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

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

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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

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  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

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  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.

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  4. Market
    Overview
    VOLUNTARY RENEWABLE
    ENERGY
    PAGE
    4
    © 2020 Center for Resource Solutions. All rights reserved.

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  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

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  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

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  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

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  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

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  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)

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  10. Green-e
    Certification
    PAGE
    10
    © 2020 Center for Resource Solutions. All rights reserved.

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  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)

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  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

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  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

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  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

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  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

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  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)

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  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)

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  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%

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  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

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  20. MIGreenPower and Green-e®
    Certification
    Julie Londo, Renewable Solutions – Sales
    Marketing Program Manager - MIGreenPower
    May 27, 2020

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  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?

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  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
    -

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  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

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  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

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  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

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  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

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  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

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  28. © 2020 Center for Resource Solutions. All rights reserved.
    MICHELLE MCGINTY
    PROGRAM OUTREACH MANAGER
    [email protected]
    MATT HUTCHINSON
    PRODUCT INNOVATION MANAGER
    [email protected]
    JULIE LONDO
    RENEWABLE ENERGY PROGRAM MANAGER
    [email protected]
    www.resource-solutions.org

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