World Energy Solutions’ World Energy Exchange | World Energy Solutions
“Provides energy buyers the ability to have greater transparency around procuring green energy. The online auction platform and methodology employed by World Energy Solutions increased the efficiency and desirability for companies to make the switch to green power. The savings that the organization has passed on to customers is impressive.”
--Environmental Leader Product & Project Awards judge
The World Energy Exchange, an online energy brokerage platform operated by World Energy Solutions, enables end-users to acquire green energy at prices near or equal to—and sometimes even lower than —those available for brown power. The company does this by combining sequential pricing events, using insights generated from transaction experience, and employing the technology of an Anglo-Dutch auction. The World Energy Exchange has driven over $2 billion in savings for customers buying traditional and green power. It has enabled energy buyers with a mandate to procure green power to purchase more than originally intended by heightening competition among suppliers to the point where they often throw in green for free to win. The Exchange documents this “free green” opportunity in an easy-to-understand manner that spurs customers to transact. Even customers with low interest in procuring renewable power are frequently compelled by low pricing to buy green.
The World Energy Exchange changes the conventional method of green sourcing, resulting in lower prices, the company says. Historically, organizations purchasing green energy went through an RFP process where prices were requested in a sealed manner at a discrete time. The World Energy Exchange changes this dynamic: pricing is obtained for different product and term combinations in a sequence determined by energy sourcing experts. Real-time feedback provided to suppliers during the auctions compels them to reduce prices to win the customer’s business. And the exchange platform enables end-users to obtain pricing for a variety of products and terms in a compressed time-frame without additional effort: World Energy simply adds additional RFPs to the end-user’s auction.
World Energy, which tracks all results from the World Energy Exchange, says it has observed a number of impacts since 2010:
–More than 30% of auction customers choose to obtain green pricing when sourcing electricity.
–50% of those customers who obtain green pricing end up sourcing green (either physical green power or RECs) as part of their electricity purchase.
–Green represented 4.1% of all electricity purchased through World Energy over this period, more than triple the national average of 1.3%.