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

Abstract

Voluntary consumer decisions to purchase electricity supplied by renewable energy sources represent a powerful market support mechanism for renewable energy development. Beginning in the early 1990s, a small number of U.S. utilities began offering ''green power'' options to their customers. Since then, these products have become more prevalent, both from traditional utilities and from marketers operating in states that have introduced competition into their retail electricity markets. Today, more than half of all U.S. consumers have an option to purchase some type of green power product from a retail electricity provider. Currently, more than 600 utilities, or about 20% of utilities nationally, offer green power programs to customers. These programs allow customers to purchase some portion of their power supply as renewable energy--almost always at a higher price--or to contribute funds for the utility to invest in renewable energy development. The term ''green pricing'' is typically used to refer to these utility programs offered in regulated or noncompetitive electricity markets. This report documents green power marketing activities and trends in the United States.