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Background |
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The term "green power" is used to
define power generated from renewable energy sources, such as wind and solar
power, geothermal, hydropower and various forms of biomass. Although renewable
energy development has traditionally been limited by cost considerations,
customer choice allows consumer preferences for cleaner energy sources to be
reflected in market transactions. In many surveys, customers have expressed a
preference and willingness to pay more, if necessary, for cleaner energy
sources.
The essence of green power marketing is to
provide market-based choices for electricity consumers to purchase power
from environmentally preferred sources. Green power marketing has the
potential to expand domestic markets for renewable energy technologies by
fostering greater availability of renewable electric service options in
retail markets.
Green pricing is an optional utility
service that allows customers an opportunity to support a greater level of
utility company investment in renewable energy technologies. Participating
customers pay a premium on their electric bill to cover the incremental cost
of the additional renewable energy.
A number of states have policies in place that encourage the development of
green power markets. These include policies that require or encourage
electricity suppliers to offer green power options to consumers, net
metering, and fuel mix and environmental disclosure policies.
The Energy Information Administration (EIA) collects information about green
pricing programs on the Form EIA-861, “Annual Electric Power Industry
Report,” which is a survey of electric industry participants. All
respondents, except independent power producers and qualifying facilities,
were asked to report their number of customers in green pricing programs by
state and customer class. In EIA's April 2009 report "Green
Pricing and Net Metering Programs 2007", the market for green pricing
customers rebounded across the nation in 2007, with the number of customers
in green pricing programs increasing by 192,795 to 835,651. Texas led this
increase with 41,384 new customers, which brought its total to 142,334 or 17
percent of the market. Oregon and Maryland followed with 19,862 and 18,906
new customers respectively. By year’s end, 537 electric industry
participants in 46 states and the District of Columbia reported having green
pricing customers. Ninety-three percent of the customers were residential.
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Power Partners℠
Projects |
APS in 2005 requested
permission from the Arizona Corporation Commission to offer an expanded
green energy program. This program will allow customers to purchase a
mixture of renewable energy, including solar biogas, biomass, wind, and
geothermal energy. APS anticipates offering
this program in 2007.
Austin Energy
developed GreenChoice, a program that offers
customers the option to choose electricity from renewable sources. The
highly successful program has 665 million kWh in subscriptions and is ranked
first in the nation (in renewable energy sales) by the National Renewable
Energy Laboratory (NREL).
CPS Energy in San Antonio,
Texas, has one of the most aggressive renewable energy programs in the
state, with more than four percent of peak demand drawn from renewable
sources. The CPS Energy Board of Trustees has committed to meeting 10
percent of peak demand with renewable energy by 2015. Additionally, CPS
designed its “GreenShade” tree-planting
program to conserve energy and save on consumer cooling costs during the hot
summer months. Eligible customers can receive free canopy trees to plant
strategically near their homes.
Duke Energy Carolinas’
franchised electric business unit
collaborated to develop a first-of-its-kind GreenPower Program in
North Carolina. The program gives customers the opportunity to support the
development of alternative sources of electricity – specifically solar,
wind, small hydroelectric, landfill gas, and biomass – by paying an
additional monthly charge on their electric bill. Duke Energy Indiana has
entered into a purchase power agreement for 100 MW of wind energy.
Exelon’s
PECO subsidiary partnered with leading wind
energy marketer Community Energy, Inc., of Wayne, Pennsylvania, to
offer PECO WIND. This product, launched in
May 2004, was the first wind energy product offered by a utility in
Pennsylvania. Customers may elect to purchase wind energy either for their
entire electric load or in increments of 100- kWh blocks up to 100 percent
of their total load. At the end of 2005,
more than 22,000 customers purchased 43 million kWh of wind-generated
electricity. Exelon also is seeking Leadership in Energy and
Environmental Design platinum certification for its company’s renovated
Chicago headquarters, which opened in December 2006. The integrated design
and project management efforts to date have resulted in
energy procurement of 100-percent Green
e-power to serve the needs of the new space; specifications for office
layouts that leverage natural light; and material selection that includes
use of recycled or regionally manufactured materials.
IPL,
AES’s utility in Indianapolis, has
implemented a metering program that allows homeowners and schools to reduce
their electric bills by generating their own power using small-scale solar,
wind, or hydroelectric energy systems.
SMUD’s Greenergy®
program offers customers the choice of supporting energy created by green
resources. SMUD matches up to 100 percent of a Greenergy®
customer’s electric needs with purchases of renewable resources for use on
the SMUD power system for only pennies a day. According to NREL, Greenergy®
qualifies as the nation’s fifth-largest green pricing program based on the
number of customers enrolled.
In TVA's Green Power
Switch® program, ninety public power distributors in the
seven-state TVA region offer consumers the option to purchase
renewable energy under TVA’s Green Power Switch® program.
Launched in 2000 with 12 distributors, the program provides energy from
solar wind, and methane gas sources. Consumers can buy Green Power Switch®
in 150-kWh blocks, and each block adds $4 to the monthly energy bill. During
the 2004-2005 school year, students at the University of Tennessee voted to
increase their facility fees to support
renewable energy, making the university the largest purchaser of Green Power
Switch® in Tennessee with 3,375 blocks. Additionally,
Tennessee became the first state in the
nation to buy green power for all of its state parks. Its purchase of 1,149
blocks per month is equivalent to the environmental benefits of planting 169
hectares (418 acres) of trees, recycling 8.8 million aluminum cans, or
removing 270 cars from Tennessee
highways.
Xcel Energy’s
wind-based green pricing program, “Windsource,”
has 50,000 customers in Colorado, New Mexico, and Minnesota –
making it the largest program of its kind in the country. Xcel plans to
offer the program to its North Dakota customers in
January 2007.
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References, Sources,
and
Other
Useful Data |
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Environmental Protection Agency, “Green
Power Partnership”
http://www.epa.gov/greenpower/
EPA’s Green Power Partnership
provides assistance and recognition to organizations that demonstrate
environmental leadership by choosing green power. This Website helps users
make better choices by providing needed information about green power and
how to purchase it.
GreenPower (Australia)
http://www.greenpower.gov.au/home.aspx
GreenPower is a national accreditation program in Australia
that sets stringent environmental and reporting standards for renewable
energy products offered by electricity suppliers to households and
businesses across Australia. Energy
suppliers' GreenPower products are independently audited. The New South
Wales Government first established the GreenPower Accreditation Program to
accredit electricity retailers’ renewable energy products in that state. The
program was developed in consultation with the energy industry, and various
non-government organisations including the Australian Consumers Association,
Greenpeace, the Australian Conservation Foundation and WWF. Since 2000, the
program has been offered nationally through joint collaboration by
participating jurisdictions, collectively known as the National GreenPower
Steering Group (NGPSG).
GreenTech News
http://www.greentechnewsmag.com/about.htm
GreenTech News (formerly Green Power magazine) is a product-and-service
information resource for managers of enterprise sustainability and green
programs who are responsible for their organizations’ sustainability-related
programs in renewable energy, energy efficiency, facility design and
operation, green materials and products, and green manufacturing and
packaging. The publication covers the latest products and services to
accomplish enterprise sustainability and green program objectives. Readers
are managers in business and government organizations, managers of renewable
energy and energy efficiency programs and operations, environmental managers
and professionals involved in green programs for manufacturing, facility
design and management, packaging, lighting, transportation and product
development.
Union of Concerned Scientists, “Clean
Energy”
http://www.ucsusa.org/clean_energy/
Innovative programs around
the country now make it possible for all environmentally conscious energy
consumers to support renewable energy directly by participating in the
"green" power market. this website provides guideline information for
choosing green power and offers links to further information.
U.S. Department of Energy, Energy
Information Administration, “Green Pricing and Net Metering Programs 2007”
(April 2009)
http://www.eia.doe.gov/cneaf/solar.renewables/page/greenprice/green_pricing.html
The Energy Information Administration (EIA) collects
information about green pricing programs on the Form EIA-861, “Annual
Electric Power Industry Report,” which is a survey of electric industry
participants. All respondents, except independent power producers and
qualifying facilities, are asked to report their number of customers in
green pricing programs by state and customer class.
U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, “The Green Power Network”
http://www.eere.energy.gov/greenpower/index.shtml
The Green Power Network (GPN)
provides news and information on green power markets and related activities.
The site provides up-to-date information on green power providers, product
offerings, consumer protection issues, and policies affecting green power
markets. It also includes a reference library of relevant papers, articles
and reports.
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