The Australian Green Power Market to 2011

CATALYST 1
SUMMARY 1
ANALYSIS 3
Demand for green power growing fastest in Queensland 3
Residential green power customer numbers reached over 940,000 by June 2009 3
Over 10 percent of Australian homes now on a green tariff 5
Competitor analysis 7
Origin Energy and TRUenergy together account for over half of Australia's green power consumers 7
Company profiles 11
ActewAGL 11
AGL 11
Alinta 11
ARK Climate (Australian CO2 Exchange) 11
Aurora Energy 12
Australian Power & Gas 12
Carbon Planet 12
Click Energy 12
Climate Friendly 12
Country Energy 13
COZero 13
EnergyAustralia 13
Energy Pacific/Pacific Hydro 14
Ergon Energy 14
Horizon Power 14
Integral Energy 14
Jackgreen 14
Momentum Energy 15
Neighbourhood Energy 15
Origin Energy 16
Queensland Electricity 16
Red Energy 16
Simply Energy 17
South Australia Electricity 17
Synergy 17
TRUenergy 18
Victoria Electricity 18
Consumer attitudes to green power 19
Consumers are going green, but cost is leading some to switch back to grey 19
The opportunity to purchase green power at no extra charge to current rates remains a key driver 20
Though more customers reported paying a small premium for green energy 22
One quarter of respondents without green power would be prepared to pay a premium 24
If green power is no further cost or less than a 5% premium, there is potential to attract around three-quarters of the market 24
Confusion, however, remains a key barrier to green power take up as well as cost 25
Green power is becoming less of a priority for consumers as they seek to help the environment through other methods 29
FORECASTS 31
Growth in customers to slow only marginally as green power customers exceed 1.3m by end of June 2011 31
APPENDIX 35
Methodology 35
Definitions 35
Sources 35
Further reading 35
Ask the analyst 36
List of Tables
Table 1: Queensland became the second largest green power market as of June 2009 4
Table 2: Share of residential green power customers by state 5
Table 3: Over 15% of households in Victoria on a green power tariff 6
Table 4: Origin Energy and TRUenergy now account for over half of the green power market 8
Table 5: There are 27 companies retailing green power in Australia 9
Table 6: Many green power customers are unaware about whether their green power is accredited 20
Table 7: Accessible pricing and media coverage continue to be the key drivers for switching to green power 21
Table 8: More consumers reported paying a premium for green power 23
Table 9: Most customers without green energy would only be prepared to sign up at no extra fee 24
Table 10: Price is still the key barrier to signing up for green power 27
Table 11: Additional cost and lack of understanding are more significant barriers amongst young age group 27
Table 12: Victorian consumers most likely to feel they already do enough for the environment 28
Table 13: Green power purchasing is less of a high priority for consumers 30
Table 14: Forecast growth in green power customers, 2009-11 33
Table 15: Forecast share of green power customers by state, 2009-11 34
List of Figures
Figure 1: Queensland became the second largest green power market as of June 2009 3
Figure 2: Over 15% of households in Victoria on a green power tariff 6
Figure 3: Origin Energy and TRUenergy now account for over half of the green power market 7
Figure 4: Green power tariffs offered by company by state and territory, 30 June 2009 10
Figure 5: Many green power customers are unaware about whether their green power is accredited 19
Figure 6: Accessible pricing and media coverage continue to be the key drivers for switching to green power 21
Figure 7: More consumers reported paying a premium for green power 23
Figure 8: The "light green" market in Australia accounts for about 77% of consumers 25
Figure 9: Price is still the key barrier to signing up for green power 26
Figure 10: Green power purchasing is less of a high priority for consumers 29
Figure 11: By mid-2010 Australia is predicted to have 1.3million residential customers on accredited green power schemes 32
Figure 12: Queensland to become the state with the highest share of green power customers by 2010 33