August 15, 2003—Through interviews with utility green-pricing program administrators and end users, Platts Research and Consulting has gleaned the most compelling business arguments currently driving green power sales to the commercial and industrial sectors.
The context for the green power discussion, according to a consensus of the report’s interviewees, is that seven years into the advent of premium-priced green power, it’s still tough to sell businesses on green power through the usual approach to selling products and services—a return on investment.
Part of quantifying benefits for businesses is an accounting trend that has emerged, which study author Barry Friedman says offers a key to the future of the market. “Because of the growing acceptance for methodologies that quantify the benefits of the earned media, or free press, that can accompany a green power purchase, gradually the accounting for the green energy premium is being absorbed, or at least shared, by the public relations folks, rather than being borne solely on the back of the facility or energy manager’s budget. When you stop and consider the enhanced credibility of a positive news story over that of an advertisement, you can see why marketing professionals are coming to understand the value here.”
The report analyzes this and all of the benefits that comprise the business case for green energy, identifying those that have the best chance of driving sales. In addition to public relations, other business case elements include the use of green energy as a hedge against escalating electricity rates, as a way to cater to consumers concerned about sustainability, and as a method of reducing global warming impact.
