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Collection of Evidence Related to the Costs and
Benefits of Green Public Procurement
(Part 1)
§ Green version 2: 100% RES-E and HE-CHP 60 , whereas HE-CHP may account to not
more than 50%, including accessory requirements. These accessory requirements
result in a defined environmental leverage effect, which is not (necessarily) guaranteed
by green version 1. The accessory requirements refer to either eligibility 61 or
additionality 62 . Requirements on these criteria might refer directly to the supplying
power plants or to a fund 63 fed by the green product.
§ Green version 3: 100% RES-E, including accessory requirements. Again, the
accessory requirements refer to either eligibility 61 or additionality 62 , whereas
requirements on these criteria might refer directly to the supplying power plants or to a
fund 63 fed by the green product.
5.6.3 Functional unit
The assessment of LCC for electricity is based on Megawatt hours (MWh) as quantified
functional unit.
The price for electricity supply for large consumers, such as industrial consumers or public
institutions, depends on the volume of electricity covered by the contract. Therefore, the
considered specifications for the public procurement of electricity of a reference city were
defined as follows:
§ Overall purchasing volume of 10 GWh p.a.;
§ Ordered capacity of 2.500 kW;
§ Contract period of 1 year.
60 As reference values for calculation of efficiency of CHP plants according to the CHP Directive (Article 4) have
only been published by the European Commission in February 2007, national implementation of the Directive
and corresponding calculation procedures is delayed. Therefore, the assessment within this study also
allowed for CHP in general in case no sufficient data on efficiency of CHP plants is available.
61 Eligibility comprises requirements in order to reduce the environmental impact of specific renewable energy
sources (such as hydropower or biomass) or technologies and usually refers to nature conservation
62 Additionality means that the consumption of the green product has to stimulate directly an expansion of RES-
E and HE-CHP generation. Thus, requirements have been specified that at least 50% of the electricity must
be produced in plants not being older than 12 years, whereas at least 25% must be produced in plants not
being older than 6 years.
63 Funds ensure that a certain amount of the electricity price is invested in the erection of new renewable power
plants. As first estimation, one can assume that the environmental leverage effect of 1 ct/kWh is in the same
order of magnitude as the defined additionality criterion (see above). This could be proved within the Öko-
Institut’s EcoTopTen project
(cf. ‘Hintergrundpapier Strom’ at http://www.ecotopten.de/download_forschungsberichte.php)
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