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Consumer Demand for Renewable Energy

Mass Energy advocates for energy affordability and environmental sustainability. Offering green power options like wind and solar to consumers for societal benefit. Challenges include supply and consumer education.

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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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