ECOHZ GO² is a new and innovative solution for financing and developing new, renewable energy. It is the first solution that combines purchasing documented green power with financing selected renewable power projects.
From the start, GO2 was created to be simple, scalable, low-cost – while ensuring maximum impact. The following principles were key:
- Base the concept on the European system of Guarantees of Origin – and provide additional impact to a standard “green purchase”.
- Create and deliver new renewable power to the grid – not short term “return”
- Contribute to accelerate deployment – but not prove additionality
- Establish an attractive and commercial concept, and at the same ensure «low-risk & no-hassle» approach
- Prove the concept – then offer GO2 as an open standard to the market
- Enable companies to become energy positive – producing more renewable energy than they use.
Here are 12 things that you should know about ECOHZ GO2
- Only mature renewable technologies are eligible – this to reduce risk. This includes solar, wind, hydro, geothermal and biomass, but not pilot projects or technologies under development.
- Fast deployment is important – therefore, only ready-to-be-built projects will be considered.
- GO2 will be a trigger in realizing the projects, providing only 5% to 15% top-financing – but resulting in a powerful “DOMINO effect”.
- With the aim of optimizing the money flow, a new tax efficient foundation has been established.
- The Foundation is named ECOHZ Renewable Energy Foundation, and it will provide attractive loans instead of equity. The loans will be repaid, creating a “multiplier effect” where the money can be used in more than one project.
- It’s possible to purchase GO2 from an existing power plant in one country, and finance the building of a new power plant in a second country.
- Since GO2 includes a Guarantee of Origin, a GO2 purchase can also be used for CO2 accounting and reporting according to international standards such as Greenhouse Gas Protocol and CDP.
- A GO2 purchase can optionally include the future Guarantees of Origin from the power plant to-be-built.
- One GO2 purchase of 50 GWh, will typically create 5 GWh of new clean power on an annual basis.
- GO2 has a fixed price of EUR 4. The cost impact of a 50 GWh purchase is thus EUR 200.000, amounting to approximately 3-5 % increase in electricity bill.
- Taking a lifetime perspective – securing four (4) customers in 2015, purchasing 50 GWh and all signing up for 3 year GO2 agreements, and increasing this to a total of thirty-six (36) customers in 2020, will create a portfolio of new power plants that will generate 20,7 TWh of new, CO2-free power over 40 years.
- In May 2014, CDP and ECOHZ signed a partnership for GO2 that involves creating an open source standard that allows all other providers around the world to offer their own solution and participate in advancing renewable power generation.