Transport for London - energy procurement (2)

Meeting: 
MQT on 2017-12-14
Session date: 
December 14, 2017
Reference: 
2017/4986
Question By: 
Caroline Russell
Organisation: 
City Hall Greens
Asked Of: 
The Mayor

Question

Thank you for your answer to my question 2017/4327 in which you said that "TfL currently uses the Government's buying framework to procure its electricity which delivers considerable cost savings for the business. TfL has investigated procuring renewable energy through the framework; however this would mean paying a premium".  Can you explain why procuring renewable energy through this framework will mean 'paying a premium'?

Answer

Answer for Transport for London - energy procurement (2)

Answer for Transport for London - energy procurement (2)

Answered By: 
The Mayor

To purchase renewable energy from a generator, the supplier also has to purchase the Renewable Energy Guarantees of Origin (REGOs) certificates. The value of the REGOs is market related, currently around £0.30/MWh - £0.40/MWh. This premium to the unit cost of the power is passed onto the customer i.e. Transport for London when it purchases the power.