Notes to editors
- DONG Energy is one of the leading energy groups in Northern Europe, headquartered in Denmark. Around 6,700 ambitious employees - including 700 in the UK - are engaged in producing energy from offshore wind farms, bioenergy and thermal heat and power plants, oil and gas fields; as well as providing energy solutions to residential and business customers.
- Group revenue was DKK 71bn (EUR 9.5bn) in 2015. For further information, see www.dongenergy.com
- DONG Energy is one of the largest developers and operators of offshore wind, with ownership share of around 43.8% of the offshore wind farms installed in the UK. (DONG Energy in the UK, February 2016)
- DONG Energy's renewable electricity comes from 100% offshore wind and can be reported as zero CO2 emissions in World Resources Institute (WRI) greenhouse gas Scope 2 market based reporting.
- This announcement follows the recent launch of DONG Energy's Renewable Balancing Reserve product to the market – enables businesses to generate revenue and achieve cost savings through utilising their flexible consumption and generation
- DONG Energy is ranked 10th most sustainable company globally by Energy Intelligence (October 2015)
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In 2001, the Government introduced the Climate Change Levy, a tax designed to encourage businesses to use less energy. Businesses that purchased renewable electricity could gain exemption from the tax by purchasing Levy Exemption Certificates (LECs). This drove a high demand for renewable supply in the UK and resulted in renewable electricity selling at a similar or lower price to brown electricity.
Last year the Government announced that the exemption would be phased out from August 2015. As a result, demand for renewable electricity has once again become a sustainability choice for businesses.
The Renewable Energy Guarantee of Origin (REGO) certificates, used as evidence for the source of renewable electricity supply, now hold a value in the market and renewable electricity is sold at a premium to brown. Businesses leading in carbon reduction have paid this premium for renewable allowing them to report lower carbon emissions in market based greenhouse gas (GHG) assessments and therefore receiving the reputational benefits of committing to sustainability.
As a leader in the development and operation of offshore wind in the UK, DONG Energy believes that all businesses should have access to renewable electricity supply without incurring additional cost. Today's move not only underpins the business's vision to lead the energy transformation, but also demonstrates that it is accompanying its customers on the journey.
Jeff Whittingham added: "We are making this announcement at a time of tight budgets and fierce competition for businesses of all types and sizes who are under growing pressure to reduce carbon emissions and develop a sustainable business."
"It is also a time when cost is key and the additional financial burden of buying renewable energy might be difficult for some companies to justify on a commercial basis."
"We are leading the way to make this move because we believe that by making this investment on behalf of UK companies, we can help to bring businesses one step closer to a sustainable energy future."
The new scheme forms part of DONG Energy's integrated approach to sustainability. It compliments a range of products designed to support businesses in achieving carbon and cost reduction, through a combination of energy reduction activities, flexibility and demand management solutions and commodity cost management.