Issue - decisions

The review of purchasing Renewable Energy Guarantees of Origin (REGOs)

15/10/2024 - The review of purchasing Renewable Energy Guarantees of Origin (REGOs)

36.1     The Lead Member considered a report by the Chief Operating Officer together with exempt information contained in a later agenda item.

 

DECISIONS

 

36.2     The Lead Member RESOLVED to:

 

1) Agree that East Sussex County Council ceases the purchase of Renewable Energy Guarantees of Origin certificates from 1 April 2025; and

 

2) Delegate authority to the Chief Operating Officer to take all actions necessary to give effect to the above decision.

 

REASONS

 

36.3     REGOs are purchased from existing suppliers of renewable electricity, so paying for REGOs does not automatically increase the investment in renewable energy generation. In other words, there is no ‘additionality’ in renewable energy available as a result of purchasing REGOs. The price of REGOs has increased significantly in the last few years, from about 20p per certificate a couple of years ago to a record high of £20 in October 2023 and continue to trade as such. At current prices, this would add about 3.5% to the Council’s unit cost of electricity at a time when the Council is under significant financial constraints.

 

36.4     There is both a financial impact and a reputational risk to East Sussex County Council in continuing to purchase REGOs, with no clear benefit from doing so.