Summary
Chapter 1. Introduction
Chapter 2. Introducing Green Power
What is Green Power?
Introduction to Renewable Energy Certificates
Introduction to the Voluntary Market
Certification and Verification
Tracking Systems
Chapter 3. The Benefits and Costs of Green Power
The Benefits
The Costs
Public Relations Considerations
Chapter 4. Green Power Product Options
Purchase Options
Self-Generation Options
Green Power Supply Options Summary
Chapter 5. Using Organizational Goals to Guide Green Power Purchases
Setting Goals
Identifying Key Decision-Makers
Gathering Energy and Facility Data
Choosing Green Power Options
Chapter 6. Contracting for Green Power
Developing Criteria for Screening Green Power Suppliers and
Products
Collecting Product Information
Creating a Procurement Plan
Chapter 7. Planning a Self-Generation Renewable Project
Screening the Options
Obtaining Resources and Assistance
Creating a Project Plan
Installing and Operating a Renewable Generation Project
Chapter 8. Capturing the Benefits of the Purchase
The Environmental Benefits
Promoting the Organization’s Purchase
Chapter 9. Conclusion
Chapter 10. Resources for Additional Information
Glossary
Appendix A. Green Power Considerations for Federal Agencies
Appendix B. Commercial Solar Financing Options
Appendix C. Purchasing renewable energy as a residential customer
DOCUMENT MAP
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3-3
Green power can offer organizations a variety of environmental, economic and stakeholder relations benefits. Green
power purchases can also support the development of domestic renewable energy, which creates jobs, promotes
resource diversity and provides grid resilience. This chapter is intended to help buyers understand the benefits and
costs associated with purchasing green power. The focus here is on the universal benefits and costs that are synon-
ymous with all forms of green power. Chapter 4 compares the specific benefits and costs associated with different
green power supply options.
The Benefits
Green power provides benefits both directly and indirectly to the buyer. The benefits listed here are grouped into four
categories:
Environmental benefits
Economic benefits to the purchasing organization
Stakeholder relations
Development of domestic energy resources
Environmental Benefits
Reduce organizational carbon footprint. Organizations that purchase low- or zero-emissions green power may
claim to be reducing indirect (or Scope 2) emissions associated with purchased electricity—emissions that are owned
and are the direct responsibility of the utility or other owner of the generating facility, but that are the indirect respon-
sibility of the consumers of the electricity produced. Although consumers cannot directly control the generating
facility that produces their electricity, they can influence the generator indirectly through their demand side choices.
This is especially useful if the organization is accounting for its emissions through an inventory using the Greenhouse
Gas (GHG) Protocol Corporate Reporting Standard.
Reduce air pollution. Conventional electricity generation from fossil fuels is one of the single largest industrial
sources of air pollution (for sulfur dioxide, nitrogen oxides, mercury and certain types of particulate matter) in the
United States.
1,2
The emissions from conventional electricity generation contribute to a number of serious envi-
ronmental problems. Green power generates fewer emissions than conventional power, helping to protect human
health and the environment. According to a study by the Lawrence Berkeley National Laboratory and the National
Renewable Energy Laboratory, emission reductions from each megawatt-hour of new renewable generation pro-
duced health and environmental benefits ranging from $26 to $101 per megawatt-hour (MWh).
3
Reduce water environmental impacts. Most green power technologies do not consume water and have a negligible
impact on local aquatic ecosystems.
4
Conventional power generation often requires water for fuel extraction, steam
production and power plant cooling. The release of spent cooling water increases the temperature of local water
resources, which can alter aquatic ecosystems. In contrast, most green power systems do not consume water or
release it into the environment. A joint study by two national laboratories found that adding new renewable electricity
1
U.S. Environmental Protection Agency. (n.d.). Air pollutants emissions trends data: Average annual emissions. Retrieved from https://www.epa.gov/air-emissions-
inventories/air-pollutant-emissions-trends-data
2
U.S. Environmental Protection Agency. (n.d.). Mercury and Air Toxics Standards: Cleaner Power Plants. Retrieved from https://www.epa.gov/mats/cleaner-power-plants
3
Wiser, R., Barbose, G., Heeter, J., Mai, T., Bird, L., Bolinger, M., Carpenter, A., Heath, G., Keyser, D., Macknick, J., Mills, A., and Millstein, D. (2016). A retrospective analysis
of the benefits and impacts of U.S. renewable portfolio standards. Lawrence Berkeley National Laboratory and National Renewable Energy Laboratory. (Publication No.
NREL/TP-6A20-65005). Retrieved from http://www.nrel.gov/docs/fy16osti/65005.pdf
4
International Energy Agency. (2012). World energy outlook 2012 (pp. 501-511). OECD/IEA. Retrieved from http://www.iea.org/publications/freepublications/publication/
WEO2012_free.pdf
3-4
to the grid resulted in water savings equivalent to 8,420 gallons of withdrawal and 270 gallons of consumption for
each megawatt-hour produced.
5
Emissions and water benefits of renewable electricity generation for state renewable portfolio standard (RPS) pro-
grams through 2013 were examined in a recent Lawrence Berkeley National Laboratory study, with results shown in
Figure 3-1.
Figure 3-1. Environmental Benefits and Impacts of New Renewable Electricity as Evaluated
to Meet 2013 RPS Compliance
6
Note: This study evaluated a subset of the potential benefits and impacts of state RPS policies. We distinguish impacts from benefits because we do not estimate or claim
any net social benefit from the impacts assessed here. We do not assess all potential benefits and impacts, for example land use and wildlife impacts, or job losses in the
fossil industry. We also do not address the costs of state RPS programs, as that was the subject of an earlier study (Heeter et al. 2014).
Economic Benefits to Purchasing Organization
Reduced economic costs of green power projects. Technological innovations have led to dramatic declines in the
cost of wind and solar technologies since 2000. These cost decreases have stimulated demand, contributing to higher
sales volumes and larger economies of scale, which has further reduced production costs. This has allowed green
5
Wiser et al., op. cit. Withdrawals are defined as the amount of water removed or diverted from a water source for use, while consumption refers to the amount of water
that is evaporated, transpired, incorporated into products or crops, or otherwise removed from the immediate water environment.
6
Wiser et al., op. Cit.
NATURAL
GAS
$0.5 - $1.14
natural gas prices
lowered by
/MMBtu
WHOLESALE
ELECTRICITY
PRICES
$0 - $1.2
billion
reduced electricity
consumer bills by
(0¢- 1.2¢/
kWh-RE)
JOBS
200,000
supported nearly
gross domestic
RE jobs
$20 billion
drove over
in GDP
(1.3¢ - 3.7¢/kWh-RE)
$1.3 - $3.7
billion
equivalent to consumer
savings ranging from
H
2
O
consumption reduced by
gallons
27 billion
WATER
USE
withdrawal reduced by
gallons
830 billion
PM
2.5
4,800
reduced by
metric tons
PARTICULATE
MATTER 2.5
NO
x
43,900
reduced by
metric tons
NITROGEN
OXIDES
SO
2
77,400
reduced by
metric tons
SULFUR
DIOXIDE
CO
2
GREENHOUSE
GAS EMISSIONS
59 million
$2.2 billion
reduced by
metric tons
equivalent to
benefit (2.2¢/kWh-RE)
Estimates span $0.7 billion to
$6.3 billion (0.7 to 6.4¢/kWh-RE)
$5.2 billion
equivalent to
benefit (5.3¢/kWh-RE)
Estimates span $2.6 billion to $9.9 billion (2.6 to 10.1¢/kWh-RE
BENEFITSIMPACTS
3-5
power to become more affordable to more organizations. To illustrate the recent cost reductions, Figure 3-2 shows
that the installed cost of solar has decreased from $8- $12/watt in 2000 to $2-$4/watt in 2016. Similar dramatic cost
reductions have been seen for wind technologies. In some situations, wind and solar are now cost-competitive with
conventional energy.
Manage electricity prices. Organizations can procure green power through long-term contracts to safeguard against
expected electricity prices increases by locking in fixed costs for their electricity and the associated renewable attri-
butes for several years at a time.
Mitigate fuel supply disruptions. Disruptions in fuel supply can hinder business processes and profitability. Green
power resources can reduce the impact of fuel supply disruptions to power plants caused by transportation diffi-
culties, accidents or natural disasters by lowering demand for fuels that are delivered by rail or pipeline. In addition,
on-site self-generation or third-party owned generation, coupled with storage, can improve electricity supply reliabili-
ty and resilience in response to local power outages.
Figure 3-2. Cost of Installed Solar
7
Note: Solid lines represent median prices, while shaded areas show 20
th
-to-80
th
percentile range. See Table 4-1 for annual samples sizes. Summary statistics shown only if at
least 20 observations are available for a given year and customer segment.
7
Barbose, G., Darghouth, N., Millstein, D., LaCommare, K., DiSanti, N., and Widiss, R. (2017). Tracking the Sun 10: The installed price of residential and non-residential
photovoltaic systems in the United States (p. 15). Lawrence Berkeley National Laboratory and U.S. Department of Energy SunShot. Retrieved from https://emp.lbl.gov/
sites/default/files/tracking_the_sun_10_report.pdf.
0
2
4
6
8
10
12
14
2000
2002
2004
2006
2008
2010
2012
2014
2016
0
2
4
6
8
10
12
14
2002
2004
2006
2008
2010
2012
2014
2016
0
2
4
6
8
10
12
14
2006
2008
2010
2012
2014
2016
Median Installed Price
2016$/W
DC
Residential Non-Res. ≤500 kW
DC
Non-Res. >500 kW
DC
3-6
Case Study: Stabilizing Electricity Price with a Physical PPA
In 2014, George Washington University (GW), American University (AU) and George Washington University Hospital
(GWUH) entered into a 20-year power purchase agreement with Duke Energy Renewables for the energy from a
52-megawatt solar photovoltaic project in North Carolina. The solar energy will power more than half of GW’s and AU’s
electricity needs and more than a third of GWUH’s need. Equally important, the agreement provides fixed pricing for the
solar energy at a lower total price than current power solutions and is expected to yield greater economic savings for the
partners as traditional power prices are anticipated to increase at a higher rate over the same period. The project will help
GW, AU and GWUH meet their climate action plan commitments without incurring additional costs.
Stakeholder Relations
Meet organizational environmental objectives. Reducing an organization’s environmental impact is one of the
main motivations for buying green power. This may be driven internally by employees and shareholder initiatives,
and externally by a desire to improve brand image and perception of the organization among its stakeholders and
customers. If an organization is interested in creating a third-party certified environmental management system
(e.g., ISO-14001 certification for environmental performance) or is preparing for LEED (Leadership in Energy and
Environmental Design) certification for its building or facilities, purchasing green power could be important for attain-
ing the certification standards.
Increase brand credibility through recognized initiatives. Participating in collaborative programs improves the
environmental credibility of the organization and may help in attracting new investment. Below are a few examples:
The U.S. Environmental Protection Agency’s (EPA’s) Green Power Partnership is a voluntary program that
encourages organizations to use green power to reduce the environmental impacts of electricity use. This
partnership tracks an organization’s performance in use of green power. In return for technical assistance and
recognition, Partners commit to use green power for all, or a portion, of their annual electricity consumption.
The Sustainable Purchasing Leadership Council is a nonprofit organization whose mission is to support and
recognize purchasing leadership that accelerates the transition to a prosperous and sustainable future.
RE100 is a collaborative, global initiative of influential businesses committed to attaining 100 percent renewable
electricity use, with a focus on dramatically increasing corporate demand for renewable energy.
CDP (formerly the Carbon Disclosure Project) works to improve corporate awareness through measurement and
disclosure as a way to effectively manage carbon and climate change risk. CDP encourages companies and cities
across the world to measure and disclose their environmental information.
The Global Reporting Initiative (GRI) is an international, independent organization that helps businesses, gov-
ernments and other organizations understand and communicate the impact of business on critical sustainability
issues using the GRI Guidelines, which enable organizations to measure and understand their most critical
impacts on the environment, society and the economy.
The Center for Resource Solutions’ Green-e program for renewable energy certification can help organizations
purchase green power with confidence, as the program sets standards for voluntary green power and certifies
retail green power products.
Demonstrate civic leadership. Being among the first in a community to purchase green power is a demonstration
of civic leadership. It makes a statement that an organization is willing to act on its stated environmental and social
goals. Committing to green power can also demonstrate a company’s willingness to innovate and reduce long-term
business risk. See Chapter 10, Resources for Additional Information, for details.
Generate positive publicity. Buying green power affords an opportunity for and builds on existing public recognition
and public relations activities. Companies that are in the public eye benefit from being responsive to the concerns of
environmentally conscious customers, shareholders, regulators and other constituents. Programs promoting green
3-7
power, such as EPA’s Green Power Partnership or the Center for Resource Solutions’ Green-e Program provide assis-
tance in reaching broad audiences to convey the benefits of green power purchases.
Improve employee recruitment and retention. Leadership on renewable energy may improve employee morale,
productivity, retention and talent acquisition. A Tandberg-Ipsos MORI survey report of employees in 15 countries
showed 80 percent of survey respondents (81 percent in the United States) preferred to work for organizations with
an environmentally friendly reputation. A McKinsey survey found that company executives in the sustainability
leaders’ group (companies that are more adept at capturing value through sustainability) more often report that
sustainability is important for attracting and retaining employees than respondents at other companies. A University
of California - Los Angeles study found that for companies that voluntarily adopt green practices and standards,
employees are 16 percent more productive than average.
Improve student recruitment and enrollment. In an annual survey of college applicants and their parents, the
Princeton Review found that “a majority (61 percent) of respondents said having information about colleges’ commit-
ment to environmental issues would contribute ’strongly,’ ’very much,’ or ’somewhat’ to their application/attendance
decisions.” Underlining the point, the Princeton Review also ranks the Top 50 Green Colleges and reports sustainabili-
ty information for over 300 more schools in the Guide to Green Colleges.
Differentiate products or services. By purchasing green power, a company may be able to differentiate its products
or services by offering them as “made with certified renewable energy.” For example, businesses and consumer
goods recognized by the Center for Resource Solutions’ Green-e program can display the Green-e logo on their
company websites and product packaging to indicate use of 100 percent certified green power in the manufacturing
of the product.
8
Some companies also find that producing their products with green power gives them an advantage
in marketing to customers who are trying to “green” their supply chains. For example, Steelcase, a furniture manufac-
turer, uses a scorecard to grade suppliers’ performance, including a sustainability metric. One of the scorecard’s listed
best practices is purchasing renewable resources. Steelcase has also helped suppliers negotiate volume pricing for
purchasing renewable energy certificates (RECs).
8
Green-e certifies both renewable energy products (sold by utilities and other energy suppliers and marketers) and companies and products (consumer goods) that use
or are made with certified renewable energy.
Corporate Motives to Pursue Renewables
A 2016 survey of corporate participants on motives to pursue renewables indicates that most companies view their
renewable energy purchases as part of a larger commitment to meet corporate sustainability goals. The survey results for
corporate motives are shown below:
Keep up with competitors
Reduced supply risk
Enhanced corporate reputation
Electricity price hedging
Attractive ROI
Sustainability goals
85%
76%
59%
54%
13%
9%
Source: O’Shaughnessy, E., Heeter, J., Liu, C., and Nobler, E. 2016. Status and trends in the U.S. voluntary green power
market (2015 data). National Renewable Energy Laboratory. Retrieved from https://www.nrel.gov/docs/fy17osti/67147.pdf,
p. 36, citing PWC study.
3-8
Development of Domestic Energy Resources
Stimulate domestic economy. Manufacturing, installing and operating renewable technologies in the United States
requires a trained energy workforce. By purchasing green power, organizations increase aggregate demand, leading
to creation of high-quality, high-paying jobs that can help grow the local economy (see Figure 3-3). Renewable
energy facilities can also increase the local tax base and provide income to farmers and rural communities, who
can benefit through landowner lease payments. Green power generation is an important growth sector that can
simultaneously boost the nation’s economy and create jobs, while also meeting the nation’s energy requirements with
renewable domestic resources.
Figure 3-3. U.S. Jobs by Electric Power Generation Technology, Q2 2015 to Q1 2016
9
*Note: The methodology was revised in 2016 to capture subcontractor employment in Nuclear and Traditional Hydro, employment totals are not reflective of growth year
over year. Job figures in chart are only related to electric power generation and associated technologies.
9
U.S. Department of Energy. (2017). U.S. Energy and Employment Report. Retrieved from https://www.energy.gov/downloads/2017-us-energy-and-employment-report.
Case Study: Demonstrating Community Leadership
In 2013, Maplewood, Missouri, undertook a GHG inventory of the city as a first step in developing a GHG emissions
reduction action plan. Two years later, the city’s sustainability commission and city government launched the Maplewood
Green Power Community Challenge to motivate local government, businesses, and citizens to install solar or purchase
renewable energy certificates, with the goal of qualifying as an EPA Green Power Community. When the challenge began,
the goal was to match 3 percent of the city’s energy use with green energy. The residents and businesses of Maplewood
showed such overwhelming support of the Green Power Challenge that they doubled the original goal and are now
matching 6 percent of the community-wide total electricity use with green power. Led by the city government and the
Maplewood-Richmond Heights School District, there are approximately 200 homes supporting green energy either by
installing solar or participating in the local utility’s Pure Power program. About 20 Maplewood businesses are purchasing
RECs, installing solar, or a combination of the two. In 2016, EPA named Maplewood the Green Power Community of the
Year.
0
50
100
150
200
250
300
350
400
OtherAdvanced
Gas
Fossil
Fuels
Nuclear*Traditional
Hydro*
Low
Impact
Hydro
Bioenergy
/CHP
GeothermalWindSolar
U.S. Jobs (in thousands)
*Note: Hydro and Nuclear increases due to resolving suppression errors in 2015.
2015
2016
3-9
The Costs
There are several factors that can affect green power costs; most of them depend on the choices an organization
makes. These factors include the following:
Green power product option (discussed more in Chapter 4)
Green power supplier (e.g., competitive bid or not)
Renewable resource and technology type (e.g., wind, solar, hydro, biomass)
Quantity of green power purchased
Duration and terms of contract
Available incentives for green power
Location of the generator or consumer
Figure 3-4 illustrates the levelized costs of renewable and fossil fuel technologies and shows that several clean energy
technologies are now cost-competitive with conventional energy sources.
10
Despite this progress, the product type an
organization chooses can make a big difference in cost and in how that cost is incurred. For example, even if the extra
cost is low, purchasing unbundled RECs still comes at a cost premium on top of the standard electricity cost to the
consumer. The same is usually true for purchases of green power from a utility.
In contrast, the competitive costs for some renewable energy technologies shown in Figure 3-4 have made self-gen-
eration and long-term contracts or direct purchasing from generators more accessible to an increasing number of
organizations.
For example, while self-generation can require a major capital outlay that varies significantly depending on the size
of the installation, that cost can be recovered over time through stable and, in some cases, lower ongoing operating
costs.
Long-term contracting for electricity supply avoids the upfront capital cost and may also provide competitive and
predictable electricity costs depending on the contract terms. In some states, solar companies will capitalize, own and
install a solar project at an organization’s site with a commitment from the host organization to purchase the output
over a period of years. Alternatively, creditworthy large energy consumers may be good candidates for long-term
contracts for off-site green power supply from the utility grid. The risk with long-term contracts is that future electric-
ity prices may turn out to be lower than expected, and the organization is locked in to the higher price specified in the
contract. Some contracts can specify which party accepts the market risk for higher electricity prices.
These procurement or product options may allow for cost savings over the life of the project or contract. Chapter 6,
Contracting for Green Power, suggests methods for minimizing green power purchase costs as part of a procurement
plan.
10
Levelized cost of electricity (LCOE) is used to compare the relative cost of energy produced by dierent energy-generating sources, regardless of the project’s scale or
operating time frame. LCOE is a calculation accounting for all of a system’s expected lifetime costs (including construction, financing, fuel, maintenance, taxes, insurance
and incentives), which are then divided by the system’s lifetime expected power output (in kilowatt-hours). All cost and benefit estimates are adjusted for inflation and
discounted to account for the time-value of money.
3-10
Figure 3-4. Levelized Cost of New Power Generation Technologies in 2016
11
Note: Here and throughout this presentation, unless otherwise indicated, analysis assumes 60% debt at 8% interest rate and 40% equity at 12% cost for conventional and Alternative Energy generation technologies. Reflects global, illustrative
costs of capital, which may be significantly higher than OECD country costs of capital. See “Unsubsidized Levelized Cost of Energy—Cost of Capital Comparison” page for additional details on cost of capital. Analysis does not reflect potential
impact of recent draft rule to regulate carbon emissions under Section 111(d). See Appendix for fuel costs for each technology.
+
Denotes distributed generation technology. REC Prices
11
Lazard. (2017). Lazard’s Levelized Cost of Energy Analysis—Version 10.0. Retrieved from https://www.lazard.com/media/450337/lazard-levelized-cost-of-energy-version-110.pdf.
$0 $50 $100 $150 $200 $250 $300 $350
Gas Combined Cycle
Coal
(11)
Nuclear
(10)
IGCC
(9)
Gas Peaking
Natural Gas Reciprocating Engine
(8)+
Diesel Reciprocating Engine
(7)+
Wind
Biomass Direct
Geothermal
Microturbine
+
Fuel Cell
+
Solar Thermal Tower with Storage
(3)
Solar PV—Utility Scale Thin Film
(2)
Solar PV—Utility Scale Crystalline
(2)
Solar PV—Community
Solar PV—Rooftop C&I
+
Solar PV—Rooftop Residential
+
Levelized Cost ($/MWh)
$187
$85
$76
$46
$43
$98
$106
$59
$77
$55
$30
$197
$68
$156
$96
$112
$60
$42
$319
$194
$150
$53
$48
$181
$167
$89
$117
$114
$60
$281
$106
$210
$231
$183
$143
$78
$82
(4)
$82
(4)
$237
(5)
$113
(6)
Alternative Energy
(1)
Conventional
3-113-11
REC Prices
The premiums associated with green power were originally conceptualized as representing the incremental cost of
the renewable resource above the utility’s “avoided cost,” meaning the cost of building the next power plant the utility
will need, discounted to today’s present value. This avoided cost can be quite low, hence, many green power products
available from utilities today are offered at a price premium over the retail electricity price.
However, trading of RECs separate from electricity has led to pricing that is based more simply on the supply of and
demand for RECs. In a competitive voluntary national market, RECs have become commodities, and REC supply
currently exceeds demand nationally. This has driven wholesale REC prices down in recent years. Figure 3-5 below
tracks the wholesale prices of wind RECs traded in voluntary markets from 2009 to 2015, as reported by REC brokers.
These wholesale prices typically reflect large quantity transactions of national wind RECs. The REC price in a retail
transaction may be 5-10 times higher, depending on the volume purchased, the resource type and the location of the
generator.
Regional prices may also vary, especially where there is competing demand for RECs to satisfy utility mandates to
acquire and supply minimum percentages of renewable energy or where specific renewable resources may not exist
(i.e., low-impact hydropower).
If an organization owns the green power generating facility and keeps the RECs, there is no additional cost for RECs.
12
In certain direct or retail purchase options, the acquisition of RECs may be built into the cost of long-term contracts.
Ownership of RECs in this case is the result of contract negotiation. Because the price is not reported and may not
even be separately specified, there is no visibility into REC prices for such transactions.
Figure 3-5. Trends in Voluntary National Wholesale Wind REC Prices
13
12
I n many cases, on-site generation is owned by a third-party, who (as project owner) may choose to sell the RECs to someone else. Organizations hosting on-site projects
but contracting for the power should make sure the contract is explicit about which party owns the RECs if the hosting organization wishes to claim it is using green
power.
13
O’Shaughnessy, E., Heeter, J., Cook, J., and Volpi, C. (2017). Status and Trends in the U.S. Voluntary Green Power Market (2016 data) (p.21). National Renewable Energy
Laboratory. https://www.nrel.gov/docs/fy18osti/70174.pdf.
2010 2012
2014 2016
REC Price ($/MWh)
1.5
1.0
0.5
0.0
3-11
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Contracting Challenges
Purchasing green power can be challenging, depending on the supply options available and the local regulatory
environment. If an organization chooses to pursue long-term contracting, for example, it will incur transaction costs
stemming from soliciting and vetting bidders, negotiating contracts and obtaining legal advisory services. These
types of procurements are customized agreements.
If an organization chooses to pursue generation that it owns and operates, it will need to ensure site control (if off-
site), undertake engineering feasibility studies, determine equipment size and type, obtain permits, design and specify
the installation, secure a vendor, and contract for installation as well as operations and maintenance. If the project
is on-site, but owned by someone else, the organization hosting the project may face many of the same challenges
pertaining to long-term contracts and will need to address concerns about how the installation will affect the building
or the facility’s operations.
Although organizations purchasing green power for the first time may need to invest extra effort to learn about
the market and available options, these costs often decrease significantly over time as the buyer gains experience
with the process. Following the information and strategies provided in this guide, particularly Chapter 6, should help
reduce the contracting challenges faced by new purchasers of green power. In addition, sample contract templates
are publicly available to help buyers avoid difficulties in signing a green power contract (see Chapter 10, Resources for
Additional Information).
Public Relations Considerations
Organizations can ensure the credibility of their green power purchase by buying green power as part of a broader
environmental management strategy or program, as well as by working with third-party organizations for indepen-
dent auditing, certification, endorsement and minimum purchasing benchmarks.
Organizations purchasing green power can experience public relations and internal challenges, which can fall into the
following categories:
Conceptual. Some people may struggle to understand that the REC market instrument represents the
intangible environmental attributes of generation. RECs are an inherently separate commodity and also trade
separately from physical electricity. Nevertheless, RECs are the legal accounting instrument in the U.S. market
for voluntary green power use and purchasing, and they are supported in GHG accounting guidance and state
RPS policies. Their validity to representing the conveyance of environmental attributes of green power is also
founded in case law. Educating stakeholders about how purchases of specified electricity work in electricity
markets can help, and sourcing green power from projects within the organization’s local electricity grid may
help minimize confusion.
Purchase credibility. Questions about whether an organization really receives what it claims it bought can be
easily addressed through greater transparency. Example efforts to improve credibility and transparency include
purchasing renewable energy that is certified and verified by third-party certification programs and use of
facilities whose RECs are tracked in independent electronic tracking systems.
3-13
Market impact. Some stakeholders may struggle to understand or accept the benefits of a national renewable
energy market in which new development and generation of renewable energy will depend on sufficient
demand. They may be concerned that purchasing green power from existing renewable facilities does not have
a big enough impact on the overall supply of renewable energy due to current national levels of supply and
demand of RECs. If these concerns are important to an organization, it may want to emphasize purchases from
new facilities or leverage its resources to help a new renewable facility get built. This may offer added repu-
tational benefits beyond the core renewable energy usage and emissions rate offered by all REC-based green
power supply options.
14
14
Center for Resource Solutions. (2016). How renewable energy certificates make a dierence: The impacts and benefits of buying renewable energy. Retrieved from
https://resource-solutions.org/wp-content/uploads/2016/03/How-RECs-Make-a-Dierence.pdf
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