Clean Energy Procurement Best Practices

Federal clean energy procurement best practices depend on many factors and governmental regulations.

FREMONT, CA: Federal units are pursuing sustainability-backed electrical energy procurement services. Various clean electricity generating plants provide federal procurers with renewable and carbon pollution-free sustainability offerings. Procurement options depend on product availability and market type. Agencies need to focus on energy efficiency before decarbonizing a site. Procurers must study the energy project's location and energy attribute certificates (EAC) ownership.

Different market types offer different suppliers and energy-generating services. Procurers need to consider the appropriate procurement option to make the right decision.

Utility green pricing: Utility-owned clean energy assets or third-party clean energy projects on the local grid are typically sourced for these products, usually offered month-to-month at a premium price over existing electricity bills. An electric utility may buy unbundled RECs or EACs from projects outside its regional network.

Market Type: Vertically integrated utilities offer these products. Cooperatives and municipal utilities may also offer them in states with retail electric choice markets.

Utility Green Tariff: Utilities offer green tariffs that allow customers to purchase electricity and energy efficiency credits from clean energy projects under one contract. Utility companies or third parties may own the project. These contracts are often long-term and offer a chance to save money in the long run. Federal agencies can use DOE's Federal Energy Management Program (FEMP) to understand the details of specific products, especially because the payment structure varies.

Market Type: Vertically integrated markets offer these products. The utilities may also offer these services to consumers in states that offer retail electric choice markets, such as cooperatives and municipal utilities.

Competitive Supplier: Federal agencies purchase electricity from GSA and DLA Energy in most of these markets. Transmission and distribution services remain the responsibility of the distribution utility.

Market Type: Retail electric choice markets

Community Choice Aggregation (CCA): Many Community Choice Aggregators offer clean electricity options to their local communities. CCAs provide electricity to customers, and their investor-owned utilities transmit and distribute to their sites. An EAC purchased by a CCA from a renewable project outside their regional grid may be unbundled.

Market Type: Both vertically integrated and retail electric choices. The specifics of community choice aggregation programs vary considerably across states.