What is Green Electricity？
What is Green Electricity？
Green electricity refers to electricity that uses renewable energy such as wind energy, solar energy, hydropower, biomass energy and other non-fossil energy to generate electricity, and does not produce greenhouse gases such as carbon dioxide during the power generation process. Green electricity represents a clean and environmental friendly form of energy, and it is one of the key means to deal with climate change, reduce carbon emissions and achieve sustainable development.
Compared with traditional coal-fired power generation, green power has little negative impact on the environment. It not only reduces the dependence on limited fossil energy, but also effectively reduces the emissions of greenhouse gases and other harmful substances. With the development of technology, the cost of renewable energy such as wind power and photovoltaic power generation is also decreasing, which has become an important force to promote global energy transformation.
Economic Benefits of Green Electricity
A. Income from Direct Power Generation
Using renewable energy (such as solar energy, wind energy, water energy, etc.) to generate electricity, electricity sales are the most direct source of income for green power projects. Because the green power project depends on natural resources, the fuel cost is close to zero, and the operating cost of power generation enterprises is relatively low, which makes the unit power generation cost gradually decrease with the extension of equipment service life.
In some areas, due to the support of national policies, green power can enjoy higher on-grid tariff (or subsidy) than traditional thermal power. This means that by producing green electricity, power generation enterprises can obtain higher economic returns than traditional power generation enterprises. For example, wind farms or photovoltaic plants can make a profit by selling electricity to the power grid or directly to end users.
B. Green Electricity Certificate Trading
Green electricity certificate is the certification of renewable energy generation. By selling certificates, enterprises can get additional economic returns from green electricity. Green electricity certificates are mainly traded through the market mechanism, and enterprises or individuals in need can buy green certificates to prove that they support the development of renewable energy.
Through the certificate trading platform, power generation enterprises can sell the certificates corresponding to the green electricity they produce and obtain direct economic benefits. For example, if an enterprise sells renewable energy power for every megawatt hour produced in the green card trading market, it can obtain the corresponding green card income. This mechanism not only supports the market-oriented development of green electricity, but also brings extra profits to power generation enterprises.
C. Policy Subsidies and Incentives
In order to encourage the development of clean energy, many countries have set up various fiscal and tax preferential policies for renewable energy power generation projects. For example, the government provides renewable energy subsidies or low-interest loans to help reduce the initial construction costs of photovoltaic and wind power projects. In addition, green power projects can also obtain additional economic returns such as land use and construction subsidies through preferential policies.
D. Carbon Emissions Trading
The low-carbon emission characteristics of green power projects make them qualified to participate in the carbon emission trading market. Enterprises can obtain the certification of carbon emission reduction by producing green electricity and enter the carbon trading market for trading. The carbon trading market provides an additional source of income for green power projects, especially in the context of increasingly stringent global carbon emission reduction targets, and the increase in carbon trading prices may further enhance the income of green power enterprises.
There are various ways to obtain economic value through green electricity and green electricity certificate, including direct electricity sales, green certificate trading, policy subsidies, carbon trading, PPA contract signing and so on. As the global demand for green energy continues to grow, green electricity and green certificates are not only important tools to promote energy transformation, but also bring broad economic returns to participants. Through reasonable planning and operation, enterprises can maximize the economic benefits brought by green electricity and green certificate in the market-oriented mechanism, and also contribute to environmental protection and sustainable development.