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Background
Since 2000, the publicly owned energy supplier of Heidelberg (Stadtwerke Heidelberg) has been offering its clients the chance to procure electricity from renewable energy sources (RES) under the offer called "FOX Energreen".
The City of Heidelberg chose this option in March 2001, in order to cover 25% of its properties' electricity demand. An Electricity framework agreement was concluded between the City and the Public Utility, with a validity of one year at first, and the option to extend it to four more years after that.
As average electricity prices were decreasing at that time, there was no increase in cost. Even with Fox Energreen's prices being higher than those of conventional electricity suppliers, the City's electricity costs were still less in 2001 than two to three years earlier.
Thanks to procurement of 25% green electricity for the municipal administrations, (about 7,000,000 kilowatt hours (kWh), which corresponds to the power consumption of all schools and nurseries in Heidelberg), the City has avoided the production of about 4,400 Tons CO2 per year.
The Stadtwerke Heidelberg have invested 80% of the additional charge for supplying green electricity into the development of new RES generating capacity. To demonstrate this, they have engaged the ASEW association in Cologne (working group on energy and water conservation of German municipal utilities). The ASEW verifies all existing renewable electricity production capacities belonging to the Public Utilities and makes sure that no more Energreen electricity is sold than it is possible to generate - i.e. the green electricity is not sold twice.
Through the procurement of green electricity, 16 photovoltaic systems have already been installed (totalling 305 kWh), as well as one biogas district heating plant. Five more photovoltaic systems are planned. The additional charge from the sale of green electricity will make it possible to cover the running costs of this equipment for the coming 20 years. The remaining 20% of received additional charges for green electricity are allowing the funding of nation-wide promotion campaigns for the Energreen electricity offer and for certification. Energreen has received the "Gold" award of the German Green Electricity Label.
This is one of a number of case studies on Green Procurement available on the Procura+ website
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