Energy Sustainability in Australia
We have all seen the advertisements and articles for renewable energy in Australia ensuring a cleaner country for the future and sustainability of our energy resources. It seems that the majority of energy retailers are pushing renewable energy and sustainability but is it really what Australians want?
According to the Australian Government Department of Resources Energy and Tourism renewable energy is not a key driver for consumers. Renewable energy only accounts for 2% of Australia’s energy supply and it is only forecasted to reach 8% of Australia’s total energy consumption by the year 2029 far from the current goal of renewable energy making up 20% of Australia’s consumption by 2020. Coal and oil will continue to be the primary resource due to its affordability.
So why are the forecasts so far off the goal, it is not due the lack of awareness, Origin Energy is currently running its Sustainability Drive campaign promoting sustainable energy and to help build ‘green’ neighbourhoods. Also other major retailers including Tru Energy, Red Energy, AGL are all pushing GreenPower accredited energy plans.
The simple answer is price; Financial Review reported that surging electricity prices are turning consumers off “green-power”, revealing a slump in the number of households prepared to pay a premium for renewable sources of energy. The price of the average energy bill in Australia is another common story for the media at the moment however many energy retailers still seem to be focused on Green Energy, going against consumer behaviour and demands. For an average 2-3 year contract, consumers can expect to pay 10-11% more for a 100% green energy package when compared with the cheapest package available from the same retailer.*
Though Lumo Energy offers its clients the ability to have either 10% or 100% GreenPower packages and understands the need and benefits of producing and consuming energy from renewable resources, we also understand that it may not be what the majority of Australians are after given the recent economic climate.
Service, price and membership benefits are major draw cards for consumers, which is why Lumo Energy’s call centre is open from 8am – 8pm Monday to Friday and 8am – 5pm Saturdays. It is also why we have some of the most competitive energy rates across South Australia, Queensland, New South Wales and Victoria and why our clients can enjoy rewards anytime with our Lumo Advantage online shopping rewards.
Let us know your thoughts, and if are you prepared to pay extra for green energy.
*Statistics taken from www.switchwise.com.au based on the average household of 4 people in a 3 bedroom house located in Melbourne, Victoria, 3011.