Green Power in Australia Research Available

Source: News Observer
Published: Thursday, December 20, 2007

Research and Market has announced the addition of "Development of Green Power in Australia: More Households Go Green; but Confusion and Inertia Remain" to their offering.

Introduction

As an increasing number of retailers launch green tariffs and green energy is more prominently offered, Australian consumers are signing up to green power at a rapid rate. The country now has amongst the highest penetration of residential customers buying accredited green energy in the world, and the share of households taking a green product is expected to reach double figures by 2009.

Scope

A May 2007 survey of 2000 Australian households regarding behaviours and attitudes towards green energy and other environmental initiatives. A comparison of the 2007 survey results with a similar survey conducted in 2005. Breakdown of responses by state, age group, spending and household size. Analysis of historic take-up of accredited green power by state, share of customers by supplier and price comparisons across all tariffs.

Highlights

Residential green power customers doubled in the 12 months to June 2007 to pass half a million by June 2007. The number is expected to reach one million by mid-2009, with 11.5% of households expected to be purchasing accredited green power. Take-up is being driven by desire to help the environment and a limited price differential with existing tariffs, with green power just one of an increasingly wide range of environmental measures being adopted by households. Resistance to green tariffs is primarily due to additional cost and lack of understanding, though consumer awareness campaigns and new regulations helped significantly to improve knowledge of green power during 2007.

Reasons to Purchase

Identify key sources of information for consumers when switching and the effectiveness of various offers in encouraging customers to switch. Understand the reasons behind customers choosing to buy green power, and what is preventing others. Evaluate the potential for further take-up of green power by state, including forecasts through to 2009.

Contents:

Our View

Catalyst

Summary

Methodology

Analysis

Australia has one of the highest rates of take-up of green tariffs worldwide

Residential green power customers doubled in the 12 months to the end of June 2007 to pass half a million

Over 10% of residential customers in Victoria had signed up to green power by 30 June 2007

Take-up of green energy in Australia is higher that many other deregulated energy markets

While consumers are increasingly taking up green power, most are choosing options with the smallest share of accredited green power

Origin Energy has dominated the green power market, but the market is becoming increasingly fragmented

Prices vary significantly within the different accredited bands

Take-up is being driven by desire to help the environment and limited price differential with existing tariff

Resistance to green tariffs is primarily due to additional cost and lack of understanding

The more options, the more confusion for customers

A quarter of respondents have not got round to it

Carbon offsetting is not expected to take the place of green energy

Green power is just one of an increasingly wide range of environmental measures being adopted by households

CONCLUSIONS AND FORECASTS

Australia forecast to have over one million green power customers by mid-2009

APPENDIX

Green energy products offered in Australia

ActewAGL

AGL

Alinta

Australian CO2 Exchange (ACX)

Aurora Energy

Australian Power & Gas

Click Energy

Climate Friendly

Country Energy

COzero

EnergyAustralia

Energy Pacific/Pacific Hydro

Ergon Energy

GreenSwitch

Integral Energy

Jackgreen

Origin Energy

Qenergy

Simply Energy

Synergy

TRUenergy

Victoria Electricity

Definitions

Sources