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Consumer Demand for Renewable Energy

Consumer Demand for Renewable Energy. 670 Centre St. Boston, MA 02130 (617) 524-3950 www.massenergy.com. Mass Energy. Nonprofit, established 1982 Dual mission Energy affordability Environmental sustainability Programs Advocacy and Market-Based

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Consumer Demand for Renewable Energy

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  1. Consumer Demand for Renewable Energy 670 Centre St. Boston, MA 02130 (617) 524-3950 www.massenergy.com

  2. Mass Energy • Nonprofit, established 1982 • Dual mission • Energy affordability • Environmental sustainability • Programs • Advocacy and Market-Based • 7000 members in heating oil buying group • Solar • DOE Million Solar Roofs (solarboston.org) • MTC PV Cluster – Boston, Brookline, Newton, Somerville • Green Power Mass. Energy, 6/13/03

  3. Green Power • Can’t help residential consumers save on brown power • Different market conditions than heating oil • Can bring consumers and green power together for societal good • Reseller of “ReGen” since 1998 Mass. Energy, 6/13/03

  4. Green Power cont. • 2001: MTC consumer aggregation program • also support from John Merck Fund • Organized 15 environmental groups and Boston-area municipalities • affinity marketing • product development, environmental screens • Intention to herd consumers to retailers, but no retailers Mass. Energy, 6/13/03

  5. Plan B – Mass Energy as Retail Supplier • Fall 2002, developed plan to partner with a qualified wholesale supplier with NEPOOL account • Launch a delivered or “bundled” green power product by Earth Day 2003 Mass. Energy, 6/13/03

  6. Mass Energy’s Product • As much wind as possible, as much solar as we can afford, and as much biomass and small hydro as necessary • Mass Energy has 3-year contract with Hull Municipal Light Plant • Also working with Community Energy Inc., to market the Princeton project Mass. Energy, 6/13/03

  7. DETOUR ! • National Grid announces green pricing program in mid-January • Mass Energy participates in collaborative • Creates New England WindSM, the only 100% new wind-based tag product available in New England (Hull) • www.newenglandwind.org Mass. Energy, 6/13/03

  8. Our View of Green Power • RPS: great policy – implementation important • Must make short-term obligations translate into long-term commitments to projects • Voluntary demand should grow gradually and equal the RPS in significance • Wind is best source for voluntary GP market • LFG is best for RPS • solar should be supported by RPS, GP market, MTC, and distribution companies Mass. Energy, 6/13/03

  9. Our View of Green Power cont. Source: Bolinger et al 2001, originally E. Rogers, Diffusion of Innovations, 1992. Mass. Energy, 6/13/03

  10. Our View of Green Power cont. • Long-term prospects for green power are good • John Maynard Keynes • “In the long run, we are all dead.” Mass. Energy, 6/13/03

  11. Green Pricing Effect • Consumers more likely to purchase without having to switch electricity supplier • MTC survey by Opinion Dynamics • utilities and nonprofits most popular among potential green power buyers • Stalls competitive market for bundled green power products at least until 2005 Mass. Energy, 6/13/03

  12. Green Pricing & National Grid • Most programs in U.S. involve a regulated monopoly or municipal utility • Good programs have 3-7% penetration and are improving over time • NIMO model too new to declare success • Maybe multiple suppliers are needed for 20% (Keynes?) Mass. Energy, 6/13/03

  13. Challenges • NSTAR’s green pricing program? • Supply • Can MTC help suppliers get new wind and solar to consumers? Mass. Energy, 6/13/03

  14. Challenges cont. Consumer Education Needed (publicly funded) • Green is better than brown • New is better than old, especially when emissions are zero • otherwise, most of premium will go to existing hydro and biomass, consumers won’t know to ask for more • New wind and solar should be priorities of program! • Educated citizens will support good policy (i.e. RPS, state procurement, emission reductions) Mass. Energy, 6/13/03

  15. Road from Here • Who will supply via National Grid and NSTAR? • Maybe Mass Energy will: • Supply? • Aggregate? • Educate? • Agitate? Mass. Energy, 6/13/03

  16. Mass Energy • Nicole Wobus nicole@massenergy.com • Jaime Kopke jkopke@massnergy.com • Larry Chretien larry@massenergy.com www.massenergy.com www.newenglandwind.org www.solarboston.org Mass. Energy, 6/13/03

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