Green energy: consumers aren't buying it

Content

• Catalyst
• Summary
• Methodology
• Analysis
  • Demand for green energy is yet to be stimulated by the wholesale market
  • Disjuncture between wholesale and supply is caused by the RO subsidy.
  • Suppliers need to enter the wholesale market; generators do not need to supply.
  • Taxes and subsidies do little to encourage renewable energy tariffs.
  • Suppliers should stimulate green energy demand to recoup the cost of the RO.
  • Green energy is niche as suppliers are not "pushing" it to consumers
  • Only 5% of the renewable power is being supplied to residential consumers.
  • Fuel mix disclosure should increase consumer interest in green tariffs.
  • Levy exemption certificates create I&C demand for renewable power.
  • Residential consumers are not actually buying "real green" power.
  • Green tariffs are peripheral because suppliers only market them at a premium.
  • Green tariffs have evolved, but have a long way to go
  • Suppliers are now starting to offer integrated environmental tariffs.
  • The EEC and the 28-day rule hinder the viability of energy saving tariffs.
• Appendix: Green Energy Tariffs, By Supplier
• Further reading
  • Ask the analyst
• List of Figures
  • Figure 1: Diagram of the interrelationship between the wholesale and supply markets.
  • Figure 2: ROC accredited power [%] generated by different parties.
  • Figure 3: Diagram showing how the CCL and RO subsidies provide an incentive to I&C buyers, but not residential consumers
  • Figure 4: The performance of meeting the RO with three forecasts
  • Figure 5: Datamonitor's estimates of the shares of supplying renewable power to residential customers.
  • Figure 6: Fuel mix disclosure of the major energy suppliers.
  • Figure 7: Demand for levy exempt renewable power from I&C sector - modelled from MEU buyer survey.
  • Figure 8: Renewable power generated compared to ROCs and LECs issued.
  • Figure 9: Why have green tariffs remained peripheral? Rate [1-5] (1= disagree totally & 5 = agree totally)
  • Figure 10: Table and description of green energy propositions, by supplier
  • Figure 11: Performance of the energy efficiency commitment [EEC]. Homes reached by type of installation.
  • Figure 12: Exploratory diagram of microgeneration in the UK, by type of installation [2006-2010].
  • Figure 13: Renewable power is offered by most suppliers, but price and quality vary.
  • Figure 14: CO2 neutral tariffs are starting to be offered by some of the major suppliers.
  • Figure 15: Suppliers have not yet established tariffs that favour microgeneration.
  • Figure 16: Donations to "Green funds" are offered by many of the larger suppliers.
  • Figure 17: Energy saving plans are being offered by major suppliers and fit in with the EEC.