Procurement Australia’s expanding Power Purchase Agreement portfolio.

Procurement Australia is committed to securing sustainable energy outcomes for all our members, both now and in the future. As one of the largest aggregators in Australia, we’re proud to be renowned for our ability to find the answers to difficult procurement questions and requirements. 

This dedication and depth of market understanding has been demonstrated in Victoria and New South Wales through our mutually beneficial energy partnerships between Procurement Australia and Alinta Energy (Victoria), and Red Energy (New South Wales). Our 10-year Power Purchase Agreements (PPAs) allow committed members to secure renewable energy to assist them with their sustainability agendas and individual desired outcomes. 

Finding energy solutions that work for everyone can seem an insurmountable task, especially in an increasingly volatile market. With our growing energy supplier partnerships and commitment to service our members' ranging renewable energy needs around Australia, we’re taking a new approach to large-scale, renewable energy supply.

Future PPAs are already in the early planning stages throughout other states. We are proud to be able to extend the Victorian and NSW PPA solution to all our members.

How our two PPAs work

Power purchase agreements (PPAs) are an increasingly popular and effective alternative to short-term standard electricity retail contracts. They are also notoriously difficult to engineer, despite the often overwhelming positive outcomes. 

When constructed correctly, they can provide long-term energy price visibility and transparency-reduced energy price volatility risk and allow for alignment with larger renewable energy generating assets.

Procurement Australia’s successful brokering of two PPAs in separate states with varying energy requirements speaks to the underlying rigour of our process and the comparable strength of the end product in an increasingly complex marketplace. Given the regular volatility and unpredictability of the longer-term energy supply around the nation, security and confidence in these agreements is everything.


What are the benefits of these PPAs?

From the beginning, our focus for both PPAs wasn’t on delivering surface level ‘green’ solutions. We have worked to achieve a reputable and replicable PPA structure that delivers the stated renewable commitments in both states in a way that is clear, consistent, targeted, and transparent for all members.
Overall, the two active PPAs deliver:

solution for members
A path for members
Price certainity
Elimination of power
Generous load roll

Procurement Australia: New South Wales PPA

Procurement Australia’s latest PPA will see seven councils access renewable energy utilising the Metz Solar Farm near Armadale in the New England region of New South Wales. Facilitated by Procurement Australia, the 10-year PPA with Snowy Hydro through Red Energy expands on the already overwhelming success of the Victorian PPA in partnership with Alinta Energy. 


Procurement Australia: Victorian PPA

Under this 10-year PPA, 13 Victorian councils and 1 State Government Authority now have the means to meet their individual sustainability and renewable energy goals commencing from 1 July 2020. This PPA allows Victorian councils and authorities to take advantage of increased certainty in their management of energy use and costs, both immediately and throughout the decade to 2030.


The successful delivery of these two renewables-focused PPAs in Victoria and New South Wales is just the start. Procurement Australia has its sights on securing more PPAs throughout other states and territories around Australia.
Procurement Australia’s dedicated Strategic Sourcing team is gathering its expertise and capabilities to broker the next iteration of renewable energy PPAs around Australia.
While this significant milestone will support members for an entire decade, there’s still more work to be done. Procurement Australia has its sights on securing more PPAs throughout other states and territories around Australia.
Power purchase agreements can help Australia to become a leader in the fight for a renewable energy future. Individual councils, authorities and businesses all have a part to play to reach national targets and secure a greater renewable option.

Talk to Procurement Australia about anything related to Power Purchase Agreements: