A practical guide to renewable energy procurement for UK businesses

Updated on 1 November 2025 by:

Vander Caceres, Senior Market and Competitor Insight Manager

 

UK businesses are on the front line in the fight against climate change, and renewable energy procurement is becoming a critical part of their sustainability strategy. With their size, diversity, and energy consumption, businesses are major contributors to carbon emissions.

According to data from Elexon, the organisation that oversees the processes that settle payments between generators, suppliers and traders, businesses were supplied 164TWh of electricity in Q2 2025, whilst residential customers consumed 100TWh over the same period1.

As pressure mounts from regulators, customers, and employees, companies are increasingly turning to business energy solutions that support their net zero strategy. This guide explores how organisations can navigate the complex landscape of renewable energy procurement and make informed decisions that reduce emissions,improve energy efficiency and build long-term resilience.

Whether you're just starting out or looking to accelerate your progress, we break down complex energy topics into clear, practical steps to help your business take meaningful action and stay ahead in a changing energy landscape.

Volume of electricity supplied to business and residential customers (TWh and %)1

Understanding Emissions: Scope 1, 2, and 3

Businesses are under growing pressure to decarbonise - from sustainability-conscious customers and employees with strong environmental awareness to increasingly strict regulations.

For many businesses, understanding and measuring emissions produced from burning fossil fuels is not only a regulatory requirement but also a step towards understanding the renewable energy procurement landscape, and achieving net zero strategy goals.

Businesses understand the path to net zero, progress is often hindered by cost pressures, capability gaps, and a shortage of skilled talent.

Let’s explore the different scopes of emissions and how businesses can take action to reduce them.

Scope 1 - Direct carbon dioxide emissions

These are direct emissions produced from sources a business owns or controls. Examples include fuel used in offices, company-owned vehicles and industrial processes2.

Scope 2 - Indirect emissions from fossil fuel combustion

Scope 2 are emissions that a business causes indirectly and come from the energy it purchases and consumes such as electricity, steam or heating.

Scope 3 - Other indirect emissions

Scope 3 encompasses all other emissions related to a business’s operations, including those from its supply chain, employee commuting, product use, and waste disposal.

Practical steps to reduce emissions

These are some practical, proven ways to drive down emissions and improve your business sustainability credentials too.

 Start with energy efficiency 

The cheapest, cleanest energy is the energy you don't use. Start by tackling energy waste through energy efficiency measures. Then look to invest into LED installations and energy-efficient building upgrades. These are likely to reduced electricity and gas consumption.

Electrify where you can  

Switching from fossil-fuelled boilers to electric alternatives slashes Scope 1 emissions, especially when powered by renewable energy sources3.

Track your energy usage

Understanding your energy usage is key to making smarter decisions, that’s why we built Energy360® DataView. This free-to-use energy monitoring platform is available to existing business energy customers and provides greater visibility and control over your consumption. It’s a practical tool to complement your renewable energy procurement strategy and drive progress toward your net zero goals.

Switch to renewable electricity

Procuring a new renewable energy contract can be a daunting process for many businesses.

A practical way to compare suppliers’ renewable energy credentials is by examining their fuel mix, which shows the proportion of energy sourced from renewables versus fossil fuels.

According to our analysis of the latest fuel mix data - published in October 2025 and covering the period from April 2024 to March 2025 - only seven of the 20 largest energy suppliers can be classified as delivering zero carbon electricity to their customers4.

Energy suppliers fuel mix by source 2025 (Apr’24 -  Mar’25)4

A zero carbon electricity contract allows businesses to report zero emissions under Scope 2, supporting their broader net zero strategy.

The hierarchy of renewable electricity procurement options

Navigating renewable energy procurement may seem complex, but the steps are becoming clearer.

The opportunity lies in starting with practical, measurable actions - cutting energy waste, electrifying where possible, and choosing genuinely renewable energy contracts.

With increasing pressure from regulators and stakeholders, making informed decisions now isn't just good for the planet - it's a strategic investment in future resilience and competitiveness.

The energy procurement landscape is evolving quickly, and those who move early will be better positioned to manage risk, control costs, and lead in a low-carbon economy.

We're here to help you take the next step.

Whether you're exploring renewable energy contracts or looking to reduce emissions, our team can guide you through the options and help you make informed, confident decisions.

We offer tailored green business energy solutions, and our energy supply is zero carbon as standard5. For a limited time, you can enjoy 100% Natural Renewable Electricity6 with no additional charges, get a quote today and start your transition to cleaner, smarter energy.

In this article

• Understanding Emissions: Scope 1, 2, and 3
• Practical steps to reduce emissions
• We're here to help you take the next step.

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