AGL cleans up power market as renewable demand soars

Sydney Morning Herald
Tuesday 28/11/2006 Page: 16

Consumer demand has forced AGL's GreenPower scheme to grow by 88 per cent in the 12 months to June. The public's greater demand for cleaner power is forcing the gas and electricity provider to investigate more renewable-energy sources. In the past year, the company has pursued clean-energy initiatives to make it a leader in the field of green energy.

After a number of acquisitions, AGL now sources nearly 37 per cent of its generation capacity from renewable-energy sources which produce no greenhouse-gas emissions. Already more than 35,000 AGL customers have switched to accredited GreenPower.

"Generally most of the green power people buy comes from hydro-electricity schemes, wind farms and landfill-gas facilities," says AGL's manager of carbon and renewable strategy, Tim Nelson. "What we are seeing in the marketplace is an interest and an awareness of green power and its effect on climate change."

The power company is increasing its portfolio by buying a number of green-energy sources, including the 140-megawatt Bogong hydroelectric project in Victoria. The plant is set to be the largest of its kind to be built in Australia in the past 25 years. AGL has also invested in the 95-megawatt Hallet Wind Farm project in South Australia. Once again it is the biggest facility of its kind in the country.

"The company perspective is consistent to where we have been positioning ourselves in the market," Nelson says. "AGL is making some serious decisions about where we are sourcing our energy, which are all producing low emissions. "If you look at projects we are announcing to build, they are all renewable-energy sources. Of course it is a transitional process to move our customers to accredited Green Power but AGL has always been focused on the outcome." Nelson says the progressive nature of AGL's business strategy will mean significantly fewer greenhouse emissions.

And the education of consumers is a large part in trying to convert its energy users to accredited green power sources. As part of its retail product advertising, AGL is using considerable resources to promote renewable energy. Its Energy Matters campaign is a grassroots program to educate staff and customers on how energy efficiency can help improve the environment.

The company practises what it preaches by powering its offices with 100 per cent greenhouse neutral energy sources. It also offsets 20 per cent of the greenhouse gas emissions from its fleet of vehicles.