Hunter JO helps councils across regional NSW save on energy costs and move to renewables through
Power Purchase Agreement (PPA)
The Hunter JO is thrilled to announce that it has worked with 13 councils across regional NSW to secure a renewable electricity supply agreement with Iberdrola Australia through to the end of 2030 by facilitating a Power Purchase Agreement (PPA). The PPA buyers group includes four Hunter JO member councils – Maitland, MidCoast, Muswellbrook and Upper Hunter.
The agreement secures the supply of over 390 gigawatt hours of electricity to 163 large council sites and streetlighting across regional NSW, ensuring consistent and reliable energy for essential infrastructure. Amongst the 13 participating councils, an estimated 83% of the electricity supplied under the agreement will come from renewable energy projects based in NSW. Maitland, MidCoast and Muswellbrook have all opted for 100% renewable energy.
In addition, the 13 councils will collectively save an estimated $5.3M through to the end of 2030 compared to 2024 electricity costs, and the price certainty secured through this PPA will protect the group against volatility in energy prices.
The Powering Tomorrow: Regional Councils NSW PPA was coordinated by the Hunter Joint Organisation and Mid North Coast Joint Organisation, along with advisors Sourced Energy, Regional Procurement, Procure Group, and Baker Mackenzie. By collaborating, the participating councils increased their collective buying power to secure a competitive deal and reduced the procurement costs by sharing resources and fees.
By participating in this PPA, the councils will benefit in several ways:
Emissions Reduction: By opting for renewable energy to power large sites and streetlighting, the councils will avoid an estimated 185,000 tonnes of carbon dioxide emissions (t/CO2e). Securing renewable energy though this deal helps the group to decarbonise their operations and aligns the councils with local, state and national net zero targets.
Cost savings and budget certainty: By purchasing as a group of 13 councils across the state, we have been able to lock in renewable electricity at a competitive price through to the end of 2030. The deal also shields councils from volatility in the electricity market that can unexpectedly increase council’s costs, giving us long-term budget certainty.
Supporting regional economies: Renewable energy purchased under this deal will come from several of Iberdrola Australia’s NSW-based renewable energy projects, the Capital Wind Farm, the Avonlie Solar Farm and the Bodangora Wind Farm, supporting the economy of regional NSW by creating jobs and fostering the growth of new energy sectors. This commitment contributes to the development of a sustainable energy future throughout NSW.
The councils who participated in the Powering Tomorrow: Regional Councils NSW PPA are:
- Bellingen Shire
- Berrigan Shire
- Edward River
- Griffith City
- Leeton Shire
- Maitland City
- MidCoast
- Murray River
- Murrumbidgee
- Muswellbrook Shire
- Narrandera Shire
- Port Macquarie – Hastings
- Upper Hunter Shire