Baker McKenzie has successfully brokered a significant Power Purchase Agreement (PPA) between Iberdrola and 13 regional New South Wales (NSW) councils.
The agreement, set to commence on January 1, 2025, and run through the end of 2030, will supply over 390 GWh of electricity to 163 large council sites and street lighting across the participating council areas.
The PPA, known as ‘The Powering Tomorrow: Regional Councils NSW‘, was coordinated by the Hunter Joint Organisation.
This collaborative approach allowed the councils to leverage their collective buying power, securing a competitive deal while reducing procurement costs through shared resources and fees.
Aylin Cunsolo, lead partner at Baker McKenzie, highlighted the environmental impact of the agreement, stating: “By opting for renewable energy to power large sites and street lighting, the councils will avoid an estimated 185,303 tonnes of carbon dioxide equivalent (t C02-e) emissions over the duration of the agreement, whilst also achieving cost savings and budget certainty.”
The majority of the participating councils have chosen 100 per cent renewable energy under the PPA.
This decision is expected to result in collective savings of approximately $5.28 million through 2030 compared to 2024 electricity costs.
Additionally, the price certainty secured through this PPA will shield the group from energy market volatility.
Cunsolo further explained the economic benefits of the deal: “Renewable energy purchased under this agreement will come from several of Iberdrola Australia’s NSW-based renewable energy projects, including the Capital Wind Farm, the Avonlie Solar Farm, and the Bodangora Wind Farm.
“This supports the economy of regional NSW by creating jobs and fostering the growth of new energy sectors.”
Highlighting the broader implications of such collective PPAs, Cunsolo stated: “This initiative not only benefits the 13 councils and their communities but also serves as a model for other councils seeking similar stability and sustainability.”
This landmark agreement demonstrates the power of collaboration in addressing energy challenges faced by regional councils and sets a precedent for future sustainable energy initiatives in Australia.
