A Melbourne city council shows interest in bulk purchase of renewable electricity to help reduce greenhouse gas emissions
the council of Darebin city in Melbourne, Australia is toying with the idea of cutting emissions of heat trapping gases like carbon dioxide and saving millions of dollars in electricity bills by bulk buying renewable electricity for its residents. Energy related emissions are largely responsible for the increasing concentration of greenhouse gases (ghgs) in the atmosphere.
The city council believes that establishing a group to purchase 'green power' on behalf of local people will help consumers to get the best deal. Many small consumers are unlikely to devote the time necessary to educate themselves regarding market conditions and opportunities and to actively make decisions about changing retailers.
Greenpower is electricity accredited under a government scheme as being produced from environmentally safe renewable sources like solar and wind power. All major retailers in the city sell a greenpower product at a premium given its environmental benefits. Australia' s electricity market will be fully deregulated in January 2002 giving householders and small businesses an opportunity to choose their retailer.
Apart from reducing ghg s and raising awareness about such gases, integrating greenpower component into the bulk purchase scheme will also help in encouraging growth of renewable energy market. According to estimates, if a group of 25,000 residents commits to a deal involving 25 per cent renewable electricity, Darebin will be able to slash its annual ghg emissions by 62,500 tonnes. Moreover, a potential reduction of 5-15 per cent is possible in the electricity bills resulting in total savings of us $1.25 to us $3.75 millions. Stephen Ray, executive director of the local government environment network Environs Australia, said that the initiative appeared to be a first of its kind and hoped others would follow the example.
Electricity costs are expected to increase, but it is assumed that group purchases help in achieving a better price as they ensure that considerable volumes are bought providing certainty of market share and stability to the retailers. In a complex and uncertain market, the council has the potential to act as a credible agent.
The idea has enough support in the community. A survey revealed that 97 per cent people wanted the city council to pursue the scheme and 79 per cent people were interested in purchasing renewable power.
Darebin's general manager for environment and amenity, Libby Hynes, feels that this initiative will go a long way in meeting Darebin's ghg reduction target of 20 per cent by the year 2010 requiring a reduction of around 836,000 tonnes. n
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