Green power adds price pressures
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Tuesday, 3 October, 2000 - 21:00
ELECTRICITY costs in WA are likely to rise due to the Federal Government’s push to make power generation “greener”.
The Federal Government wants two per cent of the electricity supplied to Australians to come from renewable energy sources.
This regulation, yet to be ratified by Parliament, will apply to all electricity retailers.
Electricity drawn from “green” sources is more expensive than electricity generated through traditional means.
However, according to the Green Electricity Market Project, customers are prepared to pay the premium for green power.
Consumers can buy green electricity through a market-based scheme started by the New South Wales Sustainable Energy Develop-ment Authority (SEDA).
They have to pay a premium for the privilege.
Due to the common grid in the eastern states, the scheme quickly expanded to include Victoria, Queensland and South Australia.
Western Australians have access to the scheme through Western Power’s Natural Power. The WA Office of Energy accredits it to the scheme.
Both WA residential and business consumers pay a 3¢ per kilowatt hour premium if all their electricity comes from green sources. They can choose the level of subscription.
According to Western Power, taking a 25 per cent subscription would add about 68¢ a week to an average residential power bill.
To become accredited to the SEDA scheme, a generator has to meet strict guidelines. Solar and wind generation systems are acceptable. Only existing hydro-power schemes can be used.
Certain biomass generators are allowed. Either the biomass is burnt to produce power or the methane from rotting organic matter in rubbish tips, sewage works or other waste treatment works is burnt to generate power.
Office of Energy built environment and energy efficiency manager Dennis Smedley said the guidelines had to be strict because it was a market-based scheme.
“Because consumers are paying a premium, the power generation source has to be acceptable to the public,” Mr Smedley said.
WA’s Natural Power is generated through solar and wind power farms, a hydro electric unit at Wellington Dam near Collie and biomass.
Mr Smedley said generators had to find new sources to meet their green energy quota every two years.
This is to encourage the creation of new renewable energy sources.
He said Western Power had to show an auditor it was delivering enough renewable electricity to meet customer demands.
“You can’t segregate electrons,” Mr Smedley said
The Federal Government wants two per cent of the electricity supplied to Australians to come from renewable energy sources.
This regulation, yet to be ratified by Parliament, will apply to all electricity retailers.
Electricity drawn from “green” sources is more expensive than electricity generated through traditional means.
However, according to the Green Electricity Market Project, customers are prepared to pay the premium for green power.
Consumers can buy green electricity through a market-based scheme started by the New South Wales Sustainable Energy Develop-ment Authority (SEDA).
They have to pay a premium for the privilege.
Due to the common grid in the eastern states, the scheme quickly expanded to include Victoria, Queensland and South Australia.
Western Australians have access to the scheme through Western Power’s Natural Power. The WA Office of Energy accredits it to the scheme.
Both WA residential and business consumers pay a 3¢ per kilowatt hour premium if all their electricity comes from green sources. They can choose the level of subscription.
According to Western Power, taking a 25 per cent subscription would add about 68¢ a week to an average residential power bill.
To become accredited to the SEDA scheme, a generator has to meet strict guidelines. Solar and wind generation systems are acceptable. Only existing hydro-power schemes can be used.
Certain biomass generators are allowed. Either the biomass is burnt to produce power or the methane from rotting organic matter in rubbish tips, sewage works or other waste treatment works is burnt to generate power.
Office of Energy built environment and energy efficiency manager Dennis Smedley said the guidelines had to be strict because it was a market-based scheme.
“Because consumers are paying a premium, the power generation source has to be acceptable to the public,” Mr Smedley said.
WA’s Natural Power is generated through solar and wind power farms, a hydro electric unit at Wellington Dam near Collie and biomass.
Mr Smedley said generators had to find new sources to meet their green energy quota every two years.
This is to encourage the creation of new renewable energy sources.
He said Western Power had to show an auditor it was delivering enough renewable electricity to meet customer demands.
“You can’t segregate electrons,” Mr Smedley said