DONG Energy offers subsidised renewable electricity to UK businesses

Utility company DONG Energy will offer UK businesses the chance to purchase renewable electricity at a subsidised rate, by absorbing cost premiums to ensure that green energy prices are no higher than traditional "brown energy" sources.


DONG Energy is hoping that subsidised renewable electricity purchases will enable UK businesses to “achieve their sustainability ambitions” as the utility giant attempts to leverage commercial disadvantages commonly associated with renewables.

“We are taking this bold step because we believe that all businesses should have access to renewable electricity supply without paying a premium,” DONG Energy’s managing director of sales Jeff Whittingham said.

“If we are to embrace a truly sustainable energy future, we will need to take an integrated and forward-thinking approach to energy. One part of this is putting renewable electricity on an equal footing with traditional ‘brown energy’ sources.”

With the Government choosing to remove the Climate Change Levy (CCL) exemptions for renewable purchases last year, DONG has argued that the use of renewable electricity has shifted from an economic opportunity to a “sustainability choice”.

But through companies such as DONG and the Carbon Trust – which certified a 100% renewables product from Smartest Energy last year – businesses now have the opportunity to address sustainability issues on a “level playing field”.

The new subsidy scheme from DONG is the second in a line of financial incentives launched by the utilities company in an attempt to encourage renewable uptake.

Earlier this year, DONG launched a scheme that offers commercial customers financial rewards for turning down their consumption or increasing onsite generation when the wind isn’t blowing.

The financial initiatives from DONG – which has previously pledged to spend £6bn on renewables in the UK by 2020 – come after energy company SSE launched a new 100% renewable energy product, which certifies that businesses purchasing electricity have done so through a renewable portfolio of wind and hydro assets.

Matched to Renewable Energy Guarantee of Origins (REGOs), SSE Green will allow organisations to report zero emitting purchased electricity. Small and medium-sized enterprises (SMEs) have also argued that these types of grants and subsidies should be provided by Government.

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Matt Mace

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