Ovo sets aside £1M to offer premium REGO price for new renewables projects

Energy supplier Ovo is to commit £1 million to offer premium power purchase agreements (PPAs) to renewable generators who are not eligible to receive subsidies through any government or industry backed schemes.
The company aims to help incentivise more small-scale, independent wind and solar farms by offering them a premium price for Renewable Energy Guarantees of Origin (REGOs), which will result in an ‘above market price’ for the electricity they generate. It expects to have its first subsidy free REGO PPA contracts signed by the end of the year.
By providing extra income for renewable generators that have not received any subsidy from government or industry backed schemes, the initiative’s aim is to drive new investment in renewable assets in the UK
Raman Bhatia, chief executive of OVO, said: “We’re committed to supporting investment in renewable energy generation across the UK, striving to bring more renewables onto the grid and taking huge steps towards reaching net zero. Going forward, we’re open to working with government and regulators to develop the retail energy market, and the Green Certificate Markets, to ensure that they work effectively to encourage investment in new renewable generation here in the UK, supporting the industry and moving the UK further away from reliance on fossil fuels.”