In general, is green power becoming harder to sell relative to power from traditional sources?

Gürcan Gülen, CEE

Gürcan Gülen, Senior Energy Economist, Center for Energy Economics (CEE), Bureau of Economic Geology, University of Texas. It may have become a little harder but not much.  In an environment of economic slowdown, it is not surprising that people, especially businesses, seek cost-cutting options.  Because electricity demand is lower and natural gas is cheaper, cheaper electricity is available to savings-conscious customers.  Wind turbine costs, and hence installation costs, have risen in recent years but wind prices (with PTC) remained competitive in most markets, including Texas; wind O&M costs have also come down (see recent DOE/EERE study, 2008 Wind Technologies Market Report).  One can find competitively priced renewable products around Texas in www.powertoshoose.org site. Non-wind technologies will continue to struggle due to higher cost structures.

Jennifer Martin, CRS

Jennifer Martin, Deputy Director, Center for Resource Solutions in San Francisco, California. The voluntary renewable energy market continues to experience double digit growth, topping 24 million MWh nationally in 2008.  Increasingly sophisticated customers, largely from the commercial sector, find value in the price certainty that some utility green power offerings provide, as in Austin.  Customers can reap value over time by avoiding the volatility of natural gas prices and their impact on utility rates.    A CRS survey of market participants revealed that customers are interested in greening up operations in facilities across the country. Many large purchasers prefer REC products sourced from one seller and delivered without the uncertainties of transmission constraints. National certification and recognition programs, such as the US Green Building Council’s LEED program, U.S. EPA’s Green Power Partnership and Climate Leaders, and Green-e Marketplace, also lend credibility to these purchases.  For consumers, the value is in making a difference for their family, the environment and the economy.

Ed Holt, consultant

Ed Holt, Consultant. Harder to sell? I don’t think so, but it’s difficult to make a direct comparison. Green power products are marketed as a differentiated product with environmental and other benefits—and it requires a proactive choice—whereas traditional electricity is not differentiated, it is the standard or default product that most consumers don’t even think about except when it’s not there. One indicator, however, is the growth in green power sales. The National Renewable Energy Lab compiles this data, and reports that in 2004, utility sales of green power products in the US amounted to 1,800 million kWh. In 2005 that grew by 33% to 2,500 million kWh. In 2006 it grew by 39% (over 2005) to 3,400 million kWh, and in 2007 (the latest year for which we have data) it grew by 25% to 4,300 million kWh. These figures do not suggest any diminishing interest in green power—quite the opposite.

Karl Rábago, AE

Karl Rábago, Distributed Energy Services, Austin Energy. These are tough and uncertain economic times, and despite our broader national “pioneering spirit,” people often get nervous trying new things in times like these. Stronger still in this country now, however, there seems to be a clear recognition that in some very fundamental ways, we need change. Since one of the most fundamental aspects of life in modern society is energy, and in particular, electricity, I think the time is right for green power—especially relative to the “traditional” power sources. The challenge will be in successfully launching a green power market “makeover.” It is time to discard previous notions that green power is only for fringe markets, and in their place, instill and adopt a new broad-based ethic around the way electricity is made. Green power has the attributes that should make it an easier sell in world where sustainability takes hold as a central organizing principle of society.

Blaine Collison, EPA

Blaine Collision, Green Power Partnership, U.S. Environmental Protection Agency. The national green power sales trends as viewed through the lens of EPA’s Green Power Partnership (GPP) are positive.  In spite of the recent economic conditions, GPP is on pace to equal or exceed its highest total of new Partners - organizations making active green power purchases - in a calendar year.  GPP also continues to see many companies expanding existing green power commitments; Kohl’s and Whole Foods Market are two recent examples.  Organizations are continuing to embrace green power purchasing as an important climate change and energy security strategy.