Energy Innovation
Chart Green Energy
Path for Business
First in a series focused on energy management practices, innovative solutions for business, and corporate leaders.
By Carrie Cullen Hitt
Carrie Cullen Hitt, vice president of product management/renewable products, Constellation NewEnergy New England.Although going green may not be such a novel idea anymore, businesses and public entities small and large are realizing there’s more to it than just the feel good reward and pat on the back from environmentalists.
Unlike trends which suffer short life-spans, the choice to buy green power is gaining momentum as an actual business practice as it helps promote the ultimate goal of social and environmental responsibility. Couple this with economic incentives, green power has become more affordable and renewable energy seems less of a trend and more of a necessary step towards the future of American energy independence. As customers are beginning to take notice when making purchasing decisions and investors are taking a harder look at environmental practices and associated liabilities, businesses are finding that a green positioning enhances both its corporate image and also helps with product branding.
Renewable energy comes from a variety of sources including hydroelectricity, solar, wind and biomass. The generation of electricity from any of these sources is fed directly onto the local electric grid. Renewable Energy Certificates (REC) are designed to manage the sale and purchase of renewable energy. Companies purchase RECs from their energy supplier and this guarantees their purchase provides for financial incentives to support renewable electricity, and offsets electricity generated from traditional sources. REC purchases support the future development of renewable energy and lessen our dependence on fossil fuel generation. The most immediate environmental impact is the avoidance of harmful chemicals and greenhouse gases that would have been released into the atmosphere by fossil fuel generated sources.
Purchasing green power helps mitigate price spikes caused by the volatility of the fossil fuel market that often relies on foreign supplies. Unlike fossil fuel based energy, which is subject to volatile price swings, renewable energy is supplied by “fuels” that are both domestic and self replenishing thus reducing volatility. Adding renewables helps diversify generation sources which contributes to reliability, therefore benefiting all consumers. Even though renewable energy can be more expensive, companies are anticipating the environmental benefits and financial paybacks that will come as more diversified power sources positively impact the grid. As well, smart companies are looking down the road towards the potential regulation of green house gas and are making the bet that purchasing renewable energy could be a great way to be ahead of the curve if or when regulations are enacted.
So how can your company get started on a green path via the purchase of RECs? The easiest way to begin this process is to speak with your energy supplier. With the increasing demand for renewable power, many energy suppliers have dedicated internal resources for managing the purchasing and sale of RECs. Here at Constellation NewEnergy, the number of renewable electricity customers we serve has increased over the past two years. We expect the number to continue to grow as we’ve begun to focus on highlighting the benefits that renewable energy can bring to all customers. By the end of the year, we expect that 10 percent of the electricity we supply will have a renewable component.
Our qualified energy experts work with individual customers to analyze their power needs and together find a solution to cost effectively incorporate the purchase of RECs into their overall budget. We are also here to help customers who are looking to participate in the EPA’s Green Power Partnership Program, the US Green Building Council’s Leadership in Energy Efficient Design (LEED) program, and the Green-e certification program. Additional recognition in these programs is a great way to further publicize a company’s commitment to green energy and a cleaner environment.
Renewable energy is catching on here in Connecticut too.
Most recently, Constellation NewEnergy helped the City of Hartford to incorporate green power into their overall energy purchasing budget. We worked with the City to stabilize their energy costs and provided them with RECs to help offset electricity usage from traditional fuel sources. The portion of RECs provided by Constellation NewEnergy helped the City to achieve the goal of purchasing 20 percent of its energy needs from renewable sources three years ahead of its 2010 goal.
While it’s true that not every business will be able to offset 100 percent of its energy needs with the purchase of RECs, competitive energy suppliers such as Constellation NewEnergy have the knowledge and expertise available to work with your company’s needs to manage efficiencies and integrate the purchase of green power.
For each and every REC purchased the market for renewable energy increases and paves the way for a greener and more sustainable future.
