Friday, June 3, 2022

Creating a clean and resilient energy future for New England

 


Creating a clean and resilient energy future for New England


Cape Light Compact
Published June 3, 2022 


Solar projects like the one pictured above are among the sources of Renewable Energy Certificates.

By now, the importance of climate action is clear. While there are many ways to “go green” and encourage sustainability, one could be forgiven for being unsure about where to start.

To take action on climate change, many Cape Cod and Martha’s Vineyard residents are embracing electrification in many ways such as installing home heat pumps and solar power or driving electric cars. While accessible to some, these upgrades can require a high initial investment and may not be an option for renters or those without access to charging stations.

However, that doesn’t mean that meaningful action can’t be taken.  “A simple and low-cost way to reduce carbon pollution and help green our local energy grid is to switch your power supply to a 100% renewable, local option,” says Mariel Marchand, Power Supply Planner for the Cape Light Compact.

Tracking clean energy

The electricity that powers our homes and businesses can be a big contributor to climate change – electricity production contributed 25% of 2020 U.S. greenhouse gas emissions, according to the Environmental Protection Agency. Electricity’s environmental impact depends on its source, but that’s not always easy to track.

The electricity we use is generated by a variety of sources including fossil fuel-based sources like natural gas (the largest source of New England’s electricity in 2021), as well as renewable sources like solar. Electricity from the different types of generators mixes once it enters the power grid, making it impossible to distinguish where those electrons come from.

Therefore, to track renewable energy, we account for it at the source using renewable energy certificates, or RECs. One REC is generated for every 1,000 kWh of renewable energy produced by a qualifying resource. There are many different types of RECs – the type depends on factors such as the source and location of the generating facility.  National RECs represent renewable energy generated across the U.S., while Class 1 RECs are generated by renewable energy resources located in New England.

Choosing renewable energy as an electric customer

Electric customers can have their electricity usage matched with RECs by opting into a renewable power supply program. Customers on Cape Cod and Martha’s Vineyard can do this through Cape Light Compact, an energy services organization operated by the towns on Cape Cod and Martha’s Vineyard. Cape Light Compact’s mission is to serve the electric customers of the region by delivering energy efficiency programs, consumer advocacy and a renewable and competitive power supply product.

Over 70% of Cape and Vineyard electric customers participate in Cape Light Compact’s power supply program. The Compact offers three power supply options: standard power supply, CLC Local Green 50 and CLC Local Green 100.

To check if you are a Cape Light Compact power supply customer, look at your electric bill. If you see “NextEra Energy Services” next to supplier, you are participating in the Compact’s program. NextEra is the power supplier that the Compact has contracted with to provide power supply services.

In addition to offering stable rates and transparent terms, the Compact matches power supply customers’ annual electricity usage above the mandated state requirements with national RECs, making its power supply 100% renewable.

The Compact’s standard power supply program matches customers’ energy primarily with national RECs, which can come from renewable power generated anywhere in the country. This allows them to keep rates cost competitive – frequently lower than the local utility’s basic power supply rate – while supporting renewable energy.

The Compact’s two other power supply options, CLC Local Green 50 and CLC Local Green 100, match either 50% or 100% of a customer’s electricity use with Class 1 RECs, which are those RECs that come from renewable power generated locally in New England.

RECs generated by solar photovoltaic systems like the one above are used to match customers’ electricity usage.

Why local makes a difference

The purchase of Class 1 RECs builds local demand for renewable energy, signaling to the market that customers want clean energy. It also creates an additional revenue source for renewable power projects in New England, helping more local renewable energy projects to get built. These projects help create energy resiliency in New England and bring with them local, clean energy jobs.

The lowest-cost national RECs often originate in areas of the country where there is a lot of renewable energy but not much market demand for RECs. That large supply combined with low demand makes them inexpensive, but also means they make a smaller contribution to the growth of renewable power.

By purchasing Class 1 RECs, CLC Local Green customers incentivize more renewable energy development in New England, help speed up our transition to clean energy and protect our region against the impacts of climate change. The centerpiece of CLC Local Green is several rooftop solar installations located on Cape Cod and Martha’s Vineyard that were installed in 2010 through the Cape and Vineyard Electric Cooperative.

 “The cost of choosing CLC Local Green is just a couple cents per kilowatt hour more than our standard rate,” explains Marchand – 1.3 cents more for CLC Local Green 50; 3.6 cents more for CLC Local Green 100 – “but when we combine all the customer demand together, it has a big impact.”

The Compact’s calculator at CapeLightCompact.org/clcgreen can help estimate how much enrollment in Local Green will add to your electricity bill. And the premium on CLC Local Green is tax-deductible if you itemize your deductions.

“Choosing CLC Local Green is an effective way to support a clean energy future with minimal personal time and investment required,” Marchand says. Cape Cod and Martha’s Vineyard residents and businesses are all eligible for CLC Local Green and can sign up to promote the growth of local renewable energy resources, bringing clean energy jobs to New England and building a resilient energy future.

To learn more and sign up for one of Cape Light Compact’s Local Green power supply programs, visit CapeLightCompact.org/clcgreen or call 1-800-381-9192.



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