Why does green energy cost more? Why does green power have a premium?
Green energy is more expensive to produce than dirty power, but is more valuable as it does not pollute our air or our water. When we buy from our producers, we pay them a premium for green electricity, which acknowledges its greater value and signals the market to make more. Bullfrog Power also uses a portion of the green premium to help develop new, renewable generation. A growing number of new turbines have been commissioned as a direct result of the demand for green power from Bullfrog’s commercial and residential customers. In the longer term, with advances in renewable power generation technologies, and with increased demand for renewables, production is likely to become more cost-effective. The price difference between green and dirty power should therefore reduce over time.
Green energy is more expensive to produce than dirty power, but is more valuable as it does not pollute our air or our water. When we buy from our producers, we pay them a premium for green electricity, which acknowledges its greater value and signals the market to make more. Bullfrog Power also uses a portion of the green premium to help develop new, renewable generation. A growing number of new turbines have been commissioned as a direct result of the demand for green power from Bullfrog’s commercial and residential customers. In the longer term, with advances in renewable power generation technologies, and with increased demand for renewables, production is likely to become more cost-effective. The price difference between green and dirty power should therefore reduce over time.
