5 ways your business can buy renewable energy

No matter how passionate your organisation is about clean energy and climate action, the reality is that the electricity we all buy from the National Electricity Market (NEM) is made up of a mix of fossil fuels (~70-80%) and renewable sources. At the end of the day, it’s not possible to choose whether you get the renewable energy or the electricity that came from burning coal. So unless your business runs on its own solar power, you can’t use purely renewable energy in your business. 

However businesses big and small have many reasons to reduce the carbon footprint associated with their energy use and, the good news is, there are a few ways to do this.

1. Generate and use your own renewable energy

The only way to actually use renewable energy is to generate it yourself. We’re talking solar power. 

If you can get solar, you could run your business (either entirely or, more likely, in part) on the clean solar power you generate. 

However this can be expensive and isn’t a viable option for many organisations, especially smaller ones. 

 

2. Buy carbon neutral energy

When you sign up to a carbon neutral electricity plan, your power company will offset the carbon associated with your electricity use with carbon offsets. 

This means the same amount of carbon dioxide (CO2) that is emitted due to your business’ energy usage will be offset by some other means, bringing your business’ carbon output back to neutral. 

However the problem with carbon neutral energy is that, while better than nothing, not all carbon credits are made equal. 

Companies can buy carbon credits from legitimate schemes in Australia that are working to quantifiably and permanently reduce carbon emissions. However they can also buy cheap offshore carbon credits for a fraction of the cost that don’t directly help Australia achieve their renewable targets or that prop up projects such as retrofitting diesel power plants.

 

3. Buy GreenPower

GreenPower is a government-managed program that lets you support renewable energy generation.

When you choose a GreenPower accredited energy plan, like our Evergreen plan, you’re buying 100% renewable energy that meets GreenPower’s strict criteria. 

With GreenPower, your organisation’s electricity usage will be offset with Australian renewable energy generation. The actual electricity you use will still come from the National Electricity Market, however the equivalent amount of renewable energy generation will be added to the electricity grid on your behalf. 

So you can be confident your electricity usage is offset with legitimate Australian renewable energy, helping to reduce not only your own carbon footprint but the whole country's greenhouse gas emissions.

View plan - Evergreen

 

4. Buy LGCs

Sometimes, large organisations may buy large-scale generation certificates (LGCs) directly from the energy market. 

LCGs are certificates (one created per MWh) for eligible renewable electricity generated by a power station. These can then be sold or transferred to companies - usually electricity retailers like Mojo, but sometimes other large companies will buy these direct to offset the emissions associated with their energy usage. 

The problem with this kind of renewable energy procurement is that it can be very complex and the wholesale price of LGCs fluctuate with the market. This can make it difficult to budget. 

Plus, LGCs are completely anonymous and therefore untraceable. Businesses don’t know where they’ve bought their renewable energy from or where it’s gone once it’s in the grid. 

 

5. Buy specific renewable energy easily through Mojo Marketplace 

Mojo Marketplace is our innovative solution that makes it easy for businesses to offset their electricity usage with locally-sourced renewable energy at competitive prices.

In an Australian first, Mojo Marketplace tokenises specific renewable energy generation using blockchain technology. This means, through our platform, we can link your company’s energy consumption to the renewable generation projects of your choice.

The electricity generated by these projects is tokenised so we can prove how much renewable energy each project sends to the grid and match this to your business’ energy usage. 

Let’s compare this to buying LGCs. 

Think of the NEM as a big swimming pool. The water in the pool represents the electricity in our grid and it comes from a range of sources, some renewable but mostly fossil fuels. 

When you buy renewable energy in the form of LGCs, that electricity is like a jug of water you’re pouring into the swimming pool. Completely anonymous and untraceable.

However with Mojo Marketplace, because it uses blockchain technology to tokenise renewable energy generation, it’s like dropping a Lego block into the pool instead. 

So you can easily trace that renewable energy generation and transparently report on it to prove your ESG and CSR credentials. 

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