European Union
Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market includes the article 5 (Guarantee of origin of electricity from high-efficiency cogeneration).
European environmental NGOs have launched an ecolabel for green power. The ecolabel is called EKOenergy. It sets criteria for sustainability, additionality, consumer information and tracking. Only part of electricity produced by renewables fulfills the EKOenergy criteria.
A Green Energy Supply Certification Scheme was launched in the United Kingdom in February 2010. This implements guidelines from the Energy Regulator, Ofgem, and sets requirements on transparency, the matching of sales by renewable energy supplies, and additionality.
United States
The United States Department of Energy (DOE), the Environmental Protection Agency (EPA), and the Center for Resource Solutions (CRS) recognizes the voluntary purchase of electricity from renewable energy sources (also called renewable electricity or green electricity) as green power.
The most popular way to purchase renewable energy as revealed by NREL data is through purchasing Renewable Energy Certificates (RECs). According to a Natural Marketing Institute (NMI) survey 55 percent of American consumers want companies to increase their use of renewable energy.
DOE selected six companies for its 2007 Green Power Supplier Awards, including Constellation NewEnergy; 3Degrees; Sterling Planet; SunEdison; Pacific Power and Rocky Mountain Power; and Silicon Valley Power. The combined green power provided by those six winners equals more than 5 billion kilowatt-hours per year, which is enough to power nearly 465,000 average U.S. households. In 2014, Arcadia Power made RECS available to homes and businesses in all 50 states, allowing consumers to use "100% green power" as defined by the EPA's Green Power Partnership.
The U.S. Environmental Protection Agency (USEPA) Green Power Partnership is a voluntary program that supports the organizational procurement of renewable electricity by offering expert advice, technical support, tools and resources. This can help organizations lower the transaction costs of buying renewable power, reduce carbon footprint, and communicate its leadership to key stakeholders.
Throughout the country, more than half of all U.S. electricity customers now have an option to purchase some type of green power product from a retail electricity provider. Roughly one-quarter of the nation's utilities offer green power programs to customers, and voluntary retail sales of renewable energy in the United States totaled more than 12 billion kilowatt-hours in 2006, a 40% increase over the previous year.
In the United States, one of the main problems with purchasing green energy through the electrical grid is the current centralized infrastructure that supplies the consumer’s electricity. This infrastructure has led to increasingly frequent brown outs and black outs, high CO2 emissions, higher energy costs, and power quality issues.
An additional $450 billion will be invested to expand this fledgling system over the next 20 years to meet increasing demand.
In addition, this centralized system is now being further overtaxed with the incorporation of renewable energies such as wind, solar, and geothermal energies. Renewable resources, due to the amount of space they require, are often located in remote areas where there is a lower energy demand. The current infrastructure would make transporting this energy to high demand areas, such as urban centers, highly inefficient and in some cases impossible. In addition, despite the amount of renewable energy produced or the economic viability of such technologies only about 20 percent will be able to be incorporated into the grid. To have a more sustainable energy profile, the United States must move towards implementing changes to the electrical grid that will accommodate a mixed-fuel economy.
Several initiatives are being proposed to mitigate distribution problems. First and foremost, the most effective way to reduce USA’s CO2 emissions and slow global warming is through conservation efforts. Opponents of the current US electrical grid have also advocated for decentralizing the grid. This system would increase efficiency by reducing the amount of energy lost in transmission. It would also be economically viable as it would reduce the amount of power lines that will need to be constructed in the future to keep up with demand. Merging heat and power in this system would create added benefits and help to increase its efficiency by up to 80-90%. This is a significant increase from the current fossil fuel plants which only have an efficiency of 34%.
Companies such as Lieef (www.Lieef.com) have started reporting ESG metrics on behalf of companies, and investment funds, in an effort to increase transparency in the space which to date has increased in importance, but has not found a unified measurement tool