Green Power Marketing in Retail Competition: An Early Assessment

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Green power marketing—the business of selling electricity products or services based in part on their environmental values—is still in an early stage of development. This Topical Issues Brief presents a summary of early results with green power marketing under retail competition, covering both fully competitive markets and relevant direct access pilot programs. The brief provides an overview of green products that are or were offered, and discusses consumers' interest in these products. Critical issues that will impact the availability and success of green power products under retail competition are highlighted. Some of the key observations and conclusions of the work include:

  • Experience from pilot programs in New Hampshire, Massachusetts, and Oregon—while insightful in many respects—should not be broadly generalized.
  • Green power markets have developed in all four states currently open to full competition.
  • The availability and success of green power products will hinge on several factors, including the regulatory rules and public policies established at the onset of restructuring
  • Environmental disclosure requirements and certification programs may also play an important role in the success of green power markets.
  • Evidence to date shows that green products have had some success in markets newly opened to competition.

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