GreenPower® |

GreenPower Stakeholder Forum 2018

Welcome to…

GreenPower® |

What is GreenPower?

• The program manager:

• Administer the Program on behalf

of the participating jurisdictions

• Accredit the renewable energy

generators

• Accredit the renewable energy

products sold by electricity retailers

• Ensure the Program Rules are met

• Verify GreenPower sales through

auditing Large-scale Generation

Certificates (LGCs)

2

GreenPower® |

GreenPower - 21 years and counting

3

$1.2B Invested

450MW of capacity

40,000+ followers on social media

GreenPower® |

Market overview

• Supply side:

• There are currently more than 150 accredited

generators across Australia

• Demand side:

• Customer numbers and sales are declining

Accredited Renewable Energy 4

0

10,000

20,000

30,000

40,000

50,000

60,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

04 05 06 07 08 09 10 11 12 13 14 15 16 17

Custo

mers

Sale

s (

MW

h)

GreenPower Commercial Growth

Sales (MWh) Customer number

0

200,000

400,000

600,000

800,000

1,000,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

04 05 06 07 08 09 10 11 12 13 14 15 16 17

Custo

mers

Sale

s (

MW

h)

GreenPower Residential Growth

Sales (MWh) Customer number

GreenPower® |

• Strong reputable brand

• Gov’t backing

• Auditing

• Attractive messages to

communicate

• Benefits (logo, website, NABERS,

Green Star, NCOS)

• Additional to the RET

SW

OT

STRENGTHS WEAKNESSES

THREATS OPPORTUNITIES

• Budget constraints (marketing)

• Cost of GreenPower/premium product

• Provider apathy (in terms of marketing)

• No emissions additionality (Kyoto)

• Lack of direct consumer engagement

• Lack of tangibile benefits

• GreenPower PPAs

• GreenPower Connect

• Rising prices (electricity & LGCs)

• Competitors (offsets, behind the

meter solar)

• Emmissions additionality

Accredited Renewable Energy

GreenPower® |

GreenPower relevance in today’s market

• To provide customers with a simple, credible option to

voluntarily support Australian renewable energy and to

reduce their environmental impact

• To encourage growth in consumer demand for renewable

energy.

• To contribute to the installation and operation of new

renewable energy generators across Australia, and achieve

reductions in greenhouse gas emissions, beyond any

mandatory requirements

Accredited Renewable Energy 6

GreenPower® |

New GreenPower Initiatives

GreenPower for Businesses Guide

Stakeholder Advisory Group

Accredited Renewable Energy 7

“Over 25,000 Australian

businesses have made the

conscious choice to reduce

their impact on the

environment and help

Australia’s renewable energy

sector by using GreenPower”

“To provide Strategic

Direction to National

GreenPower Steering

Group”

GreenPower® |

Strengths of GreenPower

• Promoted and delivered by almost all of the electricity retailers.

• Over 98% of energy customers have access to GreenPower.

• Existing household and business customer base of approx. 250,000 (2017)

• One of the most recognised energy brands in Australia

• The only government accreditation program for voluntary renewable energy in Australia

• Currently the only the mass market product to enable renters and apartment owners to

purchase renewable energy that contributes to lowering the emissions of the electricity sector.

• Provides a credible renewable energy product in a changing and highly complex renewable

energy market to avoid double counting and green washing

Accredited Renewable Energy 8

GreenPower® |

Challenges for GreenPower in today’s market place

• GreenPower customers peaked in 2007 – 2008 and, since

then the customer numbers have been dropping

• Over the last 10 years, a number of influences have

impacted GreenPower sales:

• Electricity prices going up

• Uptake of behind the meter solar

• Other options for customers to adopt renewable energy

i.e. P2P solar; virtual solar; carbon offsets; Solar PPAs

Accredited Renewable Energy 9

GreenPower® |

GreenPower Statistics 1

Accredited Renewable Energy 10

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Ele

ctr

icity (

MW

h)

Calendar Year

Comparison of GreenPower consumption and rooftop solar PV generation

GreenPower residentialconsumption

Solar PV generation

RET introduced NCOS launchedRooftop solar PV

installations increase

Carbon Farming Initiative

introduced

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Consum

ption (

MW

h)

Calendar Year

Total GreenPower consumption

Residential(audited)Commercial(audited)NSWGovernmentNABERS

0.8

1.3

1.8

04 05 06 07 08 09 10 11 12 13 14 15 16

MW

h/c

usto

mer Sales per customer (Residential)

10

30

50

04 05 06 07 08 09 10 11 12 13 14 15 16 17

MW

h/c

usto

mer

Sales per customer (Business)

BNEF predicts that behind the meter solar

will produce approx. 37GWh by 2040

GreenPower® |

Why GreenPower is still a choice for Businesses

• Achieve sustainability goals

• Reducing THEIR impact on the environment

• Supporting Australia’s renewable energy sector

• Reporting/ratings – emissions targets, sustainability commitments

• NABERS

• Green Star Performance Rating

• NCOS zero emissions electricity

• Voluntary reporting under NGERS

• Attract environmentally conscious customers

Accredited Renewable Energy 11

GreenPower® |

Energy management hierarchy

Accredited Renewable Energy 12

Offsite RE

Onsite RE

Energy efficiency

“Business installations of solar power increased by 60 per cent over 2016-2017, with over 40,000

commercial solar power systems now installed in Australia. The capacity of businesses to

generate their own solar energy has doubled since 2016” RENEWABLES & BUSINESS:

CUTTING PRICES & POLLUTION, Climate Council 2018

GreenPower® |

GreenPower Power Purchase Agreements (PPAs)

• GreenPower LGC-only PPA

• GreenPower Bundled PPA

• Sleeved PPA

• Virtual/Finance PPA

• GreenPower Connect

• Same as above two options but with a

flat GreenPower administration fee

• Only eligible for new projects

Accredited Renewable Energy 13

“Over 120 global corporates have committed

to procure 100% of their energy from

renewable sources, and are pressurizing

their supply chains to do the same.

Over 50 of these companies have significant

operations in Australia, and this helped drive

a record 430MW of corporate PPA signing in

the country in 2017”

Bloomberg New Energy Finance, The Forces Pushing Australia to Transition 2018

GreenPower® |

Thank you