The Key Drivers for on-site generation are both financial and non-financial and in our experience different clients will place different levels of importance on each. For some clients, the key drivers of such a scheme in relation to their overall corporate social responsibility targets are of primary importance over and above the level of energy savings available, whereas for some other clients, more emphasis is placed on the overall level of energy saving offered.
In terms of the financial benefits, Clenergy offers its clients the opportunity to purchase electricity from the renewable development at a significant discount to that of their ‘brown’ energy supply which is linked to RPI (Typically 20-30% discount from Brown power). This normally provides a meaningful financial saving for our clients in terms of the overall cost of their electricity supply, but also offers the advantage of allowing our clients to fix a good proportion of their energy needs to RPI, which acts as a useful hedge against exposure to the volatility of wholesale pricing in the wider energy market.
Any electricity that is not used on site is exported to the grid. In return for agreeing to work with Clenergy and for providing us with exclusivity to develop the site and sell energy generated by the development direct to our clients, Clenergy asks for a long lease of around twenty five to forty years which is the expected operating life of the renewable development. In the case of biomass, the saving is linked to the cost of fuel which is typically 40-50% cheaper than oil per kW produced.