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Home No Idling Biofuels Green Tags Health Local Foods

Cool Communities Solution

Green Tags

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.  


 

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.  

 

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

The Maine Partners for Cool Communities is the product of the joint efforts of the Maine Chapter Sierra Club, the American Lung Association of Maine, the Maine Council of Churches, Physicians for Social Responsibility Maine, and the Maine Energy Investment Corporation.

Questions or comments about this web site?  

Please contact maine.chapter@sierraclub.org 

Copyright© 1998-2006, Sierra Club Maine Chapter
Last Modified: 12/11/07