What is a Green/ Renewable Energy Tariff And How Do They Benefit Consumers?
As we see governments and energy retailers promote these energy sources, it is natural to wonder what makes them different from others. These tariffs are designed to increase energy production from renewable sources, such as solar and wind, in order to help protect the environment and reduce reliance on non-renewable sources of energy.
By choosing to go green, individuals and organizations can contribute to the transition to a more sustainable energy system and play a role in helping to save the planet
What are the Sources?
- Sunlight (Solar)
- Moving Water (Hydroelectric)
- Wind
- Wave, and
- Biofuels
How does the Initiative work?
In Alberta, the Alberta Utility Commission (AUC) promotes renewable energy generation by requiring retailers offering energy from renewable sources to do one of two things:
-
01
Direct Sourcing
Retailers can generate their electricity directly by themselves from renewable sources (mostly from solar and wind sources), or
-
02
Buy Certificates
Buy Renewable Energy Certificates (REC) from within Canada and then offer the equivalent to their consumers as Green Energy.
What options are available?
Energy customers have the option to select a percentage of green energy to be added to their consumption. In most cases, the options are:
- 25%
- 50%, or
- 100%.
If a customer chooses a 100% green energy tariff, their energy supplier will add an equivalent amount of renewable energy to the energy grid to match their consumption, ensuring that 100% of their electricity usage is derived from renewable sources such as solar or wind.
What are the benefits?
By choosing this energy tariff, customers pay an additional premium on top of their electricity charges as a way of signaling their support for renewable energy initiatives. This extra amount is then used to invest in generating more energy from renewable sources, such as solar and wind. This provides additional incentives for investors to fund future renewable energy projects and helps to reduce greenhouse gas emissions.
Finally, by choosing to go green, customers can play a role in the transition to a more sustainable energy system and contribute to the effort to protect the environment
