Procurement Australia's new Power Purchase Agreement

Procurement Australia has signed a 10-year deal with Alinta Energy to facilitate our members to secure renewable energy to assist them with their sustainability agendas and desired outcomes, both now and in the future.

Building flexible energy solutions that can work for everyone can seem an insurmountable task. Through the contract between Procurement Australia and Alinta Energy, a new flexible, member by member approach to large-scale, renewable energy supply has been brokered and delivered.

As one of the largest aggregators in Australia, Procurement Australia is renowned for its ability to find the answers to difficult supply questions. Alongside sustainability-driven energy provider Alinta, a solution has been found that can meet a wide array of renewable energy requirements for our members. 

We are now proud to be able to extend the PPA solution to all our members. 

Location of the Wind Farm

Under the PPA agreements, the Bald Hills Wind Farm in Gippsland, an accredited GreenPower generator, will supply large-scale generation certificates to meet the specific renewable energy requirements of each signatory. 

This PPA also builds on the National GreenPower Accreditation Program, which provides assurance for electricity customers that their voluntary commitments are matched with renewable energy that is added to the grid on their behalf. 

Recognising the pioneers of the PPA at the Bald Hills Wind Farm

On April 20th 2021, Procurement Australia facilitated an event to the Bald Hills Wind Farm to acknowledge all 14 founding organisations on the Power Purchase Energy Agreement. The event was invite only consisting of the founding organisations, Procurement Australia Staff, representatives from SavvyPlus Consulting and Alinta Energy

During the event, attendees witnessed the wind turbines in action and had the opportunity to speak to Lindsay; the owner of the land, Infrastructure representatives and Glenn; the site asset manager. Providing a personal reach to all our participating organisations assists in facilitating a transparent approach where member organisations can see exactly how their energy is being generated and managed.

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Bald Hills Wind Farm in Gippsland:

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How our PPA works

Power purchase agreements (PPAs) are an increasingly popular and effective alternative to short term standard electricity retail contracts. When constructed correctly, they can provide long-term energy price visibility, and transparency reduced energy price volatility risk and allow for alignment with larger renewable energy generating assets.

Under this new 10-year PPA, 13 Victorian councils and 1 State Government Authority now have the means to meet their individual sustainability and renewable energy goals commencing from 1 July 2020.

This PPA allows for Victorian councils and authorities to take advantage of increased certainty in their management of energy use and costs, both immediately and throughout the decade to 2030. Given the regular volatility and unpredictability of the longer-term energy supply around the nation, security and confidence in this agreement is everything. Thanks to the contract between Procurement Australia, its members and Alinta Energy, the PPA allows for these council, authorities and those they serve to feel secure and confident that their individual energy requirements have been heard, and are being met. 

What is the agreement between Procurement Australia and Alinta Energy?

The PPA is a Victorian-based agreement. Procurement Australia members who signed on to this PPA can set their renewable energy targets and energy strategy that works for them and have this delivered by Alinta Energy, at a long-term competitive rate.

The level of voluntary Large Scale Generation Certificates sourced by each member via this PPA is at the discretion of each member to cater for their individual renewable energy requirements which is a major positive and value add provided by both Procurement Australia and Alinta Energy. 

Which councils and authorities have signed on?

These PPA agreements are a historic achievement: We believe it is the largest, cross-council PPA with this many participants. 

What are the benefits?

From the beginning, this PPA wasn’t just focused on delivering surface level ‘green’ solutions. Procurement Australia and Alinta Energy have worked to achieve a PPA that delivers the stated renewable commitments in a way that is clear, consistent and transparent for our members.

Overall, this PPA will deliver: 

PPAs are notoriously difficult to engineer, despite the often overwhelming positive outcomes.

Thanks to the capability of Procurement Australia’s dedicated Strategic Sourcing team and their advisers and Alinta Energy’s commitment to service, this PPA is different. This agreement is representative of the confidence our members have in Procurement Australia to remove unnecessary complexity around a complex product while still maintaining the quality and assurance of the solution.

Our Solution:

*Tick = Public Sector Tendered Solution

JUST THE BEGINNING
The successful brokering of this renewables-focused PPA is just the start.
STRATEGIC SOURCING TEAM
Procurement Australia’s dedicated Strategic Sourcing team is gathering its expertise and capabilities to broker the next iteration of renewable energy PPAs around Australia.
MORE PPA AGREEMENTS COMING
While this significant milestone will support members for an entire decade, there’s still more work to be done. We are now in the process of establishing two more Renewable Energy Power Purchase Agreements.
BE READY FOR NEXT ITERATIONS
Power purchase agreements can help Australia to become a leader in the fight for a renewable energy future. Individual councils, authorities and businesses all have a part to play to reach national targets and secure a greater renewable option.
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Talk to Procurement Australia about anything related to Power Purchase Agreements:

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