As a result of the deregulation of the electricity generation market in Illinois, new means to purchase power have emerged. One of the new products that a customer can buy is green power. Since green power is relatively new, few buyers know much about it or how it can be purchased. Nania Energy, now provides its clients with the option to procure Green Energy.
What is Green Energy?
Put simply, green power is made up of any supply origin utilizing renewable, low-carbon emitting sources. These sources include wind, hydro, solar, and bio-mass. Green power sources produce favorable environmental outcomes because their use generally avoids or reduces the adverse environmental impact of conventional electricity generation. According to the EPA, every kilowatt-hour (kWh) of green power generated avoids the emission of more than one pound of carbon dioxide from traditional fossil-fuel fed power plants.
How is Green Energy Regulated?
Green power is generated using one of the above-mentioned sources and is then fed into the electrical grid of one of the nation's Regional Transmission Organizations (RTOs). These RTOs issue Renewable Energy Certificates (RECs) to green power suppliers for each kWh generated, certifying that the power that was fed into the power grid was generated from green power.
Green power suppliers then solicit users of electricity to purchase these certificates. These certificates represent the reduced emissions of renewable generation compared with those of conventional generation. These RECs are known as an "off set" because they guarantee that a portion or all of the power being taken off the national grid by a specific user's consumption is being fed at some origin point by renewable green power.
What are the Benefits of Green Power?
Once a company has made the decision to purchase green power through Nania Energy, what benefits can they expect other than the "feel good" notion of protecting the environment? Many companies have utilized their green power purchase as a means of promotion within and outside of the company. Companies have promoted their green power purchase internally as a means of improving employee morale or to initialize company-wide energy conservation programs. Externally, companies and organizations have used green power purchases as a public relations tool to promote themselves as a responsible entity. Possible methods include press releases or signage around their building. The EPA has even created a site with the top 25 purchasers of green power in the US (www.epa.gov/greenpower/partners/top25.htm).
How is Green Energy purchased in Illinois?
An end-user may purchase these RECs in one of two ways:
Fixed Energy Quantity Block:
Fixed Energy Quantity Block purchases are usually performed in regulated markets. These purchases involve a set amount of 100 percent renewable energy power. For example, a customer may designate a purchase of 100,000 kWh of green power. The cost of this purchase is determined by how many kWh that are purchased.
Percentage of Use Purchase:
Under this purchase selection, a customer elects to purchase green power as a fixed percentage of their monthly electricity usage. A customer may choose to designate anywhere from 1% to 100% of their load as green power. This selection is priced either per kWh or as a percentage of a company's initial spend (for example, designating 25% of a load as green power may result in a 4% increase in a normal electricity spend). The cost for this green power is calculated monthly based upon a customer's usage.
Other Designations
There are specific designations that a customer can make when purchasing green power in Illinois by selecting the specific source of green power. For example, a company may wish to designate that 100% of their green power purchase be supplied by solar power, or that 100% of their green power come from Illinois sources. These specific designations add a significant cost to any green power purchase.
It is important to note that green power may be purchased regardless of whether you are still taking service from a standard utility company or if you are taking advantage of savings with a retail electricity supplier like Chicago based Nania Energy. You are not buying the specific power generated by green power but only the certificate.
Green power is increasingly utilized both as a means to reduce environmental pollution and as a geostrategic method of decreasing reliance on Mideast oil. This article has hopefully explained exactly what green power is in the electricity market, the methods of purchasing it, and the possible benefits of its use for Illinois companies.
If you would like more information about Nania Energy Inc. or non-residential energy purchasing options including, Green Power please visit our website at http://www.naniaenergysupplier.com.
About Nania Energy
Nania Energy is an Illinois energy supply company. The company, located in the Western Suburbs of Chicago has numerous years of experience helping its business clients purchase Natural Gas and Electricity. Nania Energy provides its Illinois clients and their partners with exceptional value in the natural gas & electric market. They help clients maximize energy savings, while minimizing both risk and effort. Nania Energy clients focus on their business while the procurement and delivery of natural gas and electricity via the host utility is handled by Nania Energy. Nania Energy works with clients and Electricity and Natural Gas providers that view business relationships as partnerships for the common good of all parties.