About this guide
Companies and institutions are recognising the value of renewable energy purchasing through large-scale, long-term contracts. They have been adopted by many major international brands over the last decade. A number of recent announcements in Australia – including from Telstra, Sunshine Coast Regional Council, and Sun Metals – suggest that we will be seeing more of them here.
Through their purchasing decisions, large organisations such as councils, universities, corporations and infrastructure authorities have the power to drive investment in new renewable energy projects such as wind farms and solar parks.
These models have the potential to drive new investment in renewable energy and accelerate Australia's transition to a cleaner energy supply. They also deliver a host of benefits to the purchasers, including stable electricity prices and lower costs, as well as a reputation for leadership and innovation and investment in community programs.
This guide is all about how to procure electricity this way. It will help you:
- understand the opportunities
- understand what you need to know and how to get started
- make the business case
- plan the procurement process.
It doesn't deal with other ways to purchase renewable energy, such as installing small-scale rooftop solar, or entering into short-term electricity contracts. The guide is written from the perspective of Australia's east coast 'National Electricity Market'. Electricity markets operate different in various parts of the world. Many of the observations and lessons may be applicable in other markets, but some of the specifics may differ. If you are located outside Australia, you may need to undertake your own local research.
Throughout the document, you'll find case studies and tips drawn from our experience establishing the Melbourne Renewable Energy Project, and from other similar projects.
Acknowledgements
The City of Melbourne would like to acknowledge the assistance and advice provided by the following parties in the production of this guide:
- Energetics Pty Ltd.
- Dr Emily Mitchell and Graeme Mills, University of New South Wales
- Cooperative Research Centre for Low Carbon Living
- Jonathan Prendergast, Prendergast Projects
- Sunshine Coast Regional Council
The production of this guide has been made possible through funding provided by the Carbon Neutral Cities AllianceOpens in new tab.
Further reading
Renewable Energy for Business
Business Renewables Centre Australia.
MREP tender documents
Tender documents for Melbourne Renewable Energy Project (PDF 1.1 MB).
The Rise of Corporate PPAs
A new driver for renewables.
Eastern Alliance for Greenhouse Action Report
Electricity Procurement in the Local Government Sector.
Australian Renewable Energy Agency Report: The Business of Renewables
A report into renewable energy take-up by large corporates in Australia.
NSW Guide to Corporate Power Purchase Agreements
Helping energy buyers to make the most of the growing NSW renewable energy opportunity.
