With the popularity of renewable energy and going green, many companies these days are looking for ways to offset their carbon emissions. From this demand multiple voluntary producers of renewable energy have emerged to sell their carbon offsets in the unregulated renewable energy market. Thankfully, various independent organizations are here to help consumers know which green power products actually come from certified renewable energy sources.Green Power Products
Customers in the market for green power have three different green power products to choose from: renewable electricity, on-site renewable generation, and renewable energy certificates (RECs).
Many states in the U.S. allow customers to purchase green power from their utility company. Renewable electricity can come directly from the electric grid, supplied through either local distribution only or multiple competitive power suppliers. Regulated local distribution requires premium green pricing if the optional service is chosen to support investment in renewable energy. In competitive markets, customers can leave their provider if a green product is not offered and purchase a green marketing product from an alternative green power resource. Not all states offer a green power option.
In lieu of buying green power, organizations can install a system for renewable power generation at their own facility. They may own the system or simply buy the electricity that it generates.
Renewable energy certificates (RECs), also called green credits, are units that can be bought and sold or traded to meet renewable energy targets or compliance policies. These credits represent renewable energy generated by a green power site through technology such as solar, wind or biomass. These RECs are sold to organizations that wish to lower their total emissions. The purchase of these credits also allows consumers to support green power from remote locations. One REC is equivalent to one megawatt-hour (MWh) of renewable electricity.
The Role of Green-e
RECs are certificates that claim renewable energy generation, but do not deliver any physical energy. Therefore, certification systems are important to ensure the proper exchange of these credits. This is where Green-e comes into the picture.
Green-e is an independent certification organization that certifies green power products to reduce greenhouse gas emissions and contribute towards a sustainable energy future. They’ve created three programs promoting renewable energy. The Green-e Climate program protects customers by setting standards for greenhouse gas emission reductions that are sold in the retail market. The Green-e Energy program verifies and certifies that renewable energy resources have met environmental and consumer protection standards. The Green-e Marketplace program is a marketing tool that allows companies to utilize the green Green-e logo to show that they have supported renewable energy products.
Companies must inform consumers what type of renewable energy they are using, whether it comes from wind farms or solar farms. They must also let customers know the price and the terms and conditions governing the supply of renewable energy. They are also tasked to abide by the professional Code of Conduct governing the business practices of organizations that participated in the said project. These companies undergo an annual verification process audit in order to ensure that they are securing the right kind of renewable energy.
