Energy procurement

The Clean Coalition advocates for pragmatic and proven energy policies that build upon global best practices. We promote policies based on analysis and real-world experience — not on partisan politics.

When it comes to energy procurement, we believe that the wholesale distributed generation market is the best way to quickly and cost-effectively bring renewable energy online. We support the following principles of effective design:

  • Energy should be bought and sold using standard, fixed-price, long-term contracts that lower risks and transaction costs.
  • A transparent, market-responsive program should set fixed energy prices. They should not be set via a secretive solicitation process. Transparency reduces unviable low-ball bids, encourages broader market participation, and facilitates fast development of clean local energy projects.
  • Decisions about which energy to buy must recognize the full value of clean local energy, as well as the full costs of traditional energy generated far away.
    • Transmission-related costs must be factored into procurement decisions. The cost of transmitting energy from a remote plant can make up nearly 25% of a customer’s energy bill. Energy generated close to customers avoids these costs.
    • Projects that can come online quickly should get preference. Local energy projects often fill the bill.

The Clean Coalition works with utilities and communities across the country to design and implement effective procurement programs. Learn how to start a CLEAN Program. For more information on energy procurement, visit our Resource Hub.