Green Power Marketing in the United States: A Status Report (Fifth Edition)

Abstract

For the first time in many decades, consumers are being given a choice of who supplies their electric power and how that power is generated. One of these choices is to support electricity generation from more environmentally beneficial energy sources. The term "green power" generally refers to electricity supplied in whole or in part from renewable energy sources. More than one-third of all U.S. consumers now have an option to purchase some type of green power product, from either their regulated utility provider or in competitive markets. As competition spreads in the electric power industry, more consumers will have this choice. Green power marketing has the potential to expand domestic markets for renewable energy technologies by making renewable electric service available directly to retail consumers. Traditionally, renewable energy development has been limited by the willingness of regulated utilities to invest in these resources on behalf of all customers. Customer choice allows consumers to effect resource decisions in the retail marketplace. In survey after survey, consumers have expressed a preference for cleaner energy and a willingness to pay more, if necessary, for these sources. 1 Twenty-four states and the District of Columbia have enacted legislation or adopted rulemakings to open their power markets to competition. 2 As of July 2000, green power was being competitively marketed to retail customers in five states: California, Connecticut, Maine, New Jersey, and Pennsylvania. The number of utilities with green pricing programs continues to grow and now totals more than 80. The purpose of this report is to provide descriptive information on green power market trends and programs in both competitive and regulated markets. Overview Competitive Markets Green power marketing refers to the sale of green power in competitive markets, where multiple suppliers and service offerings generally exist. As of July 2000, retail consumers can purchase competitively marketed green power in California, New Jersey, and Pennsylvania, and to a lesser extent in some New England states. Green power is also being sold competitively in wholesale power markets in Illinois and New York (Figure 1). California and Pennsylvania have been the most active competitive markets for green power. In Pennsylvania, market rules were established that have encouraged customer switching-as of July 2000, 10% of eligible customers had switched to an alternative supplier. Of these customers, it is estimated that about 15% have switched to a green power marketer. And while the market rules established in California do not encourage customer switching, readily accessible renewable power sources and state-based market incentives have encouraged a large number of companies to sell green power in the market. Because of these incentives, virtually all residential customers that have switched suppliers, and many commercial customers, are receiving green power.

Expectations for renewable energy under market restructuring: the U.S. experience

“…'Green choice', in turn, would precipitate major renewable investment e.g. [55,56]. In retrospect, this expectation of widespread altruistic behavior appears premature.…”

Green Power Marketing in the United States. A Status Report (11th Edition)

“…The data presented in this report are based on figures provided to NREL by utilities and independent renewable energy marketers. 3 Green power market data for previous years are available in , , Bird and Swezey (2005a), Bird and Swezey (2004), Bird and Swezey (2003), Swezey and Bird (2000), and Swezey and Bird (1999).…”

Green Power Marketing in the United States: A Status Report (Tenth Edition)

“…The data presented in this report are based on figures provided to NREL by utilities and independent renewable energy marketers. 3 Green power market data for previous years are available in Bird and Swezey (2006), Bird and Swezey (2005a), Bird and Swezey (2004), Bird and Swezey (2003), Swezey and Bird (2000), Swezey and Bird (1999).…”