Designing a voluntary green electricity program under mandatory legislation

ABSTRACT

Green electricity (GE), the electricity generated from renewable energy, is important for the stabilization of global climate change. A distinct policy to promote GE development is voluntary GE program, which emphasizes the participation of consumers and reduces government subsidy on renewable energy. This study discusses a voluntary GE program to work with mandatory legislation. With a proper design, cooperation between these two systems can create the additional benefit of the “leverage effect,” resulting in a smaller burden on the public from the mandatory obligation, yet still achieving the mandatory goals. This study clarifies the principal factors in designing a voluntary GE program and provides the determination method for deciding the sale price, which is the most challenging factor for the success of the program.

KEYWORDS:

• Energy policy
• green electricity
• renewable energy
• voluntary program