Renewable Energy Procurement: PPAs, RECs and Green Tariffs
The main ways to power your business with clean energy, and how to tell a meaningful option from a token one.
Buying clean electricity is one of the fastest ways to cut Scope 2 emissions. But not every green option delivers the same impact. Here is how the main routes compare.
Green tariffs
The simplest option is a green tariff from your energy supplier, where your usage is matched with renewable generation certificates. It is easy to set up, though the climate impact depends heavily on the quality and source of the certificates behind it.
Renewable energy certificates
Certificates such as RECs or Guarantees of Origin let you claim renewable electricity by buying the environmental attributes separately from the power itself. Buying them unbundled is cheap and flexible, but on its own it does little to bring new clean generation online.
Power purchase agreements
A power purchase agreement, or PPA, is a long-term contract to buy electricity from a specific renewable project. PPAs are more involved, but they offer price stability and, crucially, can help fund new renewable capacity that would not otherwise be built.
Choosing well
The strongest options are those that drive genuine additional clean generation:
- Favour high-quality, locally sourced certificates over the cheapest available.
- Consider a PPA if your demand is large and stable.
- Always pair procurement with efficiency, because the cleanest kilowatt-hour is the one you never use.
Match your ambition to your impact. The label "renewable" covers a wide range of real-world value.
Not sure which route fits your operations? Get in touch and we will help you weigh the options.
