Studying the environmental impact of buildings, we cannot ignore the environmental footprint of their energy demand. According to the U.S. Department of Energy (DOE), 98 percent of our nation’s energy supply is generated from the combustion of fossil fuels resulting in the emission of 2,298 million metric tons of greenhouse gasses into the atmosphere per year—an unsustainable equation to say the least.

Recognizing this fact, the USGBC LEED standard strongly encourages renewable energy. This is nothing new to green building advocates, however, LEED professionals are often unaware of the most common mechanism behind purchasing green energy and the importance this mechanism has on spurring new renewable energy development in the United States.

Getting Technical

Ainsworth Wind Farm in Ainsworth, Neb. For every MWh of certified renewable energy fed into the grid, a corresponding REC is created.

Historically, utility-scale renewable energy generation like wind farms and solar arrays have been slow to come online for two reasons. First, until recently, the public health and environmental benefits of renewable energy have not been monetized. Consequently, there was little economic motivation for developers to invest in expensive renewable projects that ultimately produce commodity electricity. Secondly, once it’s fed onto the national grid, it’s impossible to track where the renewable energy is delivered, leaving grid-tied users no choice as to how the energy they use was produced.

To illustrate this point, it’s helpful to think of the national grid as a giant bathtub where “green” electrons and “dirty” electrons are flowing in like hot and cold water. Once the two sources blend, they form a warm hybrid and cannot be distinguished from their original parts.

Enter Renewable Energy Certificates (RECs). RECs solve these two problems by acting like a certified claim check that tracks each megawatt hour (MWh) of renewable energy produced. For every MWh of certified renewable energy fed into the grid, a corresponding REC is created. These claim checks are sold by the renewable energy producers on the open market much like carbon credits are sold on various global exchanges.

Like their carbon credit counterparts, REC purchasers can then attest to having supported a specific unit of energy going in to the grid, thereby offsetting the need for an equivalent amount of traditional energy and its associated greenhouse gases. Additionally, the extra money raised by the renewable energy providers through REC sales allows renewable energy producers to either offset the cost of their operations or invest in more renewable projects. This keeps renewable energy competitive in the marketplace.

RECs are the #1 mechanism used by companies in the U.S. today to purchase renewable energy, with purchases by Starbucks, FedEx, Kinko’s, HSBC Bank and Safeway. All of the 10 largest renewable energy purchasers in the country use RECs to meet most, if not all, of their renewable energy commitments.

Plugging In

Under the Energy and Atmosphere credit 6, the LEED standard awards points for meeting a specified portion of your energy demand through renewable energy for at least two years. RECs can either come “bundled” through a local utility or “unbundled” through reputable third-party REC providers like 3 Phases Energy. In both cases, RECs are purchased through a simple contract and can be traded across boundaries. Furthermore, because these are paper transactions, there are no meters or hardware to install, and you don’t need to change your current relationship with your utility provider. This is important for large-scale purchasers like Starbucks, for example, who purchased renewable energy for over 9,000 of their stores nationwide through one simple contract.

And, as with anything, it’s important to perform your due diligence. Make sure your RECs meet LEED standards, and that the RECs are Green-e Certified. Weigh your options, get multiple quotes, and ask questions!

Profile: 3 Phases Energy

By promoting and implementing solutions for LEED construction, business, government, non-profits and utilities through Renewable Energy Certificates (recs), onsite generation and green pricing support services, 3 Phases Energy acts as a one-stop shop for carbon reduction solutions in the creation of a cleaner, more renewable world. 3 Phases Energy’s commitment to the core value of practical idealism has made it the provider for 26 Fortune 500 global and U.S. companies, and the company is the clean energy supplier to 10 of the top 25 largest renewable energy purchasers in the U.S., and partner on numerous LEED projects, including adobe’s new headquarters in san jose, calif.

website: www.3phases.com.