Renewable electricity

Chelsea Electricity Choice is being designed to increase the amount of renewable energy in the City’s electricity supply.

By replacing the burning of fossil fuels with the use of renewable energy resources such as solar and wind energy, Chelsea is working to:

  • Reduce greenhouse gases. Electricity generated from renewable sources, such as the sun and wind, does not create the greenhouse gases that cause climate change and does not pollute the air.
  • Support New England-based renewable energy projects. Chelsea will prioritize buying renewable energy from New England-based renewable energy projects. By creating additional demand for the electricity generated by those projects, Chelsea Electricity Choice will help to support existing projects and stimulate the development of additional projects.
  • Support local businesses and local jobs. Purchasing renewable energy from New England-based projects means supporting New England-based businesses and the jobs they provide to local communities.

What it means to buy renewable electricity

Unless you have a renewable energy system, such as solar panels, plugged directly into your home or office, you cannot purchase the specific electricity that is generated by a renewable energy project. The electricity flowing through the grid is a mix, and it includes electricity generated by renewable energy projects as well as those generated by fossil fuels, such as coal, oil, and gas, and other resources such as nuclear. The individual sources cannot be separated out at the level of the grid.

As a result, a separate system has been created to keep track of renewable electricity and to allow it to be bought and sold. That system tracks electricity put into the grid using renewable energy certificates, or RECs. Every time a renewable energy project puts 1 megawatt-hour of electricity into the grid, 1 REC is minted. That REC can then be sold. Purchasing a REC gives you, and no one else, the right to say you used the electricity from that renewable energy project.

Anyone who wishes to purchase renewable electricity must then purchase 2 things: they must purchase the electricity itself from the grid, and then they must also purchase RECs that equal the amount of electricity they use. (These two costs are often bundled together, and they are why renewable energy costs a bit more.) Whoever buys RECs has the right to say they used the electricity generated by the associated renewable energy projects. Those RECs are then retired so that they cannot be purchased by anyone else, and no one else can claim to have used that electricity.

Chelsea Electricity Choice will purchase RECs in order to integrate an increased amount of renewable electricity into the City’s electricity supply. No one else will be able to claim that they used the renewable electricity associated with the RECs that Chelsea buys.

The minimum amount of renewable electricity required by state law

Massachusetts state law requires that all electricity sold in the state must include a minimum amount of electricity generated by renewable sources and also by alternative, highly efficient sources that are not considered renewable. These requirements are known as the Renewable Portfolio Standard (RPS) and the Alternative Portfolio Standard (APS). The required amounts increase a little every year.

For 2020, Massachusetts requires a minimum of 16% from newer New England-based renewable energy projects (Massachusetts Class I RECs). The amount increases every year. Massachusetts also requires an additional amount from other types of renewable energy projects as well as alternative energy sources.  (For details, download the RPS and APS Minimum Standards through 2025 spreadsheet from the state’s Annual Compliance Information for Retail Electric Suppliers web page.)

Chelsea Electricity Choice will integrate additional renewable energy from New England-based projects above the minimum required by the state.