Thursday, December 1, 2011

Voting with a Green Frog - Renewable Energy in Estonia


Estonian Energy has launched a very interesting new initiative in the pursuit of being more green named Green Energy (Roheline Energia). Though the terms and conditions mainly is protection of the trademark (a green frog, thus the illustration) the actual idea is very good! 

This is the deal: You choose to buy electricity from Eesti Energia at a slightly higher price (example: heating package: 10.86 EUR/kwh daytime and 6.83 EUR/kwh night time Green Energy versus standard 9.92 EUR/kwh daytime and 5.79 EUR/kwh night time for the same package, 1st November 2011). For the 9-15% extra on the bill Eesti Energia obligate itself to provide this amount of energy to your household using renewable energy sources (not including the trick of including firewood in that equation):
4. ORGANISATION OF GREEN ENERGY SALES
4.1 The Seller sells to the Buyer Green Energy, which is electricity generated in the Republic of Estonia from wind and hydro energy. Where the local generation capacity fluctuates or changes the Seller may sell renewable energy from other sources or generated in other countries as Green Energy
4.2 If the sales of Green Energy exceed the volumes of wind and hydro energy generated and purchased, the Seller shall not sign any new Green Energy contracts until additional wind and hydro energy sources become available.
OK, so a company is (finally) making renewable energy and selling it - so what?

The great thing is that you, the consumer, can choose! Basically you get the chance to vote with your electrical bill how important this is to you (if you can afford it). To me this is a door opened by Eesti Energia to see what people want and sell it. Clever!

I think these initiatives could and should spread to other sectors too - give the consumer a choice. If the balance tilt in favor of the majority demanding Green Energy (or other trademarks) then the politicians might one day even put on the needed penalties on polluting energy sources and reverse the funding picture presented above.

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