ABSTRACT

The phrase ‘brown energy’ is used to denote energy produced by other less environmentally friendly sources. The way in which this was implemented was to allow holders of a green supply licence to supply electricity to any enduser. The result was that independent green supply companies could immediately approach customers and supply them with electricity. This went well beyond what was required by Directive 96/92/EC and gave green suppliers a head-start over brown suppliers, creating the long-term possibility of a green market, or at least a green brand, although this possibility has not yet crystallised. Such a selling point would increase customer choice and assist Ireland in meeting its obligations to reduce emissions under the Kyoto Protocol. A similar step was taken in the Electricity Supply Act 2001 in relation to the generation of electricity by Combined Heat and Power (CHP). CHP plants are defined as generating stations with a very high level of efficiency (70%) and for this reason they are seen as fundamental to the drive towards reduction of emissions.