Tuesday, 10 May 2022 17:32

WSROC partners on 100% renewable PPA

Array of solar panels Array of solar panels Adam Hollingworth


WSROC’s Western Sydney Energy Program has secured another win, facilitating the development of a 100% renewable power purchase agreement (Renewable PPA) through Local Government Procurement (LGP).

The Renewable PPA harnesses the collective buying power of councils, to purchase 100% renewable power at competitive rates, allowing councils to reduce energy costs whilst meeting their emissions targets.

Blacktown and Blue Mountains City Councils took a lead role in scoping the PPA in partnership with LGP. Critical criteria in the PPAs development included:

  • 100% renewable energy
  • Ability to accommodate local government’s wide range of energy sites including large and small (SME) sites, as well as street-lighting.
  • Minimising financial and operational risks for councils.

The LGP Renewable PPA is now active, with 34 NSW councils signed up to date. The arrangement secures a 7-year 100% Renewable PPA with wind farm owner-operator, Iberdrola. No upfront fee for participation is required.


Key features of the LGP Renewable PPA:

Allows councils to enter a PPA under a single contract: Most Renewable PPAs require councils to sign two separate contracts; one for retail and another for renewable energy generation. Having two separate contracts for the same service increases risks for councils including: operational risk in the management of the contract, supply reliability and reputational risk if the generator does not generate power leading to council not being able to claim renewable credentials. In this arrangement, LGP has secured energy from the Collector Wind Farm for a period of 7 years through a single fixed price contract.

Includes small sites: Obtaining renewable energy for SME sites is quite challenging because this is not a standard offering by energy retailers. LGP’s renewable energy tender allows councils to procure all three categories of electricity (large, small, streetlighting) at once, councils do not need to look for other options to offset emissions at their small sites.

Is an integrated offering: Iberdrola, the successful tenderer, owns and operates the Collector Wind farm, thereby, minimising supply risk and market exposure to participating councils of obtaining renewable energy that’s high in demand.

Includes commitment to invest in new renewable projects: Iberdrola has a robust commitment to growing renewable energy assets with a strong investment pipeline. Future assets that should come online in the next 2-3 years include Woodlawn, Bogondora, Bungendore, Flyers Creek windfarms and Narrandera solar farm; this provides comfort to the community that councils’ electricity spend is being reinvested in new renewable energy projects and reducing the reliance on fossil fuel powered electricity generators. This cannot be guaranteed through another retailer that is also investing in the fossil fuel industry.



For more information contact Local Government Procurement.

W: www.lgp.org.au

E: This email address is being protected from spambots. You need JavaScript enabled to view it.


Last modified on Wednesday, 11 May 2022 11:15