Renewable Energy Certificates, It’s London Calling

Telecommunications and electronic networks supplier British Telecommunications Group (BT) signed a contract for renewable energy certificates (REC) that will be used to power corporate operations across the United Kingdom.

Two, three-year contracts were made with npower and British Gas, and the total worth of both contracts is several hundred million pounds. The contracts will provide BT’s 6,500 telephone exchanges, satellite earth stations, offices and depots with environmentally friendly power some of which will come from sustainable resources such as wind generation, solar, wave and hydroelectric schemes. British Gas hasn’t released any details of their contract with BT. However, npower Business, the industrial and commercial retail arm of RWE npower, said it has agreed to supply almost 1 Terrawatt Hour (TWh) of green electricity to the UK telecommunications giant. That is enough power to supply 100,000 homes with electricity every year for three years, according to npower. “Customers who choose to ‘go green’ reap a host of benefits,” said Gordon Parsons, who is the head of sales and marketing at npower Business. “They can potentially offset the financial impact of the Climate Change Levy, which requires businesses to source a percentage of energy from renewable sources or pay a penalty. On top of that, if they marry their green energy policy to an energy efficiency strategy, this can also reap significant savings.” The supply agreement with npower will generate 0.4 TWh from green electricity sources including wind generation and hydroelectric schemes. The remainder will be supplied from combined heat and power generation, which has a lesser environmental impact than conventional fossil fuel energy generation methods. Power from the generation sources will help to run BT’s 6,500 telephone exchanges, their satellite earth stations, national offices, and remote depots. Paul Reynolds, who is the chief executive of BT Wholesale, said “Energy efficiency is a key element of our purchasing strategy and sustainability is at the heart of our business. We are aiming both to increase energy efficiency and reduce emissions to the atmosphere and we believe we will achieve both aims with these new contracts. The contracts represent a good deal for BT and for the environment in which we all live and work.” BT plans to continue to invest in energy efficiency particularly within its new 21st century network, power systems and equipment. The company is also looking at renewable technology within its buildings and network.

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