# Presentation: 691100

## Green Tags and                       Green Power Purchasing 

**Presented at **
**The Fifth State and Local Climate Change Partners Conference**
**November 20-20,  2002**

*Anne Marie McShea*
- Center for Resource Solutions
- Green-e Mid Atlantic
- Tel: 215.569.88078
- Email: _[amcshea@resource-solutions.org](http://www.greenmountain.com/)_

**Notes:**
Good morning it’s a pleasure to be here, especially to speak about green power purchasing and green tags which are a relatively new way to buy and support renewable energy.

## Who We Are....

- CRS is a non profit organization (501(c)3) and independent third party that certifies green power products sold in competitive retail electricity markets, regulated markets, and nationwide through Tradable Renewable Certificates (TRCs).
- The Green-e program promotes product quality, consumer confidence and best practices in green power procurement.

**Notes:**
For those of you who are not familiar with Green-e – we are a non profit organization (501(c)3) and independent third party that certifies green power products sold in competitive retail electricity markets, regulated markets, and nationwide through Tradable Renewable Certificates (TRCs).

The Green-e program promotes product quality, consumer confidence and best practices in green power procurement.

## Why Buy Green Power?

***Electricity generation is the ******largest industrial source of air pollution****** and green house gas emissions.***
***Traditional power plants produce ******37% of the carbon dioxide****** that we release into the atmosphere - the largest single contributor to global warming and  produces ******64% of the sulfur dioxide****** that produces acid rain. ***
***The Union of Concerned Scientists (USC) estimates that the US could meet the proposed targets set by the****** Kyoto Protocol by switching to 20% renewable energy by 2020****** .***

**Notes:**
The U.S. Environmental Protection Agency (EPA) reports that the average home’s electricity usage creates nearly twice as much carbon dioxide emissions as the average car.
44 pounds of nitrogen oxide ( a main cause of smog, or ozone pollution)
129 pounds of sulfur dioxide a main ingredient in acid rain
17,000 pounds of carbon dioxide (global warming gas) 

Footnote:  non renewable sources of power generation contribute to 25% of Nox and 34% of mercury

## What is “Green” Power?Eligible Renewable Energy Sources*

- Wind
- Solar
- Small or Certified Low Impact Hydro
- Landfill Gas
- Biomass
- Geothermal

*** ****	**General categories of eligible resources.  Specific eligibility may vary according to Regional Green-e Standards.

**Notes:**
The first question always asked is ‘what is green power”
The Green-e standard recognizes this list of resources as "eligible renewable resources” – A number of presenter have already discussed the individual resources.
I would only add that each of these resources plays an important role in building the green power market overall and meeting customers needs particularly in terms of pricing and availability.  
If you are considering a green power purchase for the first time you may want to first understand which sources are available in your market.  

Product Mix / Renewable Resources
Percentage of new renewables
Emission reduction benefits
Location of generators
Minimum purchase requirement
Value of offering/cost 
Company reputation
Green-e Certification

## Ways to Buy Green Power Green Power Options

- Retail Electric Choice        Competitive markets
- Utility Green Pricing Programs  Regulated markets
- Renewable Certificates                   All markets
- Distributed Generation             On site solutions

**Notes:**

Retail Electric Choice – Available in competitive markets (Mid Atlantic, TX, OH, NY, NE) Electric Choice Programs allow wholesalers/ retailers to compete to meet the kWh needs of end use consumers; be they residential, commercial or industrial. 
Utility Green Pricing – Available in regulated markets.  Utilities (TN, WI, GA, SE, Midwest, Northwest) may offer Green Pricing Programs which give consumers an option to pay a premium for a green power product.
Tradeable Renewable Certificates – Available anywhere.  TRCs or “green tags” provide option to pay just the premium for the benefits of green power delivered to the grid. 
Distributed Generation – Available anywhere although not always grid connected or metered.  On site generation sources like pv panels, small wind turbines or fuel cells provide site specific power and benefits.
Green-e Certification assures that electricity products meet consumer and environmental protection standards and verifies that consumers' dollars are supporting a specific amount and type of renewable power. Green-e also certifies no double counting

## Ways to Buy Green Power Green Power Options

*Ways to Buy Green Power **Green Power Options*

**Tradable Renewable Certificates Available in All Markets*

## Ways to Buy Green Power Green Power Options

***Retail Choice:                   A supplier procures the power from a renewable energy facility in the region and the power enters into the regional electricity pool that supplies you with power***.

*Ways to Buy Green Power **Green Power Options*

**Notes:**
In the case of retail choice and green pricing...A supplier procures the power from a renewable energy facility in the region and the power enters into the regional electricity pool that supplies you with power.

The electricity is undifferentiated....you pay a premium to the supplier for receiving the same electricity but sourced from renewable generators. 

Deregulation laws let you choose who supplies your electricity.   The local utility still delivers your power, but another company can produce it.

## Terminology:  Green Tags, T-RECs 
A certificate represents the benefits of renewable energy delivered to the grid 
Bought/sold separate from generic power as a certificate
Consumer pays only for the premium or “benefits” of renewable electricity

- A certificate represents the benefits of renewable energy delivered to the grid
- Bought/sold separate from generic power as a certificate
- Consumer pays only for the premium or “benefits” of renewable electricity

*Tradable Renewable **Certificates (TRCs)*

## Tradable Renewable Certificates (TRCs)

- Production of
- Renewable Energy

**Environmental Benefits**
**(S0****2****,  NO****X****,CO****2 ****)**

**Commodity Electricity**

*Tradable Renewable **Certificates (TRCs)*

**Notes:**
Two separate products are sold to market
The undifferentiated electricity is sold into the market at the going rate – 5cents/Kwh
The environmental benefits or ‘attributes’ are sold as a certificate – 2 cents/kwh

It’s a type of cost sharing where you the consumer only pay for the “benefits” and buy this along side your electricity from your utility.

## Tradable Renewable Certificates (TRCs)

**Marketer**

*Tradable Renewable **Certificates (TRCs)*

**Notes:**
This diagram shows a Wind Generator delivering electricity to the power pool (which is distributed to your home) and selling the certificates to a marketer

This allows you the end consumer to directly support renewable energy

## By buying the environmental attributes of renewable energy, you help pay the price difference between renewable electricity and traditional electricity
Consumers pay two suppliers instead of one for their green power, but price roughly the same

- Consumers pay two suppliers instead of one for their green power, but price roughly the same

*Tradable Renewable **Certificates (TRCs)*

## Benefits of Certificates

***We are excited to be part of a clean energy future for both ******Pennsylvania and the nation" ***Barry Hilts, Associate Vice President of Facilities, University of Pennsylvania

*Benefits of Certificates*

**Notes:**
University of Pennsylvania which is one of the largest retail wind purchasers avoided nearly 24 million pounds of CO2 by switching 5% of their load to wind power – or the output of 5 turbines / 7.6 MW

## Benefits of CertificatesCarbon Calculators

**Bonneville Environmental Foundation: **_[www.greentagsusa.org](http://www.greentagsusa.org/)__	_
**Community Energy: **_[www.newwindenergy.com](http://www.newwindenergy.com/)_

## Who is Selling TRCs?

*Who is Selling TRCs?*

**GO TO **_[WWW.GREEN-E.ORG](http://www.green-e.org/)__ FOR PRODUCT INFO_

## Green Power PurchasersState and Local GP Purchasers

- The Commonwealth  of Pennsylvania
- Media, PA
- University of Pennsylvania
- The State of New Jersey
- Maryland State Government
- Montgomery County, MD*
- Arlington County, VA*
- Catholic University

- Salt Lake City, UT
- Tennessee State
- New York State
- Santa Monica, CA
- Portland, OR
- Mackinaw City, MI*
- Montgomery County, MD*
- Chicago, IL
- Oakland, CA

- * EPA Green Power Partnership Commitment

**Notes:**
This isn’t a comprehensive list of green power purchasers but this list reflects the major purchases for end of 2001 –2002

## For more information....

- Green-e: Green Power standards, suppliers and available products  _[www.green-e.org](http://www.green-e.org/)_
- EPA Green Power Partnership: Technical assistance and national recognition _[www.epa.gov/](http://www.epa.gov/greenpower)__[greenpower](http://www.epa.gov/greenpower)_
- NREL: Latest news, reports and listing of  RFPs _[www.eren.doe.gov/greenpower](http://www.eren.doe.gov/greenpower)_