Procurement Australia Energy update – November 2020
November was a hot one!
Renewable Power Purchase Agreement (PPA)
Fixed Price – Fixed Term
Progressive Procurement
Roof-top Solar with/without Storage
Procurement Australia Service Dashboard Reports
AGL Customer Service
Renewable Power Purchase Agreement (PPA)
This product provides both power and mandatory and voluntary environmental certificate requirements
- Can point to the actual generating asset
- Avoids any derivative instrument
- Provides business as usual invoicing
Key Benefits of PPA
- PPA is a grid-connected, large scale, renewable generation source project accommodating all large market and public lighting electricity
- Draws renewable energy only, not fossil fuel burning
- Is generally a long term arrangement (8-14 years)
- Is usually a solar farm, a wind farm or a hybrid solar/wind farm solution
Find out about Procurement Australia’s current PPA contract.
Procurement Australia was heavily involved in the Melbourne Renewable Energy Project (MREP):
- PPA for City of Melbourne and it’s public and private sector consortia partners
- Chaired the Tender Evaluation Committee
- Coordinated the tender build-up and tender mechanics
SavvyPlus Consulting is our Procurement Australia Energy Consulting team and;
- Supports and assist in our current PPA project
- Advised Commonwealth Bank on the PPA announced late 2018 and now Stage 2 of the renewable strategy (Aust wide)
- Advising a large commercial operation on Vic and NSW PPAs
- Advised a large Vic industrial which led to a PPA
- Advised a large NSW industrial in NSW which did not lead to a PPA due to an indifferent value proposition
- Run many PPA Workshops
- Has undertaken many renewable project valuations (wind, solar, battery)
Fixed Price – Fixed Term
- The traditional procurement methodology for energy contracts
- Offers price certainty across a defined time duration – usually years
- Is the largest used energy product offered by PA
- PA competitively tenders for this requirement free of charge every two years
- Green Power is available for those who wish to pursue this option
- Dedicated call centre and account management infrastructure in place to service member requirements
Progressive Procurement
The Progressive Procurement product allows a flexible approach to electricity procurement
- Prices not fixed for longer-term
- Allows for prevailing market conditions to apply
Progressive Procurement works on a forward price hedging strategy procuring load lots per quarter of the year at prevailing wholesale prices. Hedging purchases are averaged per quarter then converted into peak & off-peak tariffs for that quarter
5 Key Reasons to be on a Progressive Procurement Energy Contract
- Viewed as better practice generally – a lower risk with better Governance
- Variable energy & environmental certificate price linked to the market, not to one point in time
- Allows for sound, science-based purchasing decision making
- Ensures continual focus on energy within your business
- PA does the heavy lifting – Members can be active or passive in the program apply
Procurement Australia’s Experience in Progressive Methodology
- Established the product in the Local Government sector
- 3 portfolios tendered in November 2017 and March 2018
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- Firm committed volume only
- Large Market meters only
- Tenders contest retailer’s experience, capability, portfolio transaction management and load shape premium(s)
The members that use this contact
- Councils
- Water Authorities
- Private sector entities
- Not for profits
Roof-top Solar with/without Storage
Roof-top-Solar is standing specialist panel contract structure consistent of reputable companies engaged via a public sector tender process
Solutions available for:
- Feasibility Study, Design & Associated Consulting Services
- Provision of hardware – Solar panel solutions, Power Factor Systems, batteries and Inverters
- Installation, Commissioning, Maintenance & Associated Services
- Energy Efficiency Consulting, Engineering & Associated Services
- Flexibility in approach – member-specific requirements addressed via each request for proposal to the panel suppliers
Roof Top Case Study
By managing a rigorous tender process for Wodonga TAFE, Procurement Australia has enabled the planned installation of 600kw of rooftop solar PV panels on three of the TAFE’s campuses in Victoria
The project involved installing 1,584 solar panels on 11 campus buildings. This will supply up to 30% of the campus’ electricity demand.
Procurement Australia Service Dashboard Reports
AGL Customer Service
AGL’s commitment to you goes far beyond just supplying energy. Your dedicated Service Team is your direct point of contact for all matters and questions relating to your energy needs.
Based locally in Melbourne and Adelaide are 4 service teams, comprising over 60 Business Service Specialists who are committed to ensuring you enjoy the best of value, services and energy advice at all times. It’s all about smart solutions that make your life easier.
Looking for office space?
Space station offers private offices, meeting rooms and co-working spaces at reasonable prices and flexible lease terms
Want to learn more about procurement?
Attend our events and briefing sessions and put yourself at the forefront of this ever-changing industry.
An event not to be missed
Attend our conference this year and put yourself at the forefront of this ever-changing industry
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