Purchasing green electricity in Europe

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1 DEEP project Purchasing green electricity in Europe Barcelona, 21 September 2006 Peter Defranceschi ICLEI, Sustainable Procurement team

2 The DEEP Project DEEP: Dissemination of Energy Efficiency Measures in the Public Buildings Sector Supported by the Intelligent Energy for Europe Programme of the European Commission running from Project co-ordinator: ICLEI Project partners: Auxilia, France Ecoserveis, Spain Interuniversity Research Centre (IFZ), Austria EPTA, Greece Università di Reggio Calabria, Italy Diputació de Barcelona, Spain Provincia di Cremona, Italy TEDKNA, Greece Växjöhem, Sweden ESD, UK

3 DEEP Project overview To promote the opportunities in improving energy efficiency through high environmental standards for public office buildings To develop new and review existing key purchasing criteria with a view to latest market developments for green electricity, building materials, and energy performance. To apply the criteria in public authorities throughout Europe through Procura +, ICLEI s Sustainable Procurement Campaign

4 Aim of green procurement criteria FIVE fundamental needs to balance: 1 Real environmental improvement 2 Applicable across Europe 3 Easy-to-use and practicable for procurers 4 Legally valid and possible to verify compliance 5 Realistic must be possible for the market to meet the demands

5 Green electricity procurement Public authorities: 6-7% of European electricity consumption RELIEF project results - if all European public authorities purchased green electricity it would lead already to 18% of Kyoto commitments Liberalisation of European Liberalisation of European energy markets provides new opportunities for purchasing green electricity

6 Supply & labelling of green electricity Increasing number of green options offered by traditional electricity suppliers Growing number of supplier of only green electricity Many national labels, certifying green electricity supply EUGENE set up to standardise the definition of true green electricity across Europe, and encourage additionality - certifies labels

7 Procuring green electricity in practice Challenges in tendering for green electricity How to define green electricity? How to verify compliance with standards set? How to ensure no doubleselling? How to encourage additionality

8 Green electricity in tenders Technical specification A a) At least 50% of the supplied electricity must come from renewable energy sources (RES-E) Eligible sources: wind; geothermal, solar, biomass (according to EUGENE Standard), Hydro (not more than 25%), and renewable CHP Verification: 1 - Credible independent third party (Guarantees of Origin according to RES-E Directive if possible) Alternatively, tradable certificates 2 - In addition, verification that the specification and award criteria are met. This may include ecolabel certification.

9 Green electricity in tenders Technical specification B b) 30% of supplied RES-E must be from new renewable plants. Verification: The supplier must provide a declaration stating that this criteria is met.

10 Green electricity in tenders Award criteria 1 Bonus points for every additional XX% of the total renewable electricity supplied. 2 Bonus points for every additional XX% of the electricity supplied from new renewable plants. 3 Bonus points for tenderers offering efficiency improvement measures/management to the contracting authority. 4 Bonus points for hydro meeting EUGENE criteria 5 Bonus points are given for renewable electricity additional to the national support scheme.

11 Green electricity in tenders Further recommendations Adopt political commitment at municipal level in view of the green electricity tender process. To support small green electricity suppliers through tenders could be divided in partial lots Additional points if total power mix supplied does not contain nuclear energy Awareness raising events / campaign on energy saving etc.

12 Further information DEEP Website: