Connecticut Commercial and Industrial Customers' Increased Commitment to Renewable Electricity
For the past ten years or so, Connecticut's C&I customers have been well aware of energy efficiency efforts, and many have taken advantage of the various programs designed to help them reduce their usage, including installation of solar panels, smart HVAC systems, and lighting retrofits, initially with the use of CFLs, then ultimately through LEDs.
Over the past couple years, we have seen an uptick in the number of mid-to-large sized companies making a commitment to 100% renewable electricity, joining companies like Starbucks, Walmart, P&G and Johnson and Johnson, among others.
To achieve this goal, 100% of their electricity must be from renewable sources. The three main ways they can do this is through the following means:
- Onsite generation of renewable power (typically through large solar arrays). However, very few companies are able to get to 100% production by this method.
- Purchase of renewable electricity from a supplier or generator through power purchase agreements (produced offsite), or
- Via purchase of renewable energy certificates, aka RECS, in amounts that mirror a company's load. Each REC represents the environmental benefit of 1 megawatt hour (MWh) of renewable energy generated and put on the grid, and retired after the RECs are purchased. Most sold in our region come from wind power.
Because the price of RECs has come down dramatically, to the point where the cost is relatively painless, buying these is a quick and cost effective method of being able to say your business runs on 100% green power.
In fact, we are now pricing load following 100% green options alongside traditional supply options for many of our customers who express an interest in making a commitment to green power, and those who elect to do so are often pleasantly surprised when they see the price.
In conclusion, I would strongly encourage customers to take a look at green power as their supply contracts come up for renewal. As always, we are here to help you do this.
Tom Guerra, Director - CBIA Energy Connections