AGL Energy has entered a long-term Power Purchase Agreement (PPA) with Tilt Renewables to secure a significant portion of electricity generation from the upcoming Palmer Wind Farm in South Australia, further diversifying its renewable energy portfolio.
Under the 15-year agreement, AGL will offtake 45 per cent of the project’s expected generation, equivalent to approximately 123 megawatts (MW) from the wind farm’s total nameplate capacity of up to 288 MW.
The deal underscores AGL’s ongoing strategy to expand its renewable energy supply as part of its transition toward net zero emissions.
AGL Chief Commercial Officer, David Moretto, said renewable energy PPAs strengthen AGL’s ability to meet customer needs while contributing to national decarbonisation objectives.
“AGL operates a diverse portfolio of assets to help meet the needs of our customers,” said Moretto.
“This renewable energy PPA will add important diversification within AGL’s energy portfolio, support the decarbonisation of the company’s electricity supply, and can help AGL support its customers to decarbonise by increasing the renewable energy linked supply within our portfolio,” he said.
Located about 70 kilometres east of Adelaide, the Palmer Wind Farm will be developed and operated by Tilt Renewables, a major player in Australia’s renewable sector.
The project is targeting first commercial operations in December 2028, after which AGL’s offtake arrangement will commence and run through to 2043.
The agreement forms part of AGL’s broader renewable procurement program, which focuses on entering PPAs with independent project developers across Australia.
These agreements allow AGL to purchase both electricity and Large-scale Generation Certificates (LGCs) at a fixed price, providing revenue certainty for generators while enabling AGL to offer cleaner energy options to its customers.
Power Purchase Agreements are considered fundamental to accelerating Australia’s renewable energy transition as they help to underwrite the financing and development of large-scale renewable projects.
By securing long-term offtake commitments, companies like AGL provide financial stability that allows developers to bring new capacity online more efficiently.
The Palmer project represents one of several significant wind developments in South Australia’s energy pipeline.
Once operational, it is expected to generate enough clean energy to power tens of thousands of homes annually, contributing to the state’s already high penetration of renewable electricity.
For AGL, the agreement aligns with its target of achieving net zero emissions from its operations and electricity supply by 2050 and its efforts to progressively retire or repurpose its thermal generation fleet.
With construction expected to commence in the coming years, the Palmer Wind Farm will not only add substantial renewable generation capacity to South Australia’s grid but also reinforce AGL’s commitment to delivering affordable, reliable, and sustainable energy for its customers nationwide.