Introduction
Grüner Strom Label (GSL), meaning “greener electricity” in German, was established and has been operated by seven non-governmental organizations since 1998. It established an independent review committee and label issuance standard with an aim to drive energy transition in Germany and facilitate eco-friendly energy use. GSL acts as an examiner for every link in energy supply chains to bridge the information gap.
At present, 75 electric utilities in Germany have obtained the GSL, most of which did it to fulfil customers’ needs or sponsors’ requirements. In 2017, about 10% of the 63 TWh of renewable energy trading in Germany obtained the renewable energy label, of which 1.16 TWh obtained the GSL, accounting for 1.8% of the whole.
Objective
To drive energy transition in Germany, promote eco-friendly energy use and bridge the information gap.
Grüner Strom Label acquisition
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A compliant energy source certificate: Renewable energy power requested for sale requires an energy source certificate from the power plant that generated the energy and the electricity should be produced in the same year as the certificate is issued.
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Exclusion of non-renewable energy sources: Power plants related to or having traded with nuclear or thermal power plants are not applicable.
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Externalities: The core concept of GSL is guaranteed investment. First-level power providers selling renewable energy electricity certified by the GSL will be required to invest in renewable energy promotion or electric vehicles every year to increase externalities. Power providers can invest in their own companies or other renewable energy projects in Germany which is approved and managed by GSL. Depending on the investment case, about 20% of the total construction cost will be raised from power providers using the label to project implementers.
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Eco-friendly requirements for renewable energy generation sites: Standards stricter than the German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz) are established to strike a balance between driving energy transition and the sustainable development of nature and society.
An eligibility review of the GSL will be conducted every two years.
Acquisition of Grüner Strom renewable energy certificates
Since the GSL is only for domestic power generators in Germany, the types of renewable energy certificates to obtain the label is not specified and it depends on the power generation side.
Organizations that recognize the Grüner Strom Label
- Bund
- EUROSOLAR
- NABU
- Deutscher Naturschutzring (DNR)
Sources
- Grüner Strom Label