Background
The Maine Chapter Sierra Club, the Maine Energy Investment Corporation and
other Maine Partners for Cool Communities have partnered with Maine
Interfaith Power and Light to offer information for communities about
purchasing
Green Power and Green Tags, or Renewable Energy Certificates (RECs).
The purpose of green tags, also known as “RECs” is to create a market for
the “green characteristics” of renewable energy. With the ability to
purchase green tags, consumers can choose to support clean energy
production, even if their utility does not generate any energy from green
sources. Alternatively, if a consumer’s utility does offer energy from
green sources, consumers can choose to buy this electricity directly. In
Maine, green power typically comes from low-impact hydro electric dams. Both
of these options allow consumers to enjoy the environmental benefits of
clean, green energy.
How do Green Tags Work?
Producing energy from clean, renewable sources such as wind, solar,
geothermal or biomass is more expensive for the power producer than
producing energy from traditional, fossil fuel base sources. Purchasing
green tags is essentially like paying the difference between the cost of
conventional energy, and the higher cost of renewable energy.
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The electricity that is produced from both renewable sources and fossil fuel
power plants is typically sent into the electricity grid, where the
electrons get mixed together and sent to end users. Because there is no way
to differentiate the clean from the dirty energy, all of this energy is sold
to customers at the same price (market price), even though it may have been
more expensive to produce the clean energy in the mix.
However, the suppliers still need to recover the extra cost of producing
renewable energy. Therefore, in
addition to selling the electricity, the electricity producers also sell
green tags. These green tags represent the extra cost of producing clean
energy and can be sold to anyone, regardless of whether the individual or
organization is receiving the actual electrons from the energy.

For
example, a wind farm could be producing clean energy in New York, but a
consumer in Maine might want to buy clean energy, even though the
individual’s utility does not produce any energy from renewable sources. The
individual can instead choose to purchasing
the
green attributes of the wind energy in New York, in the form of green tags
or RECs. While the actual electricity from the wind farm may or may not
reach the purchaser of the green tags, the individual is paying for green
energy to be put directly into the power grid and therefore increasing the
overall amount of renewable energy that is generated. In this way, consumers
can purchase green energy without having to purchase their electricity
directly from a clean energy producer.
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The Benefits of Green Tags and Green Power
Encourage Clean Energy Production:
Organizations and individuals that purchase green power increase consumer
demand for clean energy. The greater the demand, the more renewable energy
utilities will have to produce in order to meet that demand. If your
utility is not currently producing clean energy, increasing consumer demand
will eventually force your utility to offer a clean energy option.
Help Local Farmers:
The bulk of the renewable energy being added to the grid in the last several
years has been energy from wind farms. These wind farms are often built on
existing farmland, where local farmers are struggling to turn a profit.
Lease payments that are paid to the farmer by the utility that owns the wind
farm can significantly increase the farmers income. Purchasing green tags is
a way of encouraging the sustainable production of wind energy on farm land.
Prevent the Construction of Fossil Fuel Power Plants:
While purchasing green energy may not cause fossil fuel based power plants
to be decommissioned, increased demand for clean energy can cause renewable
plants to be built in place of fossil fuel plants, to satisfy the ever
increasing demand for electricity.
Reduce Air Pollution:
Offsetting fossil fuel-produced electricity is one way to directly reduce
carbon dioxide emissions, as well as emissions of other harmful pollutants
that cause acid rain and make it harder to breath. The effects of global
climate change are beginning to be felt in communities all over the world,
and will only get worse unless communities and individuals make an effort to
reduce carbon dioxide emissions.
How Can I Purchase Green Tags?
Buying green tags or switching to a green power supply is easy and can be
done without any interruption in the delivery of electricity.
Maine Interfaith Power & Light:
Is Maine’s primary source for purchasing green tags and green power.
Consumers have the opportunity to purchasing from two different green tag
programs or from a low-impact hydro electric generator.
http://www.meipl.org/Pages/Products.html |