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It is surprisingly easy to leave yourself open to claims of Greenwashing!

Spinning wind power

Photo credit Doxi

Companies need to take a lot of care when making Green claims. The whole Green energy space is massively complex and it is surprisingly easy to leave yourself open to claims of Greenwashing.

What do I mean?

Well, take the Irish energy sector, for example. Anyone who generates electricity in Ireland, which is to be distributed on the grid, is required to sell that power into the wholesale pool – the Single Energy Market (SEM).

Then any retailer who wishes to sell that power to businesses or residential customers, buys the electricity from the pool and sells to their customer base.

Now if you are grid connected in Ireland for your electricity supply (as most organisations are) you get your power from this pool.

Can you see where I am going with this?

Most electricity companies in Ireland do generation as well as retail. Some of them have a significant portfolio of renewable resources (chiefly wind). However, because of the structure of the market, they can’t sell this power directly to consumers, it has to go to the SEM pool first.

When the electricity retailers sell electricity, they have to purchase it from the SEM pool to sell to their customers. Because all electricity sold in Ireland comes from the same SEM pool, everyone has the same percentage of renewables in their supply (unless they have a private supply).

What this means in effect is that you can’t selectively buy renewable electricity in Ireland.

If you see companies saying that their Irish operations are “running on almost 90 percent wind power”, for example, they are either ill-informed, or they are Greenwashing.

If you can’t selectively purchase renewable electricity, what can you do to reduce the carbon footprint of your energy consumption?

Well, the best thing to do then would be to move your loads to times when the percentage of renewable sources in the pool is highest! Any company committing to doing that would be making a bona fide Green statement.

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The financial markets might be in trouble but renewables are seeing boom times!

renewable energy

Photo Credit pseudorlaya

A couple of interesting announcements were made in Ireland in the last week.

On the 8th of Oct., Eirgrid, the Irish grid operator launched their Grid25 strategy (pdf warning). In the strategy document they announced they are spending €4 billion reinforcing the Irish distribution grid in the expectation of a 60% rise in electricity usage.

The Irish Environment Minister, John Gormley in his Carbon Budget announced that the Irish government is going to target that 40% of electricity consumed in Ireland would be from renewable sources by 2020. This is an increase over the previously stated, already ambitious target, of 33% from renewables.

Ireland had an average electrical demand of 3.2GW in 2007. A 60% increase means an average consumption of 5GW by 2025 and an average of 4.5GW in 2020. This is the date the government has set as its target of 40% from renewables.

40% of 4.5GW means that Ireland will average 1.8GW from renewables in 2020. Assuming that this will come from wind (there is no other viable renewable energy source in Ireland), this will require 5.4GW of installed wind capacity.

Ireland currently has 1GW of installed wind capacity so to hit the target it needs 4.4GW of wind farms to be built.

That’s 366MW per annum or just over 1MW every day until 2020! A 1MW wind turbine would be a significant structure costing in excess of €1m.

So the Irish government has set as a target the sourcing of 1MW extra from wind energy every day for the next 12 years?

I also spotted today that StrategyEye in their new quarterly report are reporting that investment in the Cleantech sector is up 50% this quarter, compared to the first quarter of 2008.

The financial markets might be in trouble but renewables are definitely seeing boom times!