Green Power
Awards Highlight Market Makers
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While much of the public-policy debate about renewable energy currently centers on such issues as production tax-credits and mandatory portfolio standards, this conference and the associated awards programs are devoted to commercial retail market activities -- in other words, the voluntary purchase of green power and renewable energy credits by end-use customers.
Although the policy initiative for expanding retail choice has reached a plateau in most parts of the nation, the green power market continues to grow, said Kurt Johnson, director of EPA's Green Power Partnership. "Right now, 50 percent of Americans have access to a grid-connected green power product," from their native utility or from a non-utility seller, Johnson noted.
That's the potential market. Actual green power sales, according to a new study by the National Renewable Energy Laboratory that will be released at the conference, now exceed 3.2 billion kilowatt-hours annually. Blair Swezey of NREL said that utility “green pricing” programs sold 1.3 billion KWh last year, while 1.9 billion KWh were sold through green power products available to customers participating in retail choice markets. Another growing component of the marketplace is for renewable energy credits (RECs), which reached 700 million KWh, according to NREL’s figures.
Those transactions, in turn, support a little more than 2,000 MW of installed capacity for wind, solar, biomass and small hydro projects, Swezey noted. Nearly 1,650 MW of that is already in operation, with another 393 MW of planned construction.
At the conference, EPA will present awards to major commercial buyers and sellers of green power. I cannot yet reveal the winners for the renewable suppliers or purchasers, but the competition has been growing mightily. “We started this back in 2001 and had 20 nominees and 7 winners,” said EPA’s Kurt Johnson. “This year, we had over 80 nominees in the buyer’s category.” EPA will cite a total of 19 energy buyers next week, and half a dozen suppliers will receive recognition. This is the first year in which a “Supplier of the Year” will be selected.
The intent of the awards is not only to honor those making a commitment to the voluntary green market, but also to encourage others to join the market. “You shine a spotlight on people and others will follow,” Johnson said. He said market growth has been driven by significant participation among commercial, industrial and institutional energy users. “Carnegie Mellon was a winner in our first awards,” he said. “That set an example for other universities. Now we have lots of universities following their lead.”
The other set of awards will be sponsored by the Center for Resource Solutions, the San Francisco-based non-profit group that developed and administers the “Green-e” certification standards for green power sellers. There are three categories of awards, called Beacon, Pioneer and Pilot, to highlight the activities and achievements of utilities, companies, groups, and individuals in fostering and sustaining the public’s interest in green power, and to identify the most innovative ways to market green electrons to consumers.
As a member of the selection committee,* I learned about marketing efforts that are national in scope as well as many others that are highly localized -- whether in a particular utility territory, across a broader region, or even at a site-specific level. There were 30 entities or individuals in contention for the three awards; some were nominated in more than one category.
Although I can’t reveal the winners or even do justice in describing all the major candidates in this forum, I did want to point out some characteristics of what I considered to be the most innovative marketing approaches. Following the awards ceremony, I’ll post the winners’ names in the comments section below, along with links to CRS and EPA sites that will provide much more detail.
The distinctions among the awards categories are that the Beacon Awards are meant to recognize innovative marketing by green power suppliers, while the Pilot Awards cite cutting-edge outreach efforts by organizations or individuals to boost interest in green power in specific sectors. The Pioneer Awards honor individuals whose long-term efforts have helped create the green power marketplace. Utilities, retail-seller and municipal agency programs tend to cluster in the first two categories, although individuals and non-profit groups also earned nominations.
Utility and retail-seller efforts ranged from Public Service Company of New Mexico’s “Sky Blue” green-pricing plan that is now being used by about 5,000 PNM customers to Portland General Electric’s public outreach that has resulted in signing 30,000 green power buyers. Smaller in scope but no less effective were green power outreach programs by the City of Edmond, Oklahoma, and the Lenox Municipal Utilities in Iowa.
Some programs, such as the San Francisco Department of Environment’s “Generation Solar” program, aim to support expansion of solar photovoltaics by reducing zoning and permitting barriers for customers to install PVs, as well as to help create an environment to encourage more manufacturing companies and contractors to get into the business of providing solar components in the city. The New York State Energy Research and Development Authority (NYSERDA) takes a statewide approach to promoting renewable purchases by commercial firms and provide funding for development of 500 MW of new wind capacity, with 280 MW or more directly supported by green-power retail sales.
Another statewide effort, organized by the Maine Green Power Connection, boasts a supplier-neutral promotional effort that gives Maine residents objective information about green-pricing and 15 different green power products offered by 9 suppliers. MGPC also tracks the market, which it says will reach 50 million KWh of green energy purchased this year.
Partnerships are the key to success for other efforts, including the extensive public awareness program managed by the Western Washington Green Power Campaign, which provided marketing on behalf of three utilities with support from the Bonneville Foundation. Among the most ambitious partnering efforts is one headed by the World Resources Institute (WRI), which coordinates green power purchasing by such major commercial and industrial energy customers as Cargill, Dow Chemical, DuPont, FedEx Kinkos, General Motors, and IBM. Among its extensive outreach and education efforts, WRI has set a goal of developing 1,000 MW of new renewable capacity by 2010 supported directly by end-user purchases. To date, the dozen WRI partners are committed to 123 MW at 330 facilities in 26 states.
Marketing partnerships between Renewable Energy Choice and Whole Foods, for instance, bring the green-power purchasing decision down to the neighborhood level, while the group, Citizens for Pennsylvania’s Future (PennFuture), decided to make its Harrisburg headquarters building 100 percent green through utility purchases and installation of a roof-top PV system.
The Pioneer Awards are something like a Hall of Fame for renewable energy advocates, with this year’s notable nominees including Rob Harmon of the Bonneville Environmental Foundation, Bruce McLeish of Constellation NewEnergy, Jim Dehlsen of Clipper Windpower, Alan Apt and Jim Welch of the city of Fort Collins, Colorado, and its electric utility, among others.
I found it especially difficult to choose a single winner in this category, but consoled myself with the understanding that the long-standing achievements of many of these people mean that they will likely have another opportunity to win a place in the Pioneer pantheon in the future.
The Bottom Line: In the debates about whether the best way to promote renewables should be through RPS mandates, government tax-credits and subsidies, or through retail purchases, I’ve always favored market-based approaches as the most sustainable for the long haul. The surprise of recent years has been the extent to which larger commercial customers are embracing green power products, often in combination with extensive energy efficiency programs.
The value of these types of awards, whether EPA’s recognition of prominent buyers and sellers, or CRS’ tributes to marketing and outreach programs, is that when people learn about viable green-power options and see who else is entering the market, they are more likely to join with a purchasing commitment. A national spotlight on those who are making the market work can influence others to follow the light.
* I was not involved with the EPA Green Power Partnership Awards selection process.
Arthur O’Donnell is Editorial Director for Energy Central. The Business Electric is found exclusively on Energy Central.