Some people may believe that by specifying their preference for Green Power they will get power exclusively from renewable sources. To understand this concept, think of your local electricity grid as a reservoir, river or lake with many sources. Power generators pour energy into the reservoir and customers draw it out. In this way, decisions to purchase Green Power change the overall mix of electricity being generated and encourage more investment in renewables. Green Regulation State and federal governments are considering a variety of policy measures to respond to the public concerns over the potentially adverse effects that electricity restructuring may have on the environment.
Most policies are incentives or regulations that encourage the use of renewables.
They differ from place to place and have so far had varying degrees of success. Performance-based regulations , which may be used to target profits to renewable usage or through placing limits on pollutant emissions. Portfolio standards imposed on all utilities serving a state, where they are required to use a percentage of renewable sources as a precondition to gaining access to customers. Requests for green proposals , where competitive bidding is used by utilities to encourage renewable development. Labeling that establishes a contents label, similar to food packages, which summarize the retail supplier's fuel, resource and emissions mix.