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EcoElec trons Renewable Energy

energy

Empoweringeveryone

withrenewable

Summary

Renewable Energy or Green Power is the solution to some major challenges like cli-mate change, dependency on foreign oil and sustainable economic development that face us today. Consumers have become sophisticated enough to realize this and they have started to support only those businesses that have sustainability built into their core values. Getting your organization green powered is thus not only the right thing to do but it makes sense from a business standpoint. Businesses are also realizing this as can be seen from the dramatic increase over the last few years in renewable energy purchases made specifically by commercial parties.

Due to deregulation of the electricity markets in select states, it is now possible for organizations in such states to run on green power while they cut down on energy costs. This whitepaper gives the reader some background on green power, its benefits to business and how an organization in deregulated electricity markets can go green while realizing energy savings at the same time.

Green power or renewable electricity is environmentally friendly electricity produced from solar, wind, geothermal, biomass or small hydro. It has low impact on human, animal and ecosystem health.

There are three ways of running on green power.

Install an on-site system like solar panels or wind turbines: This option can be expensive and requires spacial, opera tional and maintenance considerations.

Enroll in a green power program offered by a local utility: While this option is simpler and easier than on-site installation, the following option is usually the most cost effective.

Certified Renewable Energy Credits: Renewable energy credits are a simple and cost effective way to address emissions from electricity consumption.

One Renewable Energy Credit (or REC) represents proof that 1 Megawatt-Hour of renewable electricity was injected into the grid on your behalf. Electricity is like a tub of water with dirty and clean water (dirty and clean electricity) flowing in from each end and the combination of the two flowing out the other. It is impossible to separate the dirty electricity from the clean electricity once injected into the grid just like how it is impossible to separate dirty and clean water once mixed together. What is important is that clean electricity gets injected into the grid. When this happens the dirty electricity gets backed out and emissions are reduced. An organization needs to purchase Renewable Energy Credits in addition to the brown power it consumes to run on green power.The following picture illustrates.

Green Power

What are Renewable Energy Credits?

How can your organization run on green power?

What is green power?

Green Power

Consumers today want companies to adopt sustainable initiatives, according to our research (http://www.ecoelectrons.com/green-business-resources/research-survey/) and research by Center for Resource Solutions ( http://www.resource-solutions.org/pressreleases/2009/062309.htm) Green power will

a) Increase leads coming in through your marketing funnel. Each month about 100,000 people search for ‘green companies’ just on Google.

b) Increase customer satisfaction. The research shows that consumers are more satisfied doing business with sustainable companies. Consumers would also have a positive brand image of a sustainable company.

c) Emission Reduction: Green power reduces your organization’s environmental footprint significantly.

d) Certification: Your organization becomes a certified EPA (Environmental Protection Agency) Green Power Partner. If eligible, the Green-e logo (http://www.ecoelectrons.com/green-e-and-energy-star/) can be used on product packaging and marketing communications.

Why should you Green Power your organization?

Who is buying Green Power?

Case study for green power : Codero

Codero is building a better, greener web experience for its company and its customers. Headquartered in Overland Park, Kansas, Codero knows small- to medium-sized businesses depend on hosting services and products to help manage growth for their organizations. Codero also knowsits community of customers, designers, bloggers, and web enthusiasts are in search of sustain-able options. Understanding these desires, Codero is committed to building dedicated server solutions and powering them with 100 percent certified renewable energy.

Codero made the business decision to change to a green hosting provider by matching their energy use with renewable en-ergy. They first considered on-site renewable energy generation, however the installation would not have generated the full amount of electricity it takes to power the data centers.

After thoroughly evaluating all options to use renewable energy, Codero chose Green-e Energy Certified renewable energy certificates (RECs) and joined Green-e Marketplace. Codero’s purchase of 12,500 MWh of certified RECs from EcoElectrons means every ded-icated server supporting Codero’s customers is matched with Green-e Certified energy. “The Green-e certification gives our customers confidence in our commitment to being eco-friendly and verifies the product ownership,” said Ryan Elledge, COO of Codero. Today as a Green-e Marketplace participant Codero displays the Green-e logo, the national symbol for renewable energy excellence to identify the company as a leader in green solutions.

Specializing in dedicated and managed hosting services for small to medium sized businesses, Codero offers advanced email, eCommerce, security and networking solutions. Codero has extended its mission to be a sustainable business to include recycling of power supplies, motherboards, RAM, and hard drives. Codero is also a partner of the EPA’s Green Pow-er Partnership programe and a member of the Leadership Club. To learn more about Codero’s environmental initiatives, visit www.codero.com/company/green-hosting.

Codero is building a better,

greener web experience for its

company and its customers.

Challenge

Solution

About Codero

How can your organization cut energy cost while going green at the same

In deregulated electricity markets, an organization can have multiple electricity suppliers bid for its business through either a Request for Proposal (RFP) process or an auction process. By design these processes get suppliers to compete against each other thus driving down the price of electricity. EcoElectrons can help your organization achieve a highly competitive price by engaging multiple suppliers to compete for your business. So even though green power requires you to pay a premium for its added benefits, procuring it through EcoElectrons will mean that you pay less than what you currently do for brown power while going green at the same time.

Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces. Deregulation does not mean eliminating laws against fraud, but eliminating or reducing control of how business is done, there-by movings towards a free market. Electricity deregulation means choice. You are able to choose your supplier of electricity. Legislatures and public utility commissions of many states have opened retail competition for electricity supply.

Since the early days of the 20th century, the control of the energy industry rested with a large group of regional monopoly com-panies that were the solely responsible for electricity supply and delivery for the areas they served . Because of the importance of these services to the public, these utilities were heavily regulated by the government.

Since the mid-1990s, a number of states and provinces have passed legislation deregulating these electricity markets, allowing for competition in the industry. This means that customers in states and provinces that have undergone deregulation can now choose an alternative electricity provider (different from their utility) to seek competitive pricing and choose electricity products that make sense for their business.

Energy deregulation is very similar to the deregulated telephone industry, in which you may choose different companies for your long distance service, while your local phone company continues to maintain the lines you use. The transmission/distribution portion of your electric bill (the cost to get the power to you) is still provided by the utility, but you have the ability to shop for the best prices and services available to you in the market for supply or generation. If your business is located in one of the deregulated states or provinces shown below, energy cost savings could be easily achieved without any capital investment.

What is electricity deregulation?

Cut cost through Energy Procurement

a) Traditional Request for Proposal (RFP) Process: The traditional RFP process involves soliciting bids from large and reliable retail electricity suppliers. EcoElectrons will use its existing relationships and market expertise to obtain the lowest electricity price for your organization. Bids for multiple terms and green to brown power ratios will be obtained.

b) Auction Process: The auction process involves the use of online energy procurement platforms like the one developed by World Energy to connect energy suppliers with buyers. The auction process can have several advantages like supplier breadth and increased competition amongst suppliers over the traditional RFP process. Bids for multiple terms and green to brown power ratios will be obtained through the auction process as well.

Different types of energy procurement

There are two different ways of procuring electricity in deregulated markets:

The following map shows the states and provinces with deregulated electricity supply:

$0.12/ KWh , the organization

Energy Expenditure was

$1,200,000/Year

0.119 0.1180.116

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Price brought down to

$0.05/KWh by the auction

process, savings of nearly $700,000/Year within 15

minutes

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$/KW

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Reverse Auction Process for an organization with electricity consumption of

10,000,000 KWh/Year

St. Luke's Hospital & Health Network is a multi-hospital system affiliated with more than 1,200 doctors serving the greater Lehigh Valley, PA.St. Luke’s avoided more than $1 million in their annual electricity purchase costs through a competitive elec-tronic procurement reverse auction process.

St. Luke’s has not only procured power through World Energy Exchange® online platform, but has also procured 10 percent of its electricity from renewable energy sources. The health system will realize an annual 2,900 ton reduction of carbon dioxide.

Reverse auction

An online energy procurement platform uses a reverse auction process to drive down the price of electricity like the graph below illustrates.

Case study: St Luke’s Hospital achieving savings through reverse auction

“The reverse auction process enabled us to buy our electricity from renewable sources for the same price as the traditional electricity generated from fossil fuels” Larry Jennings, Director of Purchasing and Contracting at St. Luke’s

EcoElectrons Renewable Energy supplies corporations with green power or renewable energy through certified Re-newable Energy Credits. EcoElectrons injects green electricity into the electric grid on behalf of its customers. When green power is injected into the grid, a ‘Renewable Energy Credit’ is generated. Businesses purchase the Renewable Energy Credit in addition to the power they normally consume. Businesses get Green-e certified. Green-e is to green power what Energy Star is to energy efficiency. They also become a member of the prestigious US EPA Green Power Partnership. EPA and Green-e logos can then be used on marketing communications and product packaging. In deregulated electricity markets, EcoElectrons acts as an energy services company and helps clients drive down the price of electricity while making it green at the same time EcoElectrons is a channel partner of World Energy Exchange®.

World Energy Exchange,Inc (NASDAQ: XWES; TSX: XWE) is an energy management services firm dedicated to helping clients manage energy as a strategic asset. The Company was founded in 1996 and it operates online exchanges for electricity, natural gas and environmental commodities.

EcoElectrons Renewable EnergyUWO Research Park, 1086 Modeland RoadSarnia, ON, Canada-N7S 5A2Ph:248-876-3721Email:info@ecoelectrons.comwww.ecoelectrons.com

EcoElectrons Renewable Energy and World Exchange Energy

There is no upfront cost or commitment needed by your organization. EcoElectrons will work with you to identify your green power needs, energy procurement requirements and also on RFP Architecting. Multiple suppliers will then engage and compete for your business. Only when you are satisfied with one of the many supplier bids, you will move forward. Contact us to find out how much savings on energy you can realize while going green at the same time.

Path forward for your energy savings

Green-e Energy is the nation's leading independent consumer protection program for the sale of renewable energy and greenhouse gas reductions in the retail market. Green-e offers certification and verification of renewable energy and green-house gas mitigation products. It is a program of Center for Resource Solutions.

The United States Environmental Protection Green Power Partnership is a voluntary program that encour-ages organizations to buy green power as a way to reduce the environmental impacts associated with purchased electricity use.The Partnership currently has hundreds of partner organizations voluntarily purchasing billions of kilowatt-hours of green power annually. Partners include a wide variety of leading organizations such as Fortune 500 companies, small and medium sized businesses, local, state, federal governments, colleges and universities.