If you’re reading this, it’s likely that you’ve received an email from us letting you know that the price you pay for GreenPower is increasing.
First of all, thank you for helping support the Australian renewable energy industry. In 2015, a total of 1,092,976 MWh of GreenPower was sold to customers in Australia. That’s almost three times the clean energy produced by the Mt Mercer Wind Farm near Ballarat in Victoria every year (owned and operated by our parent company Meridian Energy), and enough electricity to power about 218,000 households.*
For our customers who buy GreenPower, the change to our GreenPower price from 1 January 2017 is going to have an impact on your electricity bill as well as on the Australian renewable industry.
The price of GreenPower at Powershop
Powershop is a big supporter of renewable energy. Our parent company Meridian Energy owns and operates two wind farms in Australia (Mt Mercer as mentioned above, and Mt Millar in South Australia) and we voluntarily offset all the carbon emissions associated with our customers’ electricity usage at no extra cost to our customers. As part of our aim to increase the development of renewable energy generation in Australia, we’ve also recently partnered with Hepburn Community Wind Farm to support the management and day-to-day operations of this fantastic community-owned asset.
When the price of RECs (Renewable Energy Certificates – read on to find out what these are) increases, the cost of GreenPower does too. This means RECs are worth more and that means further investment in renewable energy is more attractive. In 2015, renewable energy provided 14.5% of Australia’s electricity, up from 13.5% in 2014. This increase is positive, but Australia needs a lot more investment before it reaches anywhere close to 100%.
From 1 January 2017, Powershop will be selling GreenPower at a premium of 10c/kWh (incl. GST). This is to ensure that the price of the GreenPower we sell accurately reflects the true market cost. This increase ultimately contributes to the continued growth of renewable generation in Australia – an aspiration you may have chosen to support.
What exactly is GreenPower & why should I buy it? GreenPower is a voluntary government accredited program that allows Australians to displace their standard electricity usage with certified renewable energy, which is added to the grid on their behalf. Check out our handy picture below for how it actually contributes to the renewable industry and read this blog for more on GreenPower.
What are RECs? REC stands for Renewable Energy Certificate. One REC is equal to 1MWh of eligible renewable electricity generated above the power stations baseline (most power stations have a baseline of 0%). Essentially, RECs are used as electronic ‘currency’ and are traded by eligible parties, such as Mt Mercer Wind Farm (a generator) and Powershop (a retailer), the price of which varies according to supply and demand in the market.
* Based on an average household usage of 5MWh p.a.