How green energy plans work
Green energy plans are long-term commitments that support renewable electricity generation in Alberta. Signing up for a green energy plan funds renewable energy projects and adds more clean power to Alberta’s grid.
Signing up does not guarantee that the electricity delivered to a home, farm, or business will come directly from renewable sources. Instead, purchases support renewable generation through carbon offsets and Renewable Energy Certificates (RECs).
When renewable generators produce electricity, they inject it into Alberta's power grid along with conventional sources. Green energy plans allow consumers to buy environmental attributes linked to that renewable power. These attributes come in two forms:
Carbon offsets
Carbon offsets represent a verified reduction in greenhouse gas emissions. One offset equals one tonne of carbon dioxide equivalent (CO₂e) that was prevented from entering the atmosphere. Offsets are created by projects that reduce emissions, such as renewable energy generation, methane capture, or energy efficiency improvements. When consumers purchase a green energy plan that includes offsets, these projects compensate for emissions elsewhere.
Renewable Energy Certificates (RECs)
A REC represents proof that one megawatt-hour of renewable electricity was generated and added to the grid. When renewable generators produce electricity, they can sell RECs to organizations or individuals who want to support clean energy. Buying RECs helps increase demand for renewable generation and displaces higher-emission sources on the grid.
These certificates and offsets can come from Alberta, other Canadian provinces, or the United States. They do not change the physical electricity delivered to a home or business, but they ensure consumer purchases supports renewable energy development.
Before signing a contract
Every retailer’s green energy plan is different. Some plans include a fixed monthly fee, while others charge based on energy use. Consumers should ensure they:
- Review what the plan offers and how it supports renewable energy
- Understand whether it includes carbon offsets, RECs, or both
- Understand how often and how credits are may be applied to bills
- Compare costs using the Cost Comparison Tool
