Green Star program. Under Australia’s National Carbon Offset Standard (NCOS), which is a voluntary standard that allows organisations to achieve carbon neutrality, GreenPower purchases are considered a zero-emission electricity source.
There are numerous ways your business can purchase GreenPower. If you’re already a Next Business Energy customer, contact us to talk about selecting Next GreenPower for your electricity plan. You can also buy GreenPower from an independent provider, decoupled from your electricity agreement.
Some new and innovative ways to buy GreenPower include Power Purchase Agreements between your organisation and an accredited generator using GreenPower Corporate Direct, and GreenPower Connect. With GreenPower Connect, you are signing a Power Purchase Agreement (PPA) with a new (not existing) renewable energy generator, and you can point to that specific generator in your marketing materials. Large energy users may also save costs with these options compared to traditional GreenPower.
The cost of renewables has historically been higher than the cost of fossil fuel energy generation due to the underlying cost for renewable electricity certificates, which is one of the reasons it is currently more expensive to buy GreenPower. However, you can lower GreenPower costs significantly by comparing prices of different providers, going to tender, or by securing long-term Power Purchase Agreement contracts. The cost of GreenPower has also reduced significantly over the last couple of years and will continue to do so with more renewable electricity generators (and therefore LGC supply) coming online. You can also use savings from energy efficiency projects to fund GreenPower purchases, resulting in zero net costs to your business.
Towards carbon zero
Decarbonising electricity use is an integral part of reaching net zero carbon emissions by mid-century as per the Paris Agreement.
The Paris Agreement establishes a global goal to hold average temperature increases to well below 2°C and to pursue efforts to limit warming to 1.5°C above pre-industrial levels. Greenhouse gas emissions need to be reduced, both by government action, as well as through initiatives by businesses and households. To achieve the goals of the Paris Agreement, global emissions have to reach “net zero” by the middle of this century. A number of state governments in Australia have set aspirational targets to reach net zero emissions by 2050 or earlier.
Replacing fossil fuel energy generation with renewable power is one of the most important actions to reduce greenhouse gas emissions, which is why more and more Australian businesses are looking to install and purchase renewable energy.
Carbon emissions should be avoided directly at the source whenever possible. For business owners, this means looking for opportunities where your organisation’s energy consumption can be reduced. For example, you may install LED lights, improve the efficiency of electric motor systems, or change to more energy efficient business practises. Every kWh that you can reduce through energy efficiency does not need to be produced and paid for.
Visit this page to learn more about GreenPower or enquire about Next GreenPower.