Document Actions
Environmental Attributes
Green Tags Production and Marketing
Renewable energy projects create electricity without pollution. This, and other incremental values of renewable energy generation, compared to generation from conventional sources such as fossil fuel and nuclear, are often recognized and quantified as the environmental attributes, “Green Tags”, “Renewable Energy Credits” (RECs), or “Tradable Renewable Certificates” (TRCs). These are defined and sold separately from energy. A voluntary national standard exists to ensure consistency in these products -- visit Green-E's web page for more information. One Green Tag is produced with every 1,000 kWh of clean energy, and currently sells for between $2 and $5 per tag in the Northwest. Green Tag buyers, such as the Bonneville Environmental Foundation, Green Mountain Energy, or 3 Phases Energy, resell to utilities and others interested in supporting renewable energy. Green Tags typically belong to the buyer of the power, depending on the structure of the Power Purchase Agreement. While environmental attributes can often be sold for a substantial amount, the market is quite volatile and sale contracts are often only available for three to five years.
Note that certain incentive programs define the ownership of green tags. Contracts for grants, rebates, or other types of project financing may include details on Green Tags going to the funding source for part or all of the system’s lifetime. Only when the system owner retains ownership of the Green Tags may the entity choose to claim the green values of their energy or to sell the Green Tags and their claims for additional revenue. For larger-scale installations, for which a Power Purchase Agreement is necessary, the Green Tags usually are contracted to belong to the buyer of the power.
