Solar, wind and other clean technologies are key to fighting climate change. But what do you do if you can’t put solar collectors on your home or buy an electric car or tap into your own windmill? RE Royalties has an answer: invest in “Green Bonds” that help finance investments in renewable energy generation, energy efficiency management and sustainable infrastructure.

When RE Royalties offered to sponsor a post here so we could all learn more about their unique approach to fighting climate change and protecting the planet, I immediately said “yes!” Here’s what I learned by interviewing electronically their chief operating office and co-founder, Peter Leighton, a veteran renewable energy executive with over 20 years of experience in the energy sector, including wind energy and more. This year Peter was named as an Honouree to Canada’s Clean50 for 2020.

In a nutshell, what is RE Royalties?

RE Royalties Ltd. is a specialty finance company created in 2016 that provides innovative financing for climate change solutions. It does so by using a “royalty financing model” to build and support renewable and clean energy projects and companies globally. In other words, it collects royalties from the companies it finances, and uses those royalties to build more projects.

With climate change a pressing issue globally, RE Royalties has become an important and innovative source of capital for renewable energy projects. Royalties is a publicly traded company on the TSX Venture Exchange under the symbol “RE,” It is the first to pioneer the royalty-financing model for renewable energy projects.

Green Bonds enable you to reduce your personal carbon footprint and directly fund the growing green economy.

Why invest in clean energy at all? It seems like the market for solar, wind and geothermal is taking off nicely on its own.

Renewables are currently the lowest cost source of new electricity generation in two-thirds of the world. But, we have many clients who still have trouble accessing low cost capital to help them deliver their renewable energy projects. Our goal is to help these clients build more renewable energy while delivering our investors with growth, yield and the opportunity to help the planet.

The fundamental vision of RE Royalties is to:
1. Help build a cleaner and more sustainable world; and
2. Generate a strong, economic long-term return for our investors.

Why do you need investment dollars when governments subsidize companies like yours so heavily?

This is an interesting question and I would like to answer it in three parts.

Firstly, RE Royalties does not receive any form of government subsidy, whatsoever. We pay tax, we pay our employees and our suppliers on a competitive market basis, and the capital we raise is priced based on investor choice.

Secondly, there is a broad perception that renewable energy is subsidized. I would agree that historically, government policy was necessary to develop the renewable energy industry and subsidies were required to get the monopolistic public utilities to encourage innovation. The fact is that today, renewable energy is the cheapest source of new electricity generation in two-thirds of the world and will be the cheapest everywhere by 2030.

Thirdly, I note that on your excellent website www.biggreenpurse.com, you state that you believe that “… the fastest, most effective way to stop polluters is by pressuring them in the marketplace.” I could not agree more!! I would turn your question around and ask it a different way. Why as a society, are we OK subsidizing the fossil fuel industry by not asking them to pay for the negative impact to the planet that they create?

Personally as a consumer, I am happy to pay a deposit fee to encourage me to recycle a pop bottle, or to pay an extra charge if I forget to take my knapsack to the grocery store and have to use a plastic bag. I am happy to pay for transit to get to work, if it is snowing and I cannot ride my bike. I am also happy to pay a premium for organic produce because I think that is better for my family and better for the global environment. In other words, I am already paying for the negative externalities associated with bottle production, plastic bag production, transportation, and industrial scale farming.

Our society has the opposite view of the fossil fuel industry. There is a groundswell of anti-carbon tax sentiment even though we know that global carbon emissions are causing climate change. Just ask the citizens of California, Washington and Oregon whether they would like to remove the subsidy that prevents the oil and gas industry from paying for their product’s negative externalities. This would be like me saying that I don’t want to pay the city for garbage pickup – that I would prefer to just throw it in the woods.

How risky are Green Bonds compared to other types of energy investments?

It is difficult to compare risk across investments unless you have a clear view into all of the details of each investment alternative, and a clear view of the investment risk horizon for each individual investor. The assessment of Green Bond risk depends on the following: the individual investor; the financial strength of the issuer; and the details (terms, conditions, covenants, etc.) of the offering.

RE Royalties Green Bond offering is different from others in the marketplace because the Bonds are senior-secured against the assets of RE Royalties Ltd. Think of this being like a car loan where the bank’s loan is fully secured against the asset, or car.

The RE Royalties Green Bond also pays a fixed annual rate of interest of 6%, paid on a quarterly basis for the life of the bond. This means that a potential investor knows exactly how much they will earn on this investment. Finally, the International Capital Markets Association oversee the Green Bond Principles governing the issuance of Green Bonds and this means that investors can be sure that the bond proceeds will be used only for truly green investments.

Would Green Bonds ever invest in nuclear power companies, given that some who are concerned about carbon see nuclear power as a solution?

Our investment mandate at RE Royalties would preclude us from using the proceeds of our Green Bond financing from investing in nuclear power companies.

Can Americans or Europeans or the Chinese invest, given that the company is based in Canada?

Yes, investors from the US, Europe or China can purchase our RE Royalties Green Bonds, but they will need to have a Canadian investment account to buy and hold the securities. Canadian securities regulations require a high degree of disclosure and transparency, so the fact that we are traded on the Canadian exchange may be an advantage for some foreign investors. The fact that we trade in Canadian dollars may also be some advantage to  US and foreign investors who are looking to increase their exposure to the Canadian dollar. Some investors in very low interest rate environments such as Europe or Japan may also find the 6% yield on our green bonds very attractive.

In addition to solar, wind and geothermal, are there other promising renewable technologies that Green Bonds might help boost?

Our vision is to create a cleaner future by investing in renewable and sustainable energy. We are agnostic to technology, meaning that we will support any technology. We like proven technology and we have a bias for operating projects. This is because we really like near term cash flow!

It is important to note that to meet our goal of helping to build a cleaner and more sustainable world, we are focusing on both renewable and sustainable energy. Put simply, the world’s carbon emissions are very broadly speaking, driven approximately one-third by electricity generation, approximately one-third by building heating and cooling, and approximately one-third by transportation. Currently we are focusing on the electricity generation piece, but we do see lots of opportunity to utilize our royalty financing product to advance projects in the energy efficiency and transportation sectors.

Is the 6% per annum interest rate guaranteed, regardless of how the economy (nationally and globally) performs?

Yes, the 6% interest rate is guaranteed for the term of the bond. There is no relationship between the interest rate and the performance of either the national or global economy.

What is the projected growth rate of the renewables economy over the next 5 to 10 years?

Globally, $289 billion was invested in renewable energy projects in 2018, according to the United Nations. This investment is expected to increase to $534 billion by 2030 according to the UN Environment Programme as of June 18, 2019.

You can learn more about investment opportunities with RE Royalties Green Bonds here.

The post RE Royalties Green Bonds Power Clean Energy appeared first on Big Green Purse.

Why Arcadia? Because they’ve come up with a unique way to connect you to renewable energy that doesn’t cost you a dime.

Watch this quick video.

Here’s How It Will Work for You

⇒ Go to Arcadia’s website and plug in your zip code.

⇒ Then, create a FREE, secure account by providing the name of your local utility, your account number, and how you prefer to pay for your electricity: by credit card or debit from your checking account.

Voilá! You have an account.

Beginning with your next billing cycle, your bill will be paid to the utility via Arcadia.

It will not cost you any more money to have Arcadia pay your bill than if you were paying it directly.

Meanwhile, Arcadia will begin monitoring how much electricity you use each month. Here’s why that’s a good thing:

For each kilowatt-hour (kWh) you use, Arcadia buys something called a Renewable Energy Certificate, or REC.

The REC does two things:

1. It claims on your behalf a kWh of clean power that’s been generated by a wind turbine.
2. It infuses that wind facility with more investment income so it can create more wind power, which enables your utility to use less coal and oil.

Isn’t that brilliant?

In all likelihood, the electricity you’re using now has been generated by a utility that relies on coal or oil, the fossil fuels that are responsible for climate change and dirty air.

This short video makes it clear why that’s so unhealthy for you, your kids and the world.

When you pay your bill through Arcadia, you are basically helping to build more windmills and make more wind power available to your utility grid, but at no cost to you.

Ultimately, the goal is that NONE of your power will be generated by fossil fuels and ALL of it will come from clean energy.

Germany is already aiming for that target:

You can help the U.S. become a renewable energy power, too, just by letting Arcadia buy RECs based on how much power you use.

(You don’t have to cut back on your electricity use to work with Arcadia, though of course, that’s a good idea. Here’s how you can do that.)

All You Have to Do Is Sign Up for a Free Green Energy Account. Arcadia Will Do the Rest.

Could anything be simpler?

FREE CLEAN ENERGY BONUS!!!

Get your friends to sign up, too, and save even more.

You’ll earn up to $25 off your actual bill for each person you refer to Arcadia power. There is no limit to how much you can earn.

I usually don’t make such a hard pitch here on BigGreenPurse.com. But I completely and totally believe that we all need to shift to clean energy if we’re going to stop climate change and reduce the air pollution that is making so many of us sick. I want to live in a healthier greener world, and shifting to clean energy is the way to do it.

Sign up for Arcadia Power today. Thanks!

NOTE: I have partnered with Arcadia Power because it is essential to shift from coal and oil to wind and solar. Arcadia’s approach is one of the best I’ve seen to make it easy for you to do that. All editorial opinions remain my own.

The post How You Can Get Free Clean Energy Without Building Your Own Windmill appeared first on Big Green Purse.

Here’s his advice. I hope it helps you choose cleaner, greener energy where you live.

The start of the New Year is time for resolutions. If you live in a state with electricity consumer choice, you can resolve to reduce your carbon footprint and keep that pledge with just a little bit of time spent researching your options for alternatives to coal, oil and nuclear and filling out a form or two on the Web—no need to invest in solar panels or doing anything more complicated than a few clicks of the mouse. 

 For several years now, I have purchased electricity from a supplier that offers me 100 percent wind-generated electricity. It was surprisingly easy to switch. Yet, talking to my environmentally-conscious friends, I find that many of them are not even aware that they have a choice.

I encourage you to look in to it. Here are a few tips on getting started.

1) Do you have the option? To see if your state offers consumer choice, go to this Web page of the U.S. Energy Information Administration.  You’ll see a clickable map of every state. Hover the cursor over your state. A little pop-up menu will tell you whether retail choice for electricity supply is available where you live. According to the EIA map, retail choice is available in Maine, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Maryland, Delaware, Ohio, Michigan, Texas, and Oregon, plus the District of Columbia.

2) Click on your state outline. You’ll be taken to a page that contains arcane and old information about the status of deregulation in the state. Ignore that. What you want are links to the state Web sites. Click on the link that says [STATE] Web sites, and you will go to a page that will contain links to Web sites relevant to that state. One of them will be to the State Public Service Commission (it has a different name in different states—for example, “the Board of Public Utilities” in New Jersey). For your state, that’s the place to get started. 

For example… Since I don’t have room to walk through every state in detail, I will use my state, Maryland, as an example. 

Starting with the Energy Information Administration’s clickable map, when I click on Maryland, I go to a page titled, “Maryland Restructuring Active.” In the upper right of that page, there is a list, “Other Links,” and the option to click on the link, “Maryland Web sites.” That takes me to a page with links to some electric utility companies that serve Maryland and to the Maryland Public Service Commission. The link on this page to the Maryland PSC doesn’t work, so I went to Google to find the right page to begin my search for electricity suppliers in Maryland.

On this page, I select a customer type and utility service area. In my case, I’m looking for electricity in the Pepco service area, so I select Electric/Residential/Pepco. I also selected the option for looking only for suppliers who are seeking new customers. 

3) Choose a supplier. Once you identify your service area and your residential status, you’ll be taken to a page offering a long list of electric suppliers. This is where you will spend the most time. For Maryland, 39 suppliers are listed, but not all of them offer clean fuel options. Some list themselves as “suppliers,” some as “brokers,” and some as “aggregators.” (See this fact sheet for an explanation.) From this page, you can click on the listed company Web sites to see what their energy mix is, pictured above. (If they don’t tell you what the fuel options are, you can be pretty certain they are not a clean energy provider.)

There is a company called Clean Currents. I’ll click on that. (Full disclosure: I am actually getting my power from Washington Gas Energy Services, which was selling 100% wind when I switched several years ago.)

A big button says “Sign Up Now.” Easy enough. I next have to enter my zip code, and click the button, “View Your Rates.” I am given a choice of three offerings, differing in the term of the contract (12 or 24 months) and whether I will purchase renewable energy certificates (RECs, creating demand for wind power across the country) or “Neighborhood Wind” (locally-generated wind electricity, from Pennsylvania). 

I can lock in to a 24-month contract for Neighborhood Wind for 11.1 cents per kilowatt-hour. If I choose “enroll now,” I am taken to a page where I must enter my utility account number and personal information for billing. Once I hit submit, Clean Currents will take care of switching my electricity supply. I will continue to receive a bill from Pepco, my electric utility, which will continue to charge for distributing the electricity. Charges from my new supplier (Clean Currents, in this case) will appear separately on the same bill.

If you have your latest electric bill with your account number handy, this entire process takes only a few minutes, depending on how much research you want to do with your supplier options.

4) What will it actually cost? How much is 11.1 cents per kilowatt-hour? If I did not exercise my right to choose a supplier, I would receive Pepco’s “Standard Offer Service.” As of this writing, the price is 9.3 cents per kilowatt-hour. According to my last bill (Nov/Dec), I used 536 kilowatt-hours of electricity, so I would have paid an extra $9.64 with Clean Currents for the month. Pepco’s Standard Offer Service (as of December 2013) is generated by coal (42.7%), followed by nuclear power (33.6%) and natural gas (16.6%). Only 6.6% is generated from renewable sources.

That $9.64 for the month is my environmental premium with Clean Currents. The price of Standard Offer Service goes up and down, as does the price of wind power (though you are protected from price changes for the length of your contract).

5) Bottom Line? Feel good, take a stand, support clean energy.

In the absence of national policy to reduce carbon emissions from power production, we can make our own policy. We can simply stop buying coal-generated electricity. It’s really easy.

Questions? Get them to Diane, and I’ll try to answer them at a later date. I’d love to encourage as many people as possible, if your state permits, to exercise the option to buy clean energy. 

Maurice Belanger is an environmentally-minded neighbor, freelance writer, and consumer of green power.

Thanks, Maurice!

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