Buyers not warming to green energy

14 June 2013

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14 June 2013 | Adam Leach

Large energy consumers are yet to develop an appetite for greener sources of power with a large majority either not planning to purchase any, or only open to the idea if it does not cost extra.

A survey conducted by EnergyQuote JHA and based on responses from 50 energy buyers with a spend of up to €20 million (£17 million), found that almost half - 49 per cent - of respondents have no plans to purchase green energy. Of those open to the idea, the majority, 32 per cent, would only do so if little or no extra cost was involved, leaving just 19 per cent that have buying green energy on their agenda.

This lukewarm support for cleaner energy was attributed to reluctance among buyers to add any avoidable costs to bills as prices continue to increase in both renewable and traditional power sources. Just under half of buyers, 49 per cent, expect further increases in prices over the next two years compared with more than a third, 39 per cent, predicting stagnation and just 9 per cent expecting a drop.

Gary Worby, managing director at EnergyQuote JHA, said: “Our survey indicates that rising energy costs are here to stay. This means that it is essential for European energy consumers to urgently adopt a formal risk management strategy that fully reflects all available purchasing options and opportunities.”

The survey also found that despite continued volatility in the global economic climate, more than two thirds, 72 per cent, of buyers either don’t have a risk management policy or have not reviewed it for some time.

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