One of the largest renewable energy deals for local government has been announced by the Southern Sydney Regional Organisation of Councils (SSROC) after brokering a deal with electricity retailer ZEN Energy.
Worth approximately $180 million, the landmark retail electricity agreement will deliver over 214-gigawatt hours of electricity per year to 25 councils across NSW through three solar farms.
The deal between the two parties involves the supply of electricity to over 300 major council facilities, more than 210,000 streetlights and more than 3000 small sites managed by councils. The agreement will commence in 2022 and will run to 2026 with an option to extend to 2030.
Nineteen of the participating councils of the SSROC, where member councils can interact, exchange ideas and work collaboratively to solve regional issues and contribute to the future sustainability of the region, have opted for 100% renewable energy under the agreement.
Overall, 83% of the councils’ total electricity supply will be covered by renewable energy from the Moree, Hillston and Nevertire Solar Farms, all located within NSW.
Minister for Local Government Wendy Tuckerman said the landmark collaboration between councils brings NSW one step closer to achieving net-zero goals.
“It is fantastic to see SSROC working with one of the nation’s leading renewable energy companies, ZEN Energy,” Minister Tuckerman said.
“Councils working together in this way shows just what all levels of Government can achieve in aiming for net-zero emissions and energy security. This huge investment in NSW will be the foundation of a brighter and cleaner future.”
Meanwhile, Burwood Mayor and SSROC President Cr John Faker stated that the councils were able to get a great renewable energy deal at the same cost or at a lower cost than existing contracts for traditional black power by buying as a group.
“This is a major win for the environment at a time when the world’s focus is on taking solid steps to address climate change,” he said.
“It is a huge demonstration of the commitment of councils to serving their communities, minimising their carbon emissions and growing the economy of NSW.”
As an energy retailer, ZEN Energy supplies renewable energy to the South Australian Government, CSIRO’s sites in New South Wales, Victoria and the Australian Capital Territory along with the SACOME Buying Group and other large electricity users.
“SSROC has been leading the market in advocating for shorter-term, lower risk renewable energy supply agreements for councils that can be negotiated at competitive supply rates. This innovative, lower risk, deal lasts for 4.5 years and can be extended for up to 4 more years by participating councils,” SSROC CEO Helen Sloan said.
“The approach taken proves that councils can secure competitive pricing and meet their renewable energy targets without having to enter into a long-term agreement.”
ZEN Energy’s CEO Anthony Garnaut thanked the SSROC for granting them the chance to supply renewable electricity to the councils.
“We look forward to working with all participating councils and their constituents to build the zero-carbon future,” he said.
Throughout the agreement, SSROC was advised by Sourced Energy, Next Energy, Allens and Procure Group.