Purchasing Renewable Power

Federal agencies can purchase renewable power or renewable energy certificates (RECs) from a utility or other organization to meet Federal renewable energy requirements and goals. Renewable power and RECs can be good choices for facilities where on-site projects may be difficult or capital budgets are limited.

There are three different methods for purchasing renewable power that is not generated on a Federal site:

• Regulated Utility Green Pricing Programs: Green pricing is an optional utility service that allows customers to support a greater level of utility company investment in renewable energy technologies. Participating customers pay a premium on their electric bills to cover the incremental cost of the additional renewable energy. To find out if your utility has a green pricing program, consult the Green Pricing Map and Green Pricing Spreadsheet on the Green Power Network.

• Renewable Energy Certificates: RECs, also known as renewable energy credits, green certificates, green tags, or tradable renewable certificates, represent the environmental attributes of the power produced from renewable energy projects and are sold separately from commodity electricity. RECs are an attractive option for Federal facilities located where renewable power is not readily available. For more information, read the REC Quick Guide and the Guide to Purchasing Green Power. There is also helpful information, including historical REC prices, available posted to the Green Power Network website.

• Competitive Renewable Power: In states with competitive electricity markets, Federal agencies can purchase renewable power through competitive electricity procurements. The Green Marketing Map on the Green Power Network shows states that have competitive renewable power product offerings.

The General Services Administration (GSA), Defense Logistics Agency Energy (DLA Energy), and Western Area Power Administration (Western) each assist Federal agencies with renewable power or REC purchases.

Federal agencies that purchase renewable power may be eligible to join the Environmental Protection Agency's Green Power Partnership, a voluntary program designed to reduce the environmental impact of electricity generation by promoting renewable energy. FEMP can help determine the best renewable power purchase option in your area and provide you with Green Power Partnership requirements and application procedures.

Power Purchase Agreements for On-Site Projects

Power purchase agreements (PPA) allow Federal agencies to develop on-site renewable energy projects through alternative financing. Additional information is available in the PPA section.

Sample Publications and Resources

Visit the Purchasing Renewable Power Resources page for more information on purchasing renewable energy. FEMP also offers services to help determine the best renewable energy power option based on geographic location.