18-10-2023

REUs: What they are and why they’re important

In the transition to a more sustainable future, Renewable Energy Units (REUs) play a crucial role, especially within the transportation sector.

Image of a flow / ball of energy

A Sustainable Future for Businesses

In the transition to a more sustainable future, Renewable Energy Units (REUs) play a crucial role, especially within the transportation sector. These units, which are central to the Dutch renewable energy system for transportation, serve not only to reduce greenhouse gas emissions but also as a mechanism that can help businesses financially benefit from their sustainable efforts.

 

What are REUs?

REUs are tradable units used by energy suppliers to comply with the Renewable Energy Obligation for Transport. This mechanism has been set up to ensure a growing share of renewable energy in the transportation sector, with a target of at least 28% by 2030. One REU is equivalent to 1 GJ of delivered energy and is registered in the Register of Energy for Transport (REV), which also issues the REUs.

 

How do REUs work?

Obtaining REUs, also known as "booking," can vary depending on the type of biofuel or the destination of the biofuels. For example, for renewable electricity, 4 REUs are issued for every delivered GJ. These REUs can then be traded among suppliers to meet the annual obligation, even without supplying renewable energy themselves.

 

Types of REUs

There are several types of REUs, including REU-Conventional, REU-Annex IXB, REU-Other, and REU-Advanced, each related to different types of fuels and feedstocks. This diversification is intended to encourage the use of certain feedstocks while discouraging others and to ensure that the renewable energy produced is as sustainable as possible.

 

Importance for Businesses

For businesses, especially those in the transportation sector, REUs not only offer a way to contribute to the sector's sustainability but also a potential financial advantage. By producing and registering renewable energy, companies can obtain REUs and trade them with other businesses that need to meet their annual obligations, creating a new source of revenue.

 

GRID ENERGY and REUs

For companies collaborating with GRID ENERGY and using the GRID Energy Management System (EMS), trading REUs offers an additional layer of financial benefit. The EMS not only provides visibility into and optimizes energy flows within a company but also enables companies to maximize their renewable energy production, allowing them to generate and trade more REUs.

 

Conclusion

With the increasing emphasis on sustainability and the shift to renewable energy sources, REUs offer businesses an opportunity to reduce their ecological footprint and benefit from their sustainable efforts. In the next blog, we will delve deeper into REU trading and how businesses can maximize their benefits from it.

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