Procurement Principles
The following set of market principles drawn from eight sets of principles, cited below, are presented to guide discussions with Governments, companies, and supporting NGOs to achieve the shared clean energy procurement aspirations.
i. Foster cost competitive and efficient markets:
Market structures and policies that do not disadvantage clean energy, allow clean energy to be cost competitive, support competitive pricing, and enable buyers of all sizes to efficiently transact in standardized ways.
Create a level playing field on which clean energy competes fairly with fossil-fuel energy and reflects the cost-competitiveness of clean energy [1]
Develop large, transparent wholesale markets that facilitate price transparency and direct participation [6]
Facilitate mechanisms to increase retail competition which can result in a greater number of options for end-use customers
(often at competitive prices) [7]
ii. Create an enabling policy landscape:
Enable procurement with predictable and transparent rules that incentivizes long term engagement
Create opportunities to work with utilities and regulators to expand choices for buying clean energy [2,3]
Remove regulatory and administrative barriers to corporate clean energy sourcing [1,5]
Support predictable investment decisions through predictability in market rules [4]
Ensure policies do not inhibit market development and the ability of corporations to make clear claims about purchases [6]
Enable direct access for large purchasers through bilateral contracts or procurement through third-parties where feasible [6]
Collaborate with peers in the clean energy industry and other companies with large clean energy investments, as well as
workers and communities, to rapidly adopt and improve human rights standards across the clean energy sector [8]
iii. Implement robust environmental attribute certificate (EAC) system:
Credible and transparent system, with good accounting, that ensures additionality and enables buyers to take credit for clean energy procurement
Support a credible and transparent system for issuing, tracking, and certifying competitively priced EACs [1]
Ensure that ownership of EACs under various sourcing models or other programs is clear and prevents double counting
within the energy consumer community [2,7]
iv. Support grid infrastructure improvements & grid policies:
Resilience and ability to get power to site (including wheeling) and future proofing
Provide a clear and stable mechanism for on-site and off-site systems to feed excess electricity to the grid – preferably with priority dispatch for clean energy. Evaluate potential system size limitations [7]
Enable mechanism that allows for the transport of electricity from off-site generation to the place of consumption [7]
Establish efficient interconnection and permitting practices [7]
Eliminate barriers to grid access or grid interconnection and permitting to enable feasible on-site interconnection [6]
Ensure ability to procure clean energy without adversely impacting other rate payers [2]
Ensure the grid is designed, and able, to scale and accept future clean energy generation [4]
These principles were compiled from the following sources:
CEBA Renewable Energy Buyer Organized Wholesale Market Design Principles
NREL Policies for Enabling Corporate Sourcing of Renewable Energy Internationally
IRENA Corporate Sourcing of Renewables: Market and Industry Trends
Business and Human Rights Resource Center, Renewable Energy & Human Rights Benchmark