Green power schemes: The need for a legislative base

Abstract

The gradual substitution of fossil fuels by renewable energy resources for electricity generation is one of the most effective means of reducing atmospheric carbon emissions and resolving the climate change issue. While compulsory measures would be the most effective, considerable interest has been generated in voluntary ‘green power’ schemes, whereby electricity consumers pay an additional premium on their electricity supplies which is used to purchase electricity from renewable energy suppliers. Such schemes originated in the United States and are now widespread in Australia. This article examines the advantages and disadvantages of such schemes from a consumer perspective and considers various legislative options to overcome the major identified problems. The principal reform proposed is the introduction of legislation that would codify green power schemes. This could be achieved by the addition of a new part to the recently enacted Renewable Energy (Electricity) Act 2000 (Cth).