| <<
Is there a Green Power Strategy for Canada? | TOC
| How to Invest in Green Power?>>
WHAT TO DO
How to Buy Green Power
Green Power is finally shedding its niche-market status and becoming
a realistic option for more and more Canadian consumers. But, while
Green Power is becoming cheaper and easier to find than ever before,
consumers now face an array of Green Power options, new terminology
and sometimes dubious claims about the "greenness" of
certain Green Power offerings. This buyers' guide sets out the options
and explains what you are getting when you sign up to buy Green
Power.
In general, it costs more to generate electricity from Green Power
sources than from conventional sources, although these costs are
expected to come down as the technologies are further developed
and become more established. Also, our electricity pricing system
doesn't take into account the savings to society of the cleaner
environment and reduced climate change impacts associated with the
use of Green Power. When developers of Green Power sell their electricity
to utilities, the amount they are paid often does not cover all
their costs. Consumers who buy Green Power are paying a premium
that is essentially the difference between the standard price the
developer gets for the sale of electricity and the cost to generate
it through Green Power. This premium can be paid on a regular electricity
bill where bundled green power is available or can be paid separately
by buying Green Power certificates. Consumers who pay this premium
are "greening" their electricity and helping to build
a market for Green Power.
The options include:
"Bundled" Green Power – This option
offers the opportunity for consumers to pay for Green Power on their
regular electricity bill. It is available to certain consumers in
Eastern British Columbia, Alberta, Saskatchewan, Ontario, Prince
Edward Island and Nova Scotia. Even though a utility might be generating
Green Power and putting it into the grid, it is physically impossible
to ensure that "green electrons" from a green power facility
are being delivered to a certain location. However, the utility
can guarantee that Green Power is part of the overall power mix
in the quantities it retails to its customers. In some areas, these
packages are only available to larger industrial or commercial customers.
Green Power Certificates – This option offers the
opportunity for consumers to pay for Green Power separately from
their regular electricity bills. It is a way for consumers to support
the use and development of renewable energy and is available to
all Canadians through provincial and national programs
The certificates, also known as Green Tags, represent a specified
amount of green electricity added to the grid on behalf of the customer.
Revenue from the certificates helps Green Power developers to compete
in the wholesale electricity market by covering the extra cost of
producing this power. Especially in cases where the local electricity
retailer does not offer a bundled green power product, Green Power
certificates enable consumers to "green" their electricity
by adding Green Power attributes (such as reduced pollution) to
the electricity they consume.
Click on the links below for summaries of national and provincial
Green Power programs. In each case, the first table shows marketers
selling "bundled" Green Power and the second lists sources
for Green Power certificates.
National Programs
Back To Top
| 
