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In liberalized electricity markets, a wide variety of competing green electricity products are available to customers in addition to competition on tariff price. These voluntary products are marketed as environmentally friendly and claimed to support renewable energy production, new capacity building and offer other environmental benefits. We review products in the UK, Germany and Finland and find that they encompass different mechanisms such as renewable sourcing, green funds or carbon offsetting. The interface between voluntary markets and renewable energy policies is especially studied. We assess if voluntary products offer additional benefits and identify possible problems like double counting or merely re-marketing hydropower produced in existing plants. We analyse the transparency of products and their other sustainability impacts like energy efficiency improvements, local production, reduction of imported fuels or river restoration. We find that labels are important in increasing market transparency and setting criteria for green energy products.

Impacts of Green Electricity Markets in the United Kingdom, Germany and Finland