Green power: A renewable energy resources marketing plan

Conference · Wed Dec 31 04:00:00 EST 1997

OSTI ID:347588

Barr, R C ^[1]

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1. Earth Power Resources, Inc., Tulsa, OK (United States)

Green power is electricity generated from renewable energy sources such as power generated from the sun, the wind, the heat of the earth, and biomass. Green pricing is the marketing strategy to sell green power to customers who voluntarily pay a premium for it. Green pricing is evolving from the deregulation of the electric industry, the need for clean air, reflected in part as concern over global warming, and technology advances. The goal of the renewable energy marketing plan is to generate enough revenues for a utility to fund power purchase agreements (PPAs) with renewable energy developers or construct its own renewable facilities. Long-term, fixed price PPAs enable developers to obtain financing to construct new facilities, sometimes taking technological risks which a utility might not take otherwise. The marketing plan is built around different rate premiums for different categories of ratepayers, volunteer customer participation, customer participation recognition, and budget allocations between project costs and power marketing costs. Green prices are higher than those for conventional sources, particularly prices from natural gas fired plants. Natural gas is abundant relative to oil in price per British thermal unit (Btu). Green pricing can help bridge the gap between the current oversupply of gas and the time, not far off, when all petroleum prices will exceed those for renewable energy. The rapid implementation of green pricing is important. New marketing programs will bolster the growing demand for renewable energy evidenced in many national surveys thus decreasing the consumption of power now generated by burning hydrocarbons. This paper sets forth a framework to implement a green power marketing plan for renewable energy developers and utilities working together.

• OSTI ID: 347588
• Report Number(s): CONF-970701--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
DISPERSED STORAGE AND GENERATION
ELECTRIC UTILITIES
LOAD MANAGEMENT
MARKETING
RENEWABLE ENERGY SOURCES