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Retail Green Power Purchase
Corporate energy consumers can participate in retail green power programs in regulated or deregulated markets. In regulated markets, companies can participate in green pricing programs, an optional utility service that allows customers to support a greater level of utility investment in renewable energy by paying a premium on their electric bill to cover any above-market costs of acquiring renewable energy resources. In competitive markets, companies can take advantage of direct access to contract with green power marketers who can offer green power products on a per kilowatt basis to the company's meter and provide billing and other services.
The programs differ widely in scope and offerings. Retail green power can be offered in blends that can consist of 2% to 100% green power from a variety of renewable energy sources. Customers may also be able to purchase discreet blocks of green power reflecting their need and budget.
A corporate customer interested in a green power program should consider whether or not the program will transfer ownership of the environmental attributes (i.e., the "pollution avoided") from the generator or marketer to the customer.
Several green power products can fix the "fuel charge" component of electricity, thereby providing a hedge against the volatility of fossil fuel prices. If the market cost of fossil fuels increases, then the green power customer may save money relative to purchasing electricity from conventional sources.
Retail Pricing
The price of retail green power will depend on the percentage of the green power content in the energy mix, the generating technologies, and the perceived "intangible" value of utilizing green power. The price for retail green power varies greatly from program to program.
The majority of retail green power offerings appear to be tailored to the residential and retail customer. With programs addressing the needs of larger commercial and industrial customers interested in making a substantial investment in green power are in the early stages of development.
Retail Suppliers
More than 90 utilities in over 30 states offer "green pricing" programs. The Department of Energy provides a comprehensive list of Green Pricing Programs. Also check with your energy provider for any retail green power purchase opportunities.
In deregulated markets there are many well established green power marketers who can provide retail products for companies.
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