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GROWING GREEN ELECTRICITY MARKET, CONSUMER DECEPTION AND STAGNATING ENERGY TRANSITION

The green electricity label guarantees additional investments in the expansion of renewable energies. Studies demonstrate benefits for the energy transition.
The green electricity label guarantees additional investments in the expansion of renewable energies. Studies demonstrate benefits for the energy transition.
Evaluation of the Grüner Strom-Label on the new green power market analysis of the Federal Environment Agency / Fake green power products deceive consumers and have no effect on the expansion of renewable energies

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Bonn, September 11, 2019 - The Federal Environment Agency (UBA) recently published its 'Market Analysis Green Electricity II'. In addition to the development of the green electricity market and its framework conditions, the perspectives of consumers* were also highlighted. An analysis by Grüner Strom Label e.V. shows: Supply and demand of electricity from renewable energies have increased significantly. However, the majority of the alleged green electricity products neither fulfill the expectations of consumers nor lead to an expansion of renewable energies. Green electricity tariffs with a concrete investment component, on the other hand, promote the energy transition, but are rarely offered.

"The study showed that most so-called green electricity products in Germany are based solely on guarantees of origin and do not provide any real environmental benefits," explains Dietmar Oeliger, Chairman of Grüner Strom Label e.V. "Consumers not only want to make their own energy supply sustainable by purchasing green electricity, but also want to promote the energy transition. In both points they are deceived with most green electricity products", Oeliger continues.

According to the UBA study, there are support mechanisms that promote the energy transition: The strongest additional benefits result from proven contributions to the expansion of renewable energies and energy efficiency measures [1].

Such a support concept with guaranteed investments is pursued by the Grüner Strom-Label. Every green electricity product certified with the green electricity label of the environmental associations guarantees: A fixed amount per kilowatt hour of green electricity is invested within two years in energy transition projects, such as photovoltaic systems, wind turbines, and energy efficiency, e-mobility, or educational measures. Before the project is implemented, both ecological and economic criteria are reviewed. In the last 20 years, more than 1,300 energy turnaround projects have been co-financed and implemented with around 65 million euros. The average funding rate is around one-fifth; the total investment amounts to over 360 million euros.

The UBA study was unable to confirm positive effects on the expansion of renewable energies through guarantees of origin alone. However, a large proportion of all green electricity products are based on this [2]. More than 60 percent of green electricity customers believe that they are contributing to the expansion of renewable energies through their green electricity purchases [3]. Just as many also find it important that their electricity provider itself invests in the energy transition [4, 5].

"People are willing to contribute to the energy transition and climate protection by purchasing green electricity. We no longer have time to let this great potential go unused, because climate change is already in full swing," explains Daniel Craffonara, Managing Director of Grüner Strom Label e.V. "Many energy providers need to radically redesign their green power products and actively promote the expansion of renewable energies. Because the ecological energy supply is a cornerstone for overcoming the climate crisis and there's no such thing as an Earth 2.0. That's why we need the energy transition, now."

Evidence:
[1] Federal Environment Agency (ed.) (08/16/2019): Market Analysis Green Electricity II; https://www.umweltbundesamt.de/publikationen/marktanalyse-oekostrom-ii, pages 36, 168.
[2] Federal Environment Agency (ed.) (Aug. 16, 2019): Market Analysis Green Electricity II; https://www.umweltbundesamt.de/publikationen/marktanalyse-oekostrom-ii, pages 33, 34.
[3] Federal Environment Agency (ed.) (08/16/2019): Market Analysis Green Electricity II; https://www.umweltbundesamt.de/publikationen/marktanalyse-oekostrom-ii, page 247.
[4] Federal Environment Agency (ed.) (16/08/2019): Market Analysis Green Electricity II; https://www.umweltbundesamt.de/publikationen/marktanalyse-oekostrom-ii, pages 252.
[5] Verbraucherzentrale Bundesverband e.V. (ed.) (21.12.2011): Verbraucher Erwartungen an Ökostrom und Konsequenzen für Ökostrom-Labelkriterien; https://www.vzbv.de/pressemitteilung/kein-durchblick-bei-oekostrom; page 18.

Keywords
Federal Environment Agency, market analysis green electricity, Grüner Strom-Label, energy transition, renewable energies, climate change, climate crisis

About Grüner Strom Label e.V.
The Grüner Strom Label e.V. certifies green energy products. The association awards two seals of approval for this purpose: the Grüner Strom-Label for green electricity with added value and the Grünes Gas-Label for environmentally compatible biogas. The association is backed by non-profit environmental and consumer associations and peace organizations, including NABU, BUND, EUROSOLAR and the Verbraucher Initiative. Grüner Storm-Label or Grünes Gas-Label are the only seals of approval for green electricity and biogas in Germany that are supported and recommended by leading environmental associations. www.gruenerstromlabel.de

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Gruener-Strom employee-Christian

Christian Knops

Green Gas Certification Manager

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GROWING GREEN ELECTRICITY MARKET, CONSUMER DECEPTION AND STAGNATING ENERGY TRANSITION

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