FAQ
Renewable Energy
What is renewable energy?
Renewable energy is energy derived from sources that cannot be depleted or can be replaced such as
solar, wind, biomass (waste), wave or hydro. Clean, renewable sources don’t produce greenhouse
pollution.
What is solar energy?
Solar energy is Australia’s largest energy resource: the average amount of solar energy that falls on
Australia is about 15 000 times the nation’s energy use. The nature of solar energy, however, is that it
is an intermittent and diffused source – it’s not available on cloudy days or at night - and it is not
concentrated.
Solar thermal energy is that part of the solar spectrum that provides heat. Solar water heaters use
solar thermal energy to heat water. Photovoltaic cells, known commonly as solar cells, convert the
energy from sunlight into direct current electricity, which can be used as is or converted into
alternating current similar to the electricity available from the grid.
What is wind energy?
Wind energy is in fact a form of solar energy. Wind energy represents 0.25 % of the sun’s energy
reaching the lower atmosphere. Wind comes from the movement of air resulting from thermal
gradients and the earth’s rotation. Depending on climatic conditions and surface topography, wind can
vary significantly in intensity over a day, over a season, or over a year.
The basis of a successful wind energy facility - or wind farm - is to find a site which has a strong and
steady wind. A good wind resource is usually characterised by an average wind speed of over 6.5
metres per second (23 km/hr).
How are landfills used for energy?
Organic matter, like in rubbish tips, breaks down to produce methane gas. Capturing and burning this
methane enables generation of energy. This prevents methane escaping into the atmosphere as
methane produces over 20 times the amount of greenhouse pollution than carbon dioxide.
How can burning biomass be considered renewable energy?
Plant matter uses the renewable resources water, carbon dioxide and sunlight (solar energy) through
photosynthesis to grow. Burning this material converts the energy stored from the sun into electricity
and produces carbon dioxide. This makes the energy process carbon neutral (i.e no carbon is created
or destroyed in the process). However, this energy is displacing the need to burn non-renewable fossil
fuels such as coal and therefore has a net greenhouse benefit. In addition, most biomass projects use
waste products from agricultural processes, such as bagasse from the sugar industry, which is
traditionally burned inefficiently to dispose of the waste.
What types of hydro power are included within Green Power?
Hydro electric generators that are approved for use within Green Power are those that have minimal
impact on the surrounding environment, such as installing a generator in a fast flowing stream or fitting
an existing dam or weir with a power generator. Hydro generators that involve the construction of new
dams that divert water from one river to another or do not allow for adequate environmental flows are
not approved within the Green Power Program. The Snowy Mountains Hydro Electric scheme is not
approved for use within the Program.
What energy sources are used in Green Power?
Green Power is produced by the sun, wind, water and waste power.
Info as per June 2006. See website www.greenpower.nsw.gov.au for updated information.
Is renewable energy reliable? Is there enough to supply me?
All electricity produced from electricity generators (coal or renewable energy) are provided into an
electricity pool or the grid. It is the pool and grid operators that ensure reliability to customers,
coordinating supply with demand - they factor in when certain generators are operating or idle.
Therefore electricity from specific renewable energy generators does not directly go to individual
houses and does not impact reliability.
As demand for accredited Green Power increases from customers, energy suppliers will buy more
renewable energy from new renewable energy generators. Your investment into accredited Green
Power will feed more energy from clean renewable energy sources into the grid that services your
home.
Green Power
What is Green Power?
Green Power is renewable energy that is bought by energy suppliers on behalf of their customers and
independently audited and verified by the National Green Power Accreditation Steering Group.
What is non-accredited renewable energy?
Non-Accredited Renewable Energy products, or NAREs, are electricity products promoted in some
areas as other forms of green or zero-carbon energy. There is no independent audit process in place
to monitor NAREs which means consumers can’t be sure that their contribution is making a
difference. The Green Power ‘tick’ of approval guarantees the energy is from clean, renewable
sources.
How do I join up to Green Power?
Households can call the customer service number on their electricity bill and ask to join up to an
accredited Green Power product. Remember each energy supplier will have their own name for the
accredited Green Power product they sell, such as ‘GreenLiving’ or ‘GreenEarth’, and have different
options for the levels of Green Power you can purchase.
What is the Green Power Guarantee?
The National Green Power Accreditation Steering Group (NGPASG) accredits Green Power products
to ensure your contributions are used to purchase electricity from approved renewable resources. To
gain government accreditation, your electricity company has agreed to meet a series of strict
requirements. When you see the Green Power ‘tick’ of approval, you can be assured your electricity
company has met all of these set requirements.
How can I be assured that when I choose Green Power, my energy suppliers actually source
my electricity from renewable sources?
All accredited generators and electricity suppliers are audited each year. Click here to view a list of
accredited Green Power generators. Reports are publicly available which enable everyone to review
the products available and to verify that net electricity purchases are being invested into growing
demand for new renewable energy sources. Click here to see these reports.
Accredited Green Power purchases are additional to any other requirements on electricity retailers to
purchase renewable energy.
Will my home actually receive Green Power?
It is not possible to track the flow of a unit of electricity. All mains electricity is presently purchased
from the electricity pool or grid and the bulk of this energy comes from conventional power stations.
Every unit of energy purchased by Green Power customers however, will be supplied into the grid
from accredited renewable sources and, therefore, means one less kilowatt hour of energy generated
from conventional sources. No changes to cabling or power poles is required.
Info as per June 2006. See website www.greenpower.nsw.gov.au for updated information.
Can businesses use Green Power?
All businesses and industry can buy Green Power from an energy supplier licensed in their state of
operation. Purchasing Green Power entitles a business to use the Green Power logo, which provides
a distinct marketing advantage and helps a business achieve its environmental objectives.
If you are interested in purchasing Green Power for your business and would like further information,
you can order a free copy of the Green Power Business Guide (PDF 424 KB).
How many customers are there in Australia?
Over 125 000 households in Australia and over 6 000 businesses currently purchase Green Power
products. Every Green Power customer is playing an important role in driving increased demand for
renewable energy.
What is in it for me?
If you choose to purchase accredited Green Power you can be confident that you are contributing to
reducing greenhouse pollution and supporting the development of the renewable energy industry. This
means that you are helping to reduce the impact of climate change and global warming.
How much Greenhouse pollution will Green Power save in the average home?
An average Australian home that has subscribed to 100% accredited Green Power (including off peak)
would save approximately seven tonnes of greenhouse pollution every year which is equivalent to
removing almost two cars from the road.
Does Green Power apply to my off peak elecricity?
Electricity companies offer their own accredited Green Power products. You can choose what
percentage of Green Power you would like to purchase. Not all include off peak consumption in their
accredited Green Power. If your retailer's Green Power product does not include off peak energy then
your off peak energy is sourced from standard power (mostly fossil fuel based sources, i.e coal). If you
are looking to purchase an accredited Green Power product and would like to find out what is
involved, ask your retailer if their product includes off peak energy.
What is off peak electricity?
Off-peak electricity is electricity bought at a reduced tariff (price), during off-peak periods. Residential
off-peak customers usually use off-peak electricity to heat water at night, for use throughout the day.
While buying off-peak energy is cheaper, it does not result in reduced energy consumption. Water
heaters consume around 25 - 40 % of your household’s energy (depending on which state you live in).
Is Green Power 100% renewable energy?
Electricity companies can have a range of Green Power products available. Some products have a
small proportion of accredited Green Power ranging up to 100% accredited Green Power. Electricity
companies are obliged to be clear about how much accredited Green Power is in their product.
How much does Green Power cost?
There are many accredited Green Power products to choose from – one to suit every household and
budget. Consumers can choose what proportion of their electricity they want to come from Green
Info as per June 2006. See website www.greenpower.nsw.gov.au for updated information.
Power – if people choose to source 100 per cent of their power from renewable sources it will cost
about an extra $5 a week, if they choose a smaller percentage this can be done at no extra cost.
How does Green Power work?
Energy suppliers who sell accredited Green Power products buy electricity generated from accredited
renewable energy generators on your behalf and feed it into the National Electricity Grid.
How can I be assured that when I choose Green Power, my energy suppliers actually source
my electricity from renewable sources?
As part of the Green Power program all accredited generators and electricity companies are audited
each year. Reports are publicly available which enable everyone to review the accredited product and
to verify net electricity purchases are being invested into growing demand for new renewable energy.
Green Power is additional to any other requirements on electricity companies to purchase renewable
energy.
Shouldn’t the government pay for this?
Governments have allocated budget towards increasing renewable energy, however it can only stretch
so far. State Governments facilitate and provide financial assistance for many renewable energy
projects, which helps reduce prices for renewable energy. The continued consumer support will drive
governments to increase their focus and developments into the industry.
Is the Green Power Program driven by a government regulation?
No. Green Power energy suppliers choose to gain accreditation from the National Green Power
Accreditation Steering Group to sell Green Power to their customers. There are no requirements for
them to do so, although all Australians have access to an accredited Green Power product.
Green Power and the Federal Mandatory Renewable Energy Target (MRET)
What is the AUSTRALIAN GOVERNMENT’S Mandatory Renewable Energy Target (MRET)?
The Australian Government’s mandatory renewable energy target was introduced on 1 April 2001. It
was created as a result of the passing of the Commonwealth Renewable Energy (Electricity) Act 2000.
This Commonwealth legislation requires the generation of 9,500GWh of extra renewable energy each
year by 2010.
Why have a mandatory target for renewable energy?
Australia has one of the highest greenhouse pollution rates per capita in the world. A good deal of this
greenhouse pollution comes from burning coal to produce electricity. The new law is designed to
stimulate investment in renewable energy generation and technologies, and ultimately reduce
greenhouse pollution.
Because the legislation forces increased demand for renewable energy in Australia, we should see
more renewable energy generators being established, making the production of renewable energy
less expensive and more commonplace.
What is a REC?
Renewable Energy Certificates (REC) are created by electricity generators when new renewable
energy is generated and registered by the generator for sale on the green energy market. To comply
with the legislation, electricity companies have to purchase and surrender a certain amount of RECs
(REC=1MWh) to the Office of Renewable Energy Regulator depending on their volume of electricity
Info as per June 2006. See website www.greenpower.nsw.gov.au for updated information.
sales. RECs are traded on a national market and there is a $40 penalty for suppliers who do not
comply.
How does Green Power interact with MRET?
Retailers are already obliged to purchase a proportion of their electricity from renewable sources
through the Commonwealth’s Mandatory Renewable Energy Target (MRET). Any green power
purchases are over and above those minimum requirements. More information about MRET is
available from www.orer.gov.au.
Government role in Green Power
What is the National Green Power Accreditation Steering Group?
The National Green Power Accreditation Steering Group is the body that represents the different State
Government agencies that are working together to offer the Green Power Accreditation program. The
Department of Energy, Utilities and Sustainability in NSW is the current project manager on behalf of
the steering group.
What is the Government doing to assist Green Power?
Through the National Green Power Accreditation Steering Group, the various State Governments offer
accreditation to energy companies that comply with the Green Power requirements. This provides
independent assurance to customers for Green Power. Through the NGPASG, the State
Governments promote and help energy suppliers to promote Green Power accredited programs to
increase participation and therefore increase demand.
Contestability
What does contestability mean for me?
As of July 2003, Full Retail Contestability (FRC) has been introduced in the energy markets of NSW,
Victoria, South Australia and the ACT. This means that households and small businesses in these
states are able to choose the supplier from whom they buy their energy. The aim is to allow all
electricity and gas customers to have greater choice in their energy supply, and be able compare
prices and services. This includes finding the best Green Power Product for you.
If you choose to shop around you might find a deal that is more attractive, although before making a
decision to change, try to get as much information as you can from your prospective energy retailer.
You should be aware that if you change, you are only changing your retailer (the company which sells
you energy and bills you for it). You will not be changing your network provider (the company which
delivers energy to you through the existing poles and wires).
Steering Group
The NGPASG comprise representatives from the participating state government agencies and
departments and non-financial members.
These agencies may also coordinate information and education activities within their jurisdiction to
support the efforts of retailers. Such campaigns may include advertising, joint promotional events,
seminars or provision of information in hard copy or online.
The NGPASG encourages all stakeholders to participate in the growth and evolution of the Program.
Role of the Program Manager
A representative of the National Green Power Steering Group is nominated to be Program Manager
which is currently the Department of Energy, Utilities and Sustainability (DEUS), New South Wales.
DEUS is responsible for:
Info as per June 2006. See website www.greenpower.nsw.gov.au for updated information.
1. Initial and ongoing accreditation of Green Power products and generators.
2. Reporting—quarterly and annual audits.
3. Provision of information to participating agencies, retailers, generators, customers and
consumer groups.
4. Coordinating consultation and central contact point for stakeholders (i.e. environmental and
consumer organisations, retailers and generators) with regard to changes to the Program or
issues as they arise.
5. Processing customer logo license applications.
6. Maintaining the national website at www.greenpower.gov.au
7. Other projects and activities as they arise.
FREQUENTLY ASKED QUESTIONS ON GREEN POWER
Renewable Energy
What is renewable energy?
Renewable energy is energy derived from sources that cannot be depleted or can be replaced such as
solar, wind, biomass (waste), wave or hydro. Clean, renewable sources don’t produce greenhouse
pollution.
What is solar energy?
Solar energy is Australia’s largest energy resource: the average amount of solar energy that falls on
Australia is about 15 000 times the nation’s energy use. The nature of solar energy, however, is that it
is an intermittent and diffused source – it’s not available on cloudy days or at night - and it is not
concentrated.
Solar thermal energy is that part of the solar spectrum that provides heat. Solar water heaters use
solar thermal energy to heat water. Photovoltaic cells, known commonly as solar cells, convert the
energy from sunlight into direct current electricity, which can be used as is or converted into
alternating current similar to the electricity available from the grid.
What is wind energy?
Wind energy is in fact a form of solar energy. Wind energy represents 0.25 % of the sun’s energy
reaching the lower atmosphere. Wind comes from the movement of air resulting from thermal
gradients and the earth’s rotation. Depending on climatic conditions and surface topography, wind can
vary significantly in intensity over a day, over a season, or over a year.
The basis of a successful wind energy facility - or wind farm - is to find a site which has a strong and
steady wind. A good wind resource is usually characterised by an average wind speed of over 6.5
metres per second (23 km/hr).
How are landfills used for energy?
Organic matter, like in rubbish tips, breaks down to produce methane gas. Capturing and burning this
methane enables generation of energy. This prevents methane escaping into the atmosphere as
methane produces over 20 times the amount of greenhouse pollution than carbon dioxide.
How can burning biomass be considered renewable energy?
Plant matter uses the renewable resources water, carbon dioxide and sunlight (solar energy) through
photosynthesis to grow. Burning this material converts the energy stored from the sun into electricity
and produces carbon dioxide. This makes the energy process carbon neutral (i.e no carbon is created
or destroyed in the process). However, this energy is displacing the need to burn non-renewable fossil
Info as per June 2006. See website www.greenpower.nsw.gov.au for updated information.