2Power Purchase Agreement (VECO)
Progress
- Not started
- Planning
- Implementation
- Continuous
On time
9.5 year contract signed.
OBJECTIVE
IMPACT
HighThis action will reduce around 17,239 tonnes CO2-e between 2022 and 2035.
Description
Council's buildings and facilities have been powered by 100% renewable electricity since the 1st July 2021.
We achieved this by partnering with 50 other LGAs to form the Victorian Electricity Collaboration (VECO), which negotiated a 9.5 year Power Purchase Agreement (PPA) with Red Energy.
The renewable electricity is being generated by two large wind farms in western Victoria - Dundonnell Wind Farm near Mortlake, and Murra Warra II Wind Farm near Horsham. Owned by Snowy Hydro, Red Energy is a 100% Australian-owned and operated energy retailer.
The PPA currently applies to all buildings and facilities for which Council pays the electricity invoices. Leased buildings for which third parties pay the electricity bills are currently not included in the PPA. However, we are currently in the process of encouraging tenants of our buildings to either join our PPA, or alternatively switch to another 100% renewable energy provider (e.g. Indigo Power).
Leased buildings account for an estimated 7% of our total emissions (as Scope 3, downstream).
In 2021/22, Council's first year under the VECO PPA, we reduced our annual emissions to 16 tonnes of CO2-e compared to 737 tonnes in the previous financial year. In 2022/23, emissions from electricity consumption reduced even further to 3 tonnes of CO2-e.
Tasks
What has been done?
- 30/06/2023
Initial term of 2 years
- 30/04/2023
Extension of PPA
Refer to Section 4.2 of the VECO Implementation Deed signed by Council in June 2021.
- 01/07/2021
VECO agreement commenced
Council switched its electricity accounts from fossil fuel to 100% renewable energy, via two wind farms in Western Victoria.
Summary and contacts
Timeline
01/07/2021 → Continuous → 31/12/2030
Target audience
Responsible organisations
- OFFICE OF THE CEOSignatory to Council's Power Purchase Agreement (VECO).
- Environment & SustainabilityMonitors electricity consumption using Council's carbon accounting platform (Trellis).
- FinanceProcesses invoices from Red Energy.
Emissions Scope
Indicative costs
$0.24 per kWh average across all facilities (FY 22/23)
Indicative savings
Reduced costs through energy efficiency projects.
Information updated 12/03/2024
Refer to section 4.1 of Council's VECO Implementation Deed signed by Council in June 2021.