Case Studies: Renewable Energy and Green-e Certification Featuring DTE Energy and Green Mountain Energy

For businesses and households switching to renewable energy, the options can be confusing. Green-e® Energy certification helps buyers feel confident in the environmental benefits of their purchases and provides an important point of differentiation for sellers in a crowded marketplace. In this free 1-hour webinar, attendees heard from DTE Energy and Green Mountain Energy on the design of their programs, including the benefits of providing Green-e® certified products. DTE Energy discussed offering a certified product as a regulated utility in Michigan, and Green Mountain Energy discussed its residential solar product in the Texas competitive electricity market.

Topics discussed will include:

Why they chose to offer Green-e® certified renewable energy products
The basics of renewable energy program design
The growing demand for renewable energy products
Benefits seen from offering a third-party certified product, including differentiation, risk reduction and positive brand recognition

Also included in this webinar was an introduction to Green-e® Energy, the leading renewable energy certification program in North America. With over 62 million megawatt hours (MWh) certified in 2018, the program verifies and certifies voluntary renewable energy products to ensure they are of the highest environmental quality and are marketed and sold accurately and transparently.

Speakers:

Matt Hutchinson, Product Innovation Manager, Green Mountain Energy
Julie Londo, Renewable Energy Program Manager, DTE Energy
Michelle McGinty, Manager, Program Outreach, Center for Resource Solutions

Transcript

1. CASE STUDIES RENEWABLE ENERGY & GREEN-E® CERTIFICATION MICHELLE MCGINTY PROGRAM OUTREACH MANAGER CENTER FOR RESOURCE SOLUTIONS MATT HUTCHINSON PRODUCT INNOVATION MANAGER GREEN MOUNTAIN ENERGY JULIE LONDO RENEWABLE ENERGY PROGRAM MANAGER DTE
2. AGENDA PAGE 2 © 2020 Center for Resource Solutions. All rights reserved. • Introduction to CRS • Voluntary Renewable Energy Market Overview • About Green-e Energy Certification • Case Studies with Guest Speakers: • Green Mountain Energy: Matt Hutchinson, Product Innovation Manager • DTE: Julie Londo, Renewable Energy Program Manager
3. PAGE 3 Nongovernmental Organization (NGO) creating policy and market solutions to advance sustainable energy since 1997. • Renewable energy and climate policy • Renewable Energy Markets annual conference • Green-e® certification for suppliers and users of renewable energy and carbon offsets in the voluntary market Center for Resource Solutions © 2020 Center for Resource Solutions. All rights reserved.
4. Market Overview VOLUNTARY RENEWABLE ENERGY PAGE 4 © 2020 Center for Resource Solutions. All rights reserved.
5. Renewable Energy Certificates (RECs) PAGE 5 © 2019 Center for Resource Solutions. All rights reserved. 1 MWh REC Electricity Grid Tracking System Generator 1 REC represents the renewable attributes of 1 MWh of renewable energy generation
6. All renewable energy procurement methods involve RECs PAGE 6 © 2020 Center for Resource Solutions. All rights reserved. Self Generation (Lease and Own Generation) Onsite self-generation or lease Offsite self-generation or lease Direct Purchasing (Purchase from a Generator) Onsite PPA Offsite physical PPA Virtual PPA Direct attribute-only purchase Retail Purchasing (Purchase from a Supplier or Utility) Utility green pricing Direct access tariff Community renewables Competitive green power Unbundled certificates
7. PAGE 7 © 2020 Center for Resource Solutions. All rights reserved. Self Generation (Lease and Own Generation) Onsite self-generation or lease Offsite self-generation or lease Direct Purchasing (Purchase from a Generator) Onsite PPA Offsite physical PPA Virtual PPA Direct attribute-only purchase Retail Purchasing (Purchase from a Supplier or Utility) Utility green pricing Direct access tariff Community renewables Competitive green power Unbundled certificates Green-e Direct
8. PAGE 8 © 2020 Center for Resource Solutions. All rights reserved. Self Generation (Lease and Own Generation) Onsite self-generation or lease Offsite self-generation or lease Direct Purchasing (Purchase from a Generator) Onsite PPA Offsite physical PPA Virtual PPA Direct attribute-only purchase Retail Purchasing (Purchase from a Supplier or Utility) Utility green pricing Direct access tariff Community renewables Competitive green power Unbundled certificates Green-e Direct
9. Voluntary Sales Increased in Each Market Segment PAGE 9 © 2020 Center for Resource Solutions. All rights reserved. NREL, Status and Trends in the Voluntary Market (2018 data)
10. Green-e Certification PAGE 10 © 2020 Center for Resource Solutions. All rights reserved.
11. Consumer protection for voluntary renewable energy products • Third-party Audit of: • Sales and Supply • Marketing Materials • Independent Governance Board By the Numbers ➢ 352 Energy participants ➢ Over 62 million MWh ➢ 1.24 million retail purchasers, of which 61,000 were businesses Green-e Energy Certification PAGE 11 © 2019 Center for Resource Solutions. All rights reserved. Green-e Energy Certified Retail Sales by Product Type (MWh)
12. Consumer protection for voluntary renewable energy products • Third-party Audit of: • Sales and Supply • Marketing Materials • Independent Governance Board By the Numbers ➢ 352 Energy participants ➢ Over 62 million MWh ➢ 1.24 million retail purchasers, of which 61,000 were businesses Green-e Energy Certification PAGE 12 © 2019 Center for Resource Solutions. All rights reserved. Number of Retail Customers Purchasing Green-e® Energy Certified Products by Type
13. • 15-year “New Date” • Must be surplus to regulation • No double counting, selling or claiming • GHG reduction benefits must be included • State-specific requirements and restrictions • Vintage requirements Supply Must Meet the Green-e Standard PAGE 13 © 2020 Center for Resource Solutions. All rights reserved. 6 MONTHS 12 MONTHS 3 MONTHS
14. Residential Competitive Green Power C h o i c e s i n t h e Te x a s C o m p e t i t i v e M a r k e t 1
15. © 2019 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 2 About Green Mountain Energy Green Mountain Energy is the longest-serving renewable energy retailer in the U.S. Use the power of consumer choice to change the way power is made. Our Mission We offer cleaner electricity products, carbon offsets, and sustainable solutions to residential and commercial customers. Our Products Since 1997, our customers have collectively avoided more than 81 billion pounds of CO2 . Customer Impact 1997 1998 2002 2009 Green Mountain Energy is founded. Green Mountain begins offering two Green-e® certified products: Wind for the Future & 75% Renewable Power Texas retail electricity market opens. Green Mountain begins offering 100% wind product in Texas. Green Mountain launches Renewable Rewards net metering plan in Texas for rooftop solar customers. Green Mountain receives J.D. Power award for highest customer satisfaction for residential electric providers. 2014 Green Mountain launches Go Local Solar plan sourced entirely from Texas solar generation. 2019 2020 Recognized as Retail Energy Provider of the year by Energy Marketing Conferences. Sources: (1) Company Timeline - https://www.greenmountainenergy.com/our-story/our-company-mission/our-company-timeline/ (2) Past Sustainability Reports - https://www.greenmountainenergy.com/our-story/sustainability/past-sustainability-reports/ (3) Press Releases
16. © 2019 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 8% 26% 21% 42% 34% 43% 62% 62% 13% 25% 32% 36% 38% 40% 50% 63% All Ages Millenials Keeping my total energy bills affordable Utilize clean energy sources to be better stewards of the environment To best utilize all of our domestic energy resources Keeping the cost of gasoline down Increasing the use of solar power Ending American dependence on imported oil Increasing the use of wind power Drilling for more oil and natural gas in the United States 3 Demand for renewable energy products in Texas is growing. Clean energy sources are important to customers, especially for millennials. Energy Issues Important to Residential Customers Deloitte Resources: 2019 Energy Management Study(2) 0 10 20 30 40 50 60 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Million RECs Reporting Year Sources: (1) ERCOT Annual REC Reports - https://www.texasrenewables.com/reports.asp (2) Deloitte Resources 2019 Study - https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/energy-study-of-businesses-and-residential-consumers.html Texas Voluntary REC Retirements ERCOT Annual REC Reports(1)
17. © 2019 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 4 Our Go Local Solar plan brings Texas solar to residential customers. Customers want access to solar, even if they’re unable to install solar panels. Customer Benefits: • Made in Texas • 100% Solar Energy • No Installation of Solar Panels Required • Green-e® Energy Certified How It Works: 1. Green Mountain purchases RECs from solar parks in Texas to match customer usage. 2. Green Mountain uses electricity from the grid to serve customer’s electricity needs. 3. If the solar parks produce less than expected, Green Mountain purchases additional Texas solar RECs to match customer’s usage. Solar Parks for Go Local Solar: • Green Mountain Energy Dakota Solar Park (near Dallas) • Green Mountain Energy Gable Solar Park (near Houston) • Green Mountain Energy Azure Solar Park (near McAllen)
18. © 2019 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 5 Green-e® Energy certification assures customers they are receiving high-quality renewables. Customers often are unsure if plans marketed as green are renewable. For Texas customers, Green-e® Energy certified means: • High Quality – You’re supporting renewable energy projects in Texas that meet Green-e quality standards (e.g. recent generation). • Verified – The renewable energy you purchase is independently audited by a third-party. • Transparent – You receive additional disclosures about the renewable energy included in your purchase (e.g. future and historical Product Content Labels). • Compliant – Your renewable energy purchase complies with sustainability standards including LEED, EPA guidance, and the Federal Trade Commission’s Green Guides. Product Content Label Green-e Energy Certified New Renewables in Go Local Solar Generation Location Solar 100% Texas Total Green-e Energy Certified New Renewables 100%
19. © 2019 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 6 Green-e® certification benefits Green Mountain by providing product differentiation. Certification sets Go Local Solar apart in a competitive retail electric market. 100% Renewable Plans Texas Local Solar Plans Go Local Solar Number of Plans 40+ 10+ 1 100% Solar, No Installation ? ✓ ✓ Made in Texas ? ✓ ✓ High Quality Renewables ? ? ✓ Third-Party Verified   ✓ Disclosure of Actual Renewables   ✓ Complies with Sustainability Standards   ✓ Green-e Certification Texas Competitive Retail Electric Providers ~ 42 plans found Shopping for 100% Renewable Plans in Texas
20. MIGreenPower and Green-e® Certification Julie Londo, Renewable Solutions – Sales Marketing Program Manager - MIGreenPower May 27, 2020
21. 2 DTE headquarters DTE operations 14.2 billion operating revenue in 2018 Michigan’s leading investor and producer of clean energy Top quartile in residential customers satisfaction for both DTE Electric and DTE Gas 100+ years of continuous dividend payments More than 10,000 employees A force for growth Fortune 300 company Serving more than 3.2 million customers in our electric and gas businesses What is DTE?
22. DTE has aggressive clean energy goals 3 What is driving our renewable energy investment? • Michigan Renewable Portfolio Standard - 2008 • Voluntary program growth through DTE’s MIGreenPower -2017 • Commitment to Net Zero What does DTE’s current renewable portfolio look like? • 14 wind parks and 31 solar parks • Gratiot Wind park commissioned in 2012 • More than 1,000 MW of installed renewable energy generation capacity -
23. MIGreenPower Introduced in 2017 4 The program is sourced from the following sites: Pinnebog Wind Park (51 MW - Huron County) Lapeer Solar Array (48 MW – Lapeer, MI) O’Shea Park Solar Array (2 MW – Detroit, MI) • Program life is 25 years based on life expectancy of the projects • Customers choose a percentage of their monthly energy usage in 5% increments up to 87.5% to reach 100% renewables • No long-term contract required • Option to change enrollment percentage monthly
24. MIGreenPower Customer Survey Responses 5 • Promotes renewable energy development in Michigan – providing jobs and investment in a clean energy economy • Reduces carbon and other emissions in Michigan, helping to ensure a cleaner future for our children • Allows customers access to renewable energy without the hassle of owning power generation or mounting solar panels on their property
25. MIGreenPower Enrollments & Retired REC’s 6 1,081 3,816 10,216 12,751 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2017 2018 2019 2020 # of Customers MIGreenPower Enrollments 5,348 13,057 24,851 0 5,000 10,000 15,000 20,000 25,000 30,000 2017 2018 2019 # of REC's *REC's include all commercial and residential subscriptions 25% or greater Retired REC's Since 2017 MIGreenPower customers have supported: • 60,975,830 kWh of clean energy in Michigan • Equivalent to offsetting 43,112 metric tons of carbon dioxide • Greenhouse gas benefit equivalent of taking 9,314 cars off of the road for one year* *Based on EPA Greenhouse gas equivalencies calculator
26. Benefits to obtaining Green-e® Certification 7 Green-e certification demonstrates a program’s commitment to full transparency about the sources for renewable offerings Green-e promotion on website and marketing materials establishes Green-e as a 3rd party auditing agency for certification compliance A growing number of businesses have sustainability goals. Green-e certification supports LEED and other sustainability certifications Whether you have one program or multiple offerings, Green-e certification promotes confidence in the quality of your program
27. Green-e® Content on all MIGreenPower Promotions 8 Product Content Labels for both MIGreenPower product offerings Green-e displayed prominently on the MIGreenPower website MIGreenPower brochure
28. © 2020 Center for Resource Solutions. All rights reserved. MICHELLE MCGINTY PROGRAM OUTREACH MANAGER Michelle.McGinty@resource-solutions.org MATT HUTCHINSON PRODUCT INNOVATION MANAGER Matthew.Hutchinson@greenmountain.com JULIE LONDO RENEWABLE ENERGY PROGRAM MANAGER Julie.Londo@dteenergy.com www.resource-solutions.org