US green tariff sales soar 20 per cent

Despite the onset of recession, 2008 proved to be a bumper year for green energy tariffs in the US as utilities saw sales to businesses and consumers climb about 20 per cent.

According to new figures from the Department of Energy's National Renewable Energy Laboratory (NREL), more than 850 US energy companies now offer green tariffs to more than 600,000 customers. Together they sold five billion kilowatt-hours through green power programs last year, an increase of about 20 per cent on 2007.

NREL senior energy analyst Lori Bird said that despite the economic downturn, utility green power sales continued to expand nationally last year.

She added that a number of 'national leaders' had emerged where premiums charged on green energy were kept to under a cent per KWh, customer participation rates varied between five and 21 per cent, and revenue from green tariffs topped five per cent of all electricity sales.

Ranked by renewable energy sales, Austin Energy in Texas led the NREL's top ten, closely followed by Portland General Electric, PacifiCorp, Xcel Energy, and the Sacramento Municipal Utility District.

Ranked by the percentage of customer participation, the City of Palo Alto Utilities came out top, followed by Lenox Municipal Utilities in Iowa, Portland General Electric, Madison Gas and Electric Company, and Silicon Valley Power.

The NREL report said successful tariffs were characterised by persistent and creative marketing strategies, as well as a steady reduction in the premium that customers on green tariffs tend to pay, which has resulted in two utilities – OG &E Electric Services and Edmond Electric – offering wind power at lower rates than non-renewable energy.