Issued by:
Pembina Institute
Objective of the project
To promote the development of low-impact renewable energy, while also fundraising for its advocacy activities, the Pembina Institute proposes to retail green power certificates to companies, institutions and individuals. These certificates will, at a minimum, originate from an EcoLogo-certified electricity generation facility, or will meet Green Leaf? technical requirements for electricity generation facilities.
Intent and outcome of this Request for Proposal (RFP)
The intent of this RFP is to seek proposals from existing generators of certified low-impact renewable electricity to work with the Pembina Institute to market Green Certificates (GC).
Based on the proposals we receive, we will select one power producer with whom to enter into a partnership agreement for a period of time to be negotiated. This will result in a unique private-sector-NGO collaboration to market low-impact renewable energy.
Benefits for the selected power producer
We anticipate that this project will offer the following benefits to the selected power producer:
- Additional revenue: the selected partner will receive additional revenue for low-impact renewable electricity produced through the sale of certificates
- Brand building/enhancement: selling green certificates in conjunction with a nationally recognized NGO will help the power producer build strong brand recognition in the emerging Canadian green power market
- Alignment with a nationally recognized environmental NGO: marketing green certificates in collaboration with the Pembina Institute will demonstrate the power producer's alignment with environmental priorities and directions. It will also demonstrate the Pembina Institute's "endorsement" of the product
- Increased consumer awareness: One of the Pembina Institute's strengths is building public awareness of energy-related environmental issues and opportunities. Through this partnership, consumer awareness of the green certificate product, and of the power producer, will be significantly enhanced.
Benefits for the Pembina Institute
The Pembina Institute will benefit from this venture as a fund-raising initiative. This project is in line with the organization's values and objectives to increase the consumption and production of low-impact renewable energy in Canada.
The Pembina Institute also seeks to gain on-the-ground marketing experience of low-impact renewable electricity for the purpose of advancing its understanding of the policy and market barriers to increased renewable energy use.
Background on the Pembina Institute
The Pembina Institute is an independent non-profit research and policy organization that develops and promotes progressive public policy and provides leading-edge sustainability consulting services. Since our incorporation in 1985, we have established a solid reputation in the areas of energy and environment, environmental economics, and sustainable resource management. In these broad areas, our research and analysis integrates expertise from a number of disciplines, including economics, ecological science, engineering, politics, and education. A multi-disciplinary approach enables us to catalyze action by bringing diverse interests together to find creative solutions. The Pembina Institute
- participates in multi-stakeholder committees and projects concerning sustainable development, including the development of renewable energies;
- advocates on behalf of the environment and the public interest at public hearings and other processes;
- provides consulting services to government agencies, First Nations, NGOs, and corporations; and
- carries out a variety of environmental education initiatives.
Today, the Pembina Institute sees an opportunity to "walk the talk" by promoting Green Certificates. This product is directly in line with our belief that we need to develop a more sustainable world. At the same time, promoting these certificates will enable us to raise funds to help meet our own financial sustainability goals.
General Definition of Green Certificates
For the purpose of this project, we define Green Certificates based on the Green Leaf™ Tradeable Renewable Electricity Certificate (TRC) definition:
...an authorized electronic or paper representation of the environmental attributes associated with the generation of defined amounts of renewable low-impact electricity from an approved electricity generation facility(s). TRCs allow the environmental, social and economic attributes of the electricity to be separated from the electricity itself, and passed on or sold as a separate product. For the purposes of this Green Leaf? TRCs Program Standard, a TRC only represents the environmental attributes associated with the offsetting of null electricity from the grid.
For the purpose of this project, one TRC will be equivalent to one Green Certificate. One Green Certificate represents the environmental, social and economic attributes associated with the generation of one MWh generated from a certified low-impact electricity generation facility.
Retailing of Green Certificates
The Pembina Institute will retail Green Certificates clearly identified as coming from the selected supplier.
As such, the consumer could receive a non-negotiable (i.e., not for resale) certificate confirming they own green certificates that will be retired on their behalf at the end of the year. The consumer could also receive a sticker and/or an information package on the provider of the electricity. They could eventually have access to a Web Cam directed at the electricity generation facility, establishing a "link" between the buyer and the source of electricity generation. We will work closely with the selected supplier to design and implement the most effective service package for the consumer.
Anticipated clientele
We anticipate marketing to the following groups:
- Institutions and companies
We will contact institutions and companies that have been identified through market research as environmentally friendly or innovative. These may include big-box retailers, financial institutions, restaurant sector businesses, and retailers. - Individuals
We will contact individuals primarily through company-sponsored employee programs and through the Pembina Institute's network and direct mail campaign.
Pricing set-up and financial arrangements
For the Pembina Institute, this is a fundraising initiative. At this time the Pembina Institute is inviting power producers to enter into discussions to establish a pricing that will ensure us a sustainable source of revenue while also helping to cover up-front marketing costs.
Selection criteria
Generators of Green Certificates that meet the following criteria or are willing to undertake the following commitments are invited to submit a proposal of interest to the Pembina Institute:
Contact:
Sylvie Boustie
Suite 517, 604 1st Street SW
Calgary, AB
T2P 1M7
Phone: 403-269-3344 ext. 117
Fax: 403-268-3377
e-mail: sylvieb@pembina.org
Green Certificates origin
Green Certificates will be issued from a Type III facility, as defined by the Environmental Choice Program EcoLogo for Renewable Low-Impact Electricity, or from a Level A facility, as defined by the Green Leaf? Tradeable Renewable Electricity Certificate (i.e., facility that began generating electricity on or after April 1, 2001).
Qualifying electrical energy sources are as per the Environmental Choice Program (ECP) definition1 with the following additional requirements:
- For biomass and biogas power projects, we require that the power plant produce no more air emissions per unit output than the most efficient combustion technology available on the market. This will ensure that local air quality impacts are minimized. We will work with the generator to assess the net life-cycle impact of their plant, incorporating cogeneration and waste diversion benefits (if applicable), and will compare that against the life-cycle impacts of high efficiency natural gas turbines or other best available technologies.
- For hydroelectricity projects, we require that the plant meet the criterion listed in the December, 2001 draft ECP Guidelines —- "as a maximum, the plant causes as much water to flow out of the head pond as is received in any 48-hour period."
Auditing and traceability
The supplier agrees to undertake an annual audit to demonstrate to the Pembina Institute the availability and uniqueness of the Green Certificates (i.e., no double counting), while demonstrating their traceability and retirement on behalf of the final consumer on due time. The auditor has to be reputable and acceptable to the Pembina Institute. The Green Leaf™ TRC program is recommended.
Additional selection criteria
In addition to the above criteria, we will consider the following additional criteria in our selection:
- To maintain its reputation as an independent ENGO, the Pembina Institute requires that the partner power producer be of sound reputation and incorporate sustainable business practices.
- As a value-driven social change organization, the Pembina Institute requires that the partner share similar business and ethical values.
- The Pembina Institute will favour the proposal offering the best balance between risk and financial return for the Pembina Institute. We will bring to the partnership intellectual capital, creativity, and a national reputation, rather than significant capital dollars.
1 Definition is: "Wind, solar and photovoltaic, low-impact water, biomass and biogas (including landfill sites, sewage treatment plants and anaerobic digestion organic waste processing facilities).
Contract duration
The duration of the contract is negotiable.
Evaluation of submissions
Pembina will enter into negotiations with proponents who have submitted a proposal that meets the selection criteria described above. In this first phase, only one proponent will be retained.
Proposal content
Proposals submitted for consideration should include the following information:
- Company background, history, and vision;
- Overview of the low-impact renewable energy facilities owned and operated;
- Overview of the low-impact renewable energy facilities owned and operated;
- Suggestions for forming a successful partnership with the Pembina Institute, including a description of the preferred roles and responsibilities of each party;
- A description of how you see the "partnership" working financially with respect to
- Marketing start-up costs and launch;
- On-going marketing and administration costs;
- Revenue sharing from sales.
Deadline for submitting proposals
Proposals must be submitted by April 22nd, 2003, either by mail, fax or e-mail. Please send to the attention of
Sylvie Boustie
Suite 517
604 — 1st Street SW
Calgary AB
Canada T2P 1M7
Tel: 403-269-3344 ext. 117
Fax: 403-269-3377
e-mail: sylvieb@pembina.org
