Jul 12, 2005 -- Datamonitor

 

Australians are among the most willing national groups to support the environment and use green energy. Indeed, the number of households in Australia consuming accredited green power is expected to expand rapidly over the next two to three years. However, Australians need to be better informed of the options available to them, and more accessible pricing options should be offered.

While accredited green power has remained just a niche market in Australia for many years, the launch of more affordable tariffs coupled with more active sales and marketing from selected retailers is helping to drive growth.

According to a Datamonitor survey of over 2,000 households, 81% of customers would switch to green energy if prices were the same, but just 9% would be attracted if the prices were 6% higher than their current costs. With only a very small share of consumers prepared to pay a significant premium there is demand for utilities to offer green electricity products that, although delivering a smaller proportion of accredited green power, have minimized price premiums.

Aside from price, other barriers to green energy take-up include customer confusion, the time required to compare different options, and concerns that green energy is simply a marketing gimmick. In order to overcome these obstacles, electricity retailers have already begun to offer more simple products to customers, ensuring the sign-up process is as quick and easy as possible. Meanwhile governmental support for green energy and awareness programs is helping to overcome customer concerns relating to the efficacy of green products.

The green power national accreditation program sets stringent environmental and reporting standards for green energy products offered in Australia. The accreditation of a supplier's product reassures the customer that the extra being spent is being used for expanding the renewable energy generation market.

Through to the end of 2007, the number of customers on accredited green power schemes is expected to grow rapidly, rising from 125,128 at the end of 2004 to more than 450,000 by the end of 2007 (this only includes customers for those schemes currently accredited).

The interest in green energy is encouraging, but consumers need to understand the difference between accredited and non-accredited green products. Only the former, with the 'Green Power' tick of approval, guarantees that the consumer is helping drive additional renewable energy development in Australia.

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