Before the decade is over, Australia will have a Renewable Energy Target of 20 per cent renewable generation by 2020 and an Australian emissions trading scheme. Climate change is here and the nation’s energy retailers are moving rapidly to get ahead in a carbon constrained economy and keep pace with consumer demand for sustainable energy.

From their generation assets and electricity and gas packages to their media campaigns, Australia’s energy providers are moving into the clean energy space.

Investment in green energy generation

In the past six months, AGL, Origin Energy, Meridian Energy and TRUenergy have invested heavily in wind, solar, geothermal and gas projects, with investments in the Macarthur Wind Farm, Hallett 3 and a solar power station being developed in northern Victoria.

Origin Chairman Kevin McCann said recently that the company has developed a set of valuable opportunities in renewable generation.

He said “Our growing CSG reserves, lower emissions intensity of gas-fired generation, a portfolio of renewable energy opportunities, and our market leadership in retail green energy position us well for a carbon constrained future.”

TRUenergy Managing Director Richard McIndoe told EcoGeneration that the company understands that its role in mitigating climate change requires not only significant changes to the way it conducts its business but also the technologies it uses to generate energy. As such, it is increasing its share of renewable energy and direct investment in low-emission technologies such as solar, wind and high efficiency gas, through a number of generation projects.

Asked what energy sources are seen as the most viable at the moment, Mr McIndoe said that the company is led by the market. “As a business, we cannot be biased towards one form of technology over another,” he explained. “Our approach is to let the market decide the most effective technological solution to climate change through the introduction of a supportive policy framework that encourages research and development of all types of technological options to reduce emissions and meet rising energy demand with reliable supply.”

Major energy retailers are not the only companies that have invested heavily in clean energy generation. Investment bank Babcock & Brown (BNB) has recently signed an agreement with Babcock & Brown Wind Partners Group (BBW), enabling both businesses to capture and share potential synergy benefits. BNB disclosed that its gross wind energy development pipeline is currently in excess of 16,000 megawatts (MW) to be delivered over the next eight years. In addition, BNB has a portfolio of 550 MW currently under construction and 1,090 MW in operation around the world.

Driving consumer demand

Retailers across the country are also involved in promoting low emissions and renewable energy use to an increasing demand for sustainable energy. In New South Wales Alinta AGL has launched a campaign, Natural Gas. The natural choice, to promote natural gas use. The campaign is not about promoting retailers but the resource itself. The television and print campaign, Barry’s got Gas, is the first on-air advertising and marketing campaign since the 1950s that focuses on the benefits of natural gas.

More directly, retailers are promoting the use of green energy, offering increasing incentives to encourage consumers to connect to ‘green’ power. One example is ActewAGL’s Greenchoice 100 per cent package, which now includes the purchase and installation of electric and natural gas boosted solar hot water systems. In 2007 Origin and the Australian Football League formed an official partnership to help the AFL become the first carbon neutral sporting league in the world.

BNB CEO Phil Green said “The wind energy generation industry is a very attractive business and we remain fully committed to the development of our leading global position in this business in conjunction with BBW.”

Energy Australia Managing Director George Maltabarow believes it is important to shift the industry focus from industry sales to energy efficiency. He said EnergyAustralia will strive to help its customers use less energy, use more green energy and will provide new products and information to help its customers reduce their carbon footprint.

The role of clean energy policy

A key to assuring Australia’s power supply in a carbon constrained future is having an open mind about energy generation.

Mr McIndoe said “Energy policy needs to be open minded and consider all potential technologies equally, as only this will create the best environment for bringing about the development of the most effective and most affordable solutions to climate change.”

As for TRUenergy’s future clean energy investment, Mr McIndoe said that there is no single solution and that proven and developing clean energy technologies are on the company’s investment agenda.

“Whilst we will continue to pursue wind power opportunities and other proven technologies, we will also invest in technologies such as solar that are at an earlier stage in their life cycle and have significant potential to supply our energy requirements in the future. We will also investigate strategies to reduce our coal fired emissions through retrofit technologies such as coal drying and carbon capture and storage.”

Only time will tell what clean energy technologies and projects will attract investment from big business. Despite some uncertainty, as Australia makes the transition to a carbon constrained future, the clean energy market is growing, big business is jumping on board and the possibilities for advances and change are great.