Renewable power purchase agreements (PPAs) that reduce cost, improve cost certainty, engage staff, help reduce carbon emissions, and support the growing financial viability of renewable energy projects, are increasingly taking off in Australia.
Companies are entering long term contracts – or PPAs - to purchase electricity directly from energy generators/suppliers, which locks in agreed pricing over many years and provides financial certainty to all involved.
PPA growth in Australia has tended to come from the not-for-profit sector – cultural institutions, local government, universities – and the mainstream corporate sector – banking, telecommunications, brewing, and grocery retailing, until recently.
Four years ago, renewable PPAs entered Australia’s electricity market, and with that, a change in the type of industry seeking energy certainty.
This note reviews the growth of renewable PPAs in Australia, including the first renewable PPA to be negotiated with the iconic Sydney Opera House.
Press release: IEEFA Australia: Corporates can save money while supporting growth of renewable energy
Please view full report PDF for references and sources.