Category Archives: 2018

Nine ways to maximise the financial benefit from your surplus solar energy

9 ways to maximise the financial benefit from your excess solar
9 ways to maximise the financial benefit from your excess solar

Our recent blog posts related to the treatment of surplus solar energy. We considered the carbon accounting treatment of your exported solar, explained peer-to-peer energy trading and its applicability to solar exports. In this blog post, we are investigating nine ways how you can maximise the financial benefit from your excess solar.

Nine ways to maximise the financial benefit from your surplus solar

1 Negotiate a good Feed-in-Tariff (FiT)

Your exported solar electricity has a value, which is equal or close to the wholesale electricity market price. Many retailers will offer feed-in rates with most drawing on annual guidance by IPART on appropriate FiT rates or ranges. Some retailers will offer a fixed rate, while others will offer a credit at the same Time-of-Use (ToU) retail rate that applies when the electricity is exported.

You should review your current agreements for treatment of excess solar energy generation, and look to agree on a fair rate or specify this requirement in your next retail energy negotiation.

2 Find a retailer who is willing to net off your supply and demand

If no FiT can be negotiated, then crediting export to another site could see savings at the receiving building’s full retail electricity rate. Although we are not aware of such an arrangement at a small scale, you may be able to negotiate this with your retailer.

It is possible to assign generation from one site to another, but to do this, the following needs to be in place:

  • You need to find a willing retailer
  • The retailer needs to have a billing system that allows for the assignment of generation on a time of use basis – a tricky issue for tier-1 retailers with legacy billing systems.

There is an example for this scenario with a Power Purchase Agreement undertaken by the University of Technology Sydney (UTS). UTS and its electricity retailer have agreed to ’pass through’ generation from a 200 kW Singleton solar PV farm to UTS’ Broadway campus. However, the electricity from the Singleton solar farm only makes up 2% of UTS’ total load.

3 Ask your network provider for local network sharing tariffs

Historically, network pricing has not considered the proximity of a consumer to a prosumer. However, this needs to change to reflect that the grid is changing to two-way energy flows. If more and more customers ask for this, change can happen.

There are trials underway where network providers have agreed to a new local sharing network tariff. The town of Newstead in Victoria, for instance, has been able to develop a local sharing tariff (for a 2-year trial) with Powercor.

Thus far there are no similar arrangements in place in NSW, though discussions are ongoing. Enova Energy and Essential Energy, for instance, are trying to develop a local generation tariff in the Byron Bay Arts and Industrial Estate.

4 Consider an embedded network

An embedded network is a private network, in which only one parent meter is connected to the grid. Behind that parent meter, several customers are being supplied with electricity, with the Embedded Network Operator controlling how the private network operates.

The operator buys the electricity for the embedded network from a retailer and onsells the energy, usually at a discount to market. In order to set up an embedded network, you need to get a retailer exemption from the Australian Energy Regulator (AER).

Embedded networks are common in caravan parks, business parks, shopping centres, apartment blocks, office buildings, airports and university campuses. They are relatively easy to set up from scratch but expensive to retrofit.

An embedded network may work for you if you are looking to share your excess solar electricity with tenants in the same building that your organisation owns.

5 Use battery storage to increase self-consumption from solar

Instead of sending the excess solar electricity into the grid, you could send it to an onsite energy battery storage system. You can then use this stored energy to supply you with power during times when the sun doesn’t shine, or to help you reduce your peak demand.

Unfortunately, at this stage, the costs of battery storage are still high. This is particularly the case where you export most of your energy during weekends. You would need a large battery to deliver cost savings during working weekdays.

If used primarily to trim peak demand further then the business case will be a little better as a smaller-size battery will be required.

6 Solar with battery storage in a virtual power plant (VPP)

The NSW Government recently announced plans to develop a 200 MW Virtual Power Plant (VPP) that will harness the capacity and stored energy in household and business batteries to provide dispatchable energy during peak network demand periods, typically hot days in summer. This is being developed under the Smart Energy for Homes and Businesses program which is expected to launch early in 2019.

Stored energy can also have value by being capable of being aggregated with other batteries to bid into the wholesale market. This is a key part of some pre-existing VPPs such as Powershop-Reposit’s Grid Impact product, and similar VPPs in other jurisdictions such as the ACT, with a large-scale VPP in development in South Australia.

7 Consider a microgrid

If you are also interested in sharing energy for the purpose of increasing your resilience in the event of a grid failure you can consider a microgrid. Customer-level microgrids and embedded networks are similar, where you are looking to share energy in a private distribution network. The main difference is, however, that the microgrid can disconnect from the main grid.

A microgrid works best in conjunction with battery storage large enough to still supply you with power, even during a blackout.

8 Peer-to-peer solutions like PowerLedger or Greensync

At this time a number of trials of P2P have been progressing, with most commercial projects occurring in strata or similar precincts where energy can be shared behind the main meter. This is because, currently, P2P solutions are easiest to set up in embedded networks.

If the P2P solution is outside an embedded network, where energy is shared between sites via the grid, you need the cooperation of a retailer offering a product that stacks up with credits from the distribution network provider.

For more information on P2P energy trading trials, you can read our blog post on peer-to-peer energy trading.

9 Consider a portfolio approach

Last, but not least, you should always consider a portfolio approach when maximising your financial benefits of solar. Every time you go to market for a new retail contract, you need to evaluate options that give you the bests financial return overall for your portfolio of assets. In addition to evaluating solar export, you may also want to pair this with demand flexibility mechanisms.

 

100% Renewables can help with evaluating these options for you. Please contact Barbara or Patrick for further information.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

The current reality of peer-to-peer energy trading for sharing surplus solar energy

With falling prices for solar panels and with experience gained on previous solar PV projects, many of our clients are thinking about increasing the size of their current solar installation where space allows.

By increasing the size of their system, many clients would be exporting some of their solar electricity, especially on weekends. Naturally, the question arises how to maximise the financial benefits from that surplus electricity.

It is not uncommon for the value of exported solar energy generation to be forgone, whether through lack of management or an unwillingness by a retailer to offer or negotiate a feed-in rate. In this scenario, you would lose any financial opportunity from exported solar.

This is when many of our clients ask about the status of peer to peer trading and local energy sharing.

What people tend to think happens in a P2P energy trading transaction

It seems such a straightforward concept. You have excess electricity from your solar installation on Building A, you assign this to Building B across the road, which can’t have solar (e.g. is overshadowed). Building A benefits by increasing the size of its solar PV array leading to higher bill savings, and being able to assign or sell the exported electricity to Building B. Building B would benefit by potentially having a lower electricity bill, and a renewable energy supply.

100% RE - Expectations for P2P energy trading
100% RE – Expectations for P2P energy trading for exported solar electricity

The reality of current P2P energy sharing for your surplus solar

Unfortunately, the reality is different. When you produce electricity from solar panels that isn’t used on site, you usually export it to the grid. You can’t get the electricity from Building A to Building B without using the network.

And here is the problem: while your buildings might be close to one another, you will incur the full network charges (which for some organisations can be up to 50% of their overall bill). Network charges are made up of transmission and distribution charges. When you share energy locally, theoretically you shouldn’t have to pay the transmission charges, but in reality, you do.

In 2016, the City of Sydney, the Total Environment Centre and the Property Council Australia argued for the introduction of Local Generation Network Credits (LGNCs) with the Australian Energy Market Commission (AEMC). Unfortunately, the AEMC did not go ahead with this proposed rule change.

This means that currently, there is reduced incentive to oversize your PV system and export solar electricity, unless you have a great feed-in-tariff, or have an agreement with your retailer to net off the electricity consumption of your buildings with the surplus energy generation from another building (more on this in the next blog post).

Current reality of P2P energy trading for surplus solar electricity
Current reality of P2P energy trading for exported solar electricity

Recommended approach

At this time the recommended approach is to seek a feed-in rate for surplus solar energy generation with your electricity retailer – either immediately or included in your next contract negotiation. You may also be able to negotiate for the excess solar energy to be credited against the demand of your other building. If you are running an embedded network and you don’t own all the buildings in the embedded network, you can trial blockchain solutions like Power Ledger. We will have more information on these options in the next blog post.

In any case, you should evaluate the tariffs and prices against the portfolio of all your assets and evaluate demand flexibility options to achieve the overall best outcome. And as always, it is important to keep a watching brief on any new developments, as this space is evolving rapidly.

In the next blog post, we will expand on how you can maximise the financial benefit from your surplus solar by looking at nine different options. These include peer to peer trading, installing battery storage and participating in Virtual Power Plants, so stay tuned.

Meanwhile, if you need help with your journey to a clean energy future, please contact Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Peer-to-peer energy trading explained

Australia has more than 2 million solar PV installations, making us number one in the world in terms of the highest proportion of prosumers. While previously, the grid was designed to be one way only, it is now changing to two-way energy flows; facilitating exports of electricity as much as imports. One option to enable a two-way energy flow is local energy sharing or peer-to-peer trading.

What is energy sharing, or peer-to-peer energy trading?

Simply put, energy sharing is where one party produces excess electricity and then shares this with another party. Energy sharing is also known as Virtual Net Metering (VNM) or peer-to-peer energy trading.

Peer-to-peer (P2P) energy trading can be compared to file sharing programs on the Internet, like BitTorrent; to eBay in terms of shopping and to Airbnb in terms of accommodation. Fully enabled P2P trading would cut out the ‘middleman’ and allow transparent dealings between equals, as opposed to being treated as a ‘consumer’ by a corporation.

Peer-to-peer energy trading explained
Peer-to-peer energy trading explained

The party that sells electricity is called ‘prosumer’ because they not only consume energy, they also produce it.

Energy sharing could happen between tenants in a multi-rise, between adjacent buildings, or between anyone on the same network.

For example, if my solar panels at home produce excess electricity while I am at work, I could sell the surplus energy to my neighbour who can’t have solar panels. Similarly, your organisation could have multiple assets and wish to sell electricity to yourself or to donate electricity to neighbouring households or businesses as part of your social commitment.

Advantages of peer-to-peer-trading

The biggest advantages of local energy sharing are that:

  • Energy does not have to be transported from centrally located power plants, reducing electricity transportation costs
  • Energy generation can be based on renewables
  • Energy can be bought from a known source (which allows you to claim energy from a specific project)
  • Energy costs can be lower for the buyer
  • The financial benefit for the generator can be better than a feed-in rate
  • There is choice and transparency in dealing with other consumers

Barriers to peer-to-peer trading

Several barriers exist to P2P trading at present, and it is not known at what time these will be overcome so that consumers can begin to participate and benefit from renewable energy. Some of the main barriers include:

  • Not yet commercialised
  • Immature market for solutions
  • Multiple stakeholders that need to be convinced of the business case (e.g. retailers)
  • Regulatory barriers

Supporting technology – Blockchain

P2P energy trading involves a large number of transactions between prosumers and consumers and needs technology that allows for low-cost authentication, validation and settlement while protecting privacy. One of the most promising technologies to enable this is ‘blockchain’, a distributed ledger technology. Blockchain is mostly known as the technology supporting distributed trading, such as Bitcoin.

With blockchain, transactions are stored in virtual blocks, which are connected together in a chain. A complete history of all transactions that have ever occurred within a particular network is retained. Blockchain technology can offer a cryptographically secure, distributed ledger that can track where electricity was generated, where it can travel to and who used it.

There is no question about where a kWh came from and how it was produced. The technology is transparent and secure and does not require a central entity to store and manage shared data and business process. It will also make it easier for new and smaller players to be involved, right down to the individual solar household.

Current status of P2P energy trading

Progress with peer-to-peer trading is slow. A couple of trials in the residential market have been unsuccessful, partially because there was no funding, but mostly due to the current market situation.

On the one hand, regulated network tariffs mean there are little benefits to local energy trading. On the other hand, there are low levels of installed controllable distributed energy resources, which makes it hard for solution providers to provide value to their customers.

There are a number of trials using blockchain technology that have been or are currently being conducted, examples of which you can see below.

Most other forms of energy trading are heading down the Virtual Power Plant (VPP) pathway like AGL’s VPP in South Australia or Origin’s VPP in Victoria. However, like the blockchain trials, these solutions are not widespread and involve mostly the residential sector.

Blockchain-based peer-to-peer trials

AGL Solar Exchange trial in Victoria

AGL previously used blockchain technology in a desktop/virtual trial using solar panels, batteries and smart air conditioning in Melbourne homes. The aim was to understand the value in P2P energy markets.

Now AGL has launched Solar Exchange, which is an online marketplace enabling solar households to trade their excess solar power in the form of solar tokens. These tokens can be sold to other AGL customers residing in Victoria.

Under the right conditions, a buyer could buy tokens at a lower price than buying energy from the grid, while a household with solar could sell excess solar tokens at a higher price than the solar feed-in tariff. A successful trade of Solar Tokens can only be made if the buyer and seller have chosen compatible trade settings and have compatible solar export and grid usage profiles for the same trading interval.

The Solar Exchange is the largest consumer energy trading trial in Australia, with more than 250 Victorian customers participating since the pilot launched in August 2018.

Power Ledger trials in Western Australia

The Power Ledger Platform enables interoperability between diverse market management/pricing mechanisms and units of electricity (kWh) by way of pre-purchased tokens, called ‘Sparkz’, which are backed by blockchain bond called ‘Power Tokens’.

Sparkz are settlement tokens that are pegged to the local fiat currency (e.g. AUD in Australia, USD in the USA). Sparkz can be traded on the Power Ledger platform within defined trading groups through a suite of APIs that interface with smart meters.

The Power Ledger system tracks the generation and consumption of all trading participants and settles energy trades on pre-determined terms and conditions in near real time.

One promising use case for platforms such as Power Ledger’s is an embedded network, such as apartment blocks or housing developments, where residents can trade their solar energy with one another in a semi-regulated environment.

Power Ledger have implemented several successful trials of their technology under this embedded network scenario in Busselton and Fremantle. In the case of fully regulated markets, where a retail license is required to buy and sell energy on the national grid (such is the case in most of Australia), the ability for blockchain to facilitate true peer-to-peer energy trading on a wider scale than just embedded networks is somewhat constrained.

LO3/TransActive Grid in South Australia

LO3 is a US-based firm known for setting up a microgrid in Brooklyn and Germany, and for the fact that their solution is built on blockchain technology.

The company is focused on the physical transaction of energy, not the financial transactions. They see their strength in the need for fast-acting load responses, storage, controllable generation and reaction time. Their first rollout in Australia is the New TransActive Grid in South Australia.

Up to 6MW of distributed solar generation will be made available on a local energy marketplace, using LO3’s peer-to-peer trading platform. The microgrid will begin with a ‘discrete’ market using Yates Electrical Services’ Small Generation Aggregators License and their associated commercial or industrial customers, who will bid on solar electricity supplied by the firm.

A meter will be added onto a household or business which manages all energy inputs and outputs, giving participants access to cheaper electricity generated by local solar farms. The solar power will come from six locally built PV plants ranging from 200 kW to 1 MW in size (two have already been constructed) that are being sited on ‘redundant’ farmland in South Australia’s Riverland region.

deX

In December 2017, Greensync launched the ‘Decentralised Energy Exchange’ (deX). Normally, behind-the-meter generation capacity is invisible to the energy market operator. However, deX is a digital technology platform that allows utilities to see exactly what distributed energy resources are available at any time on customers’ premises and how they are performing.

deX can remotely control those resources, with the customers’ consent, at times of high demand or volatility to avoid shortages. The platform lists buyers and sellers, records agreements between them, manages event handling and verifies both parties met their obligations.

The deX program started with commercial and industrial system-owners and will expand to include about 1,200 battery-owning households, which will make up about 5MW of a total 11MW of network support. deX partners include retailers Powershop and Mojo, storage and power engineering firms Siemens, Tesla and ABB, and consumer technology suppliers like Geli, Jetcharge, Wattwatchers and Power Ledger. AEMO, ARENA, Energy Networks Australia and the Clean Energy Council are also partners.

Next blog post

In the next blog post, we will delve into greater detail whether peer-to-peer technology is suitable for exporting electricity from your solar PV installation.

Meanwhile, if you need help with your journey to a clean energy future, please contact Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

How to account for exported solar electricity [new approach by NCOS]

The treatment of energy generated from solar PV systems is an important consideration for organisations who have carbon reduction or renewable energy targets. Most people know that electricity generated from solar reduces their grid electricity purchases and thus their carbon emissions. However, what causes much confusion is how to correctly account for renewable electricity that your organisation has exported to the grid.

How to account for exported solar electricity
How to account for exported solar electricity

Why do solar PV systems send electricity to the grid?

Your onsite solar PV system can export to the grid when there is not enough energy demand at your building – for instance, on the weekend. It may also send solar power to the grid where you have oversized your PV system.

The old way of carbon accounting for exported solar electricity

It used to be that any excess electricity your solar PV systems produced was a carbon reduction ‘gift’ to the grid. You would have calculated your greenhouse gas emissions from electricity based on your grid electricity consumption at the applicable emissions factor, less GreenPower® or LGC purchases. Emissions from your organisation’s self-consumption of solar generation were zero, and solar energy exported to the grid was not accounted for.

Why this approach was problematic for some organisations

One of our clients with multiple sites receives a credit for exported solar energy under its retail agreement. From a billing perspective, the retailer nets off the exported energy against grid-supplied power. Effectively, our client receives a feed-in-tariff equal to retail energy rates at the applicable time-of-use period.

When presented on a bill our client sees a ‘net consumption’ figure on the retail energy section. This figure is captured by their carbon emissions software and emissions are calculated from this net figure. This led to our client claiming the abatement associated with the exported solar energy.

To accurately account for carbon, our client had to query their inverters and had to work with their carbon emissions software provider and their retailer to ensure that correct data was available – in other words, a lot of effort for a small benefit.

Luckily, in October 2018, the Department of Environment and Energy decided to trial a new carbon accounting approach.

The new way of carbon accounting for exported solar electricity

With a recent decision by the Department of Environment and Energy who administer the National Carbon Offset Scheme (NCOS) to trial a new approach, you can now claim the carbon reduction from solar exports.

You are allowed to count electricity generated from renewable energy sources and exported into the electricity grid as a credit (or reduction) in your carbon account. The decision was made because exported energy is considered zero emissions and displaces the need for the generation of emissions-intensive energy elsewhere.

Eligibility criteria

To claim exported renewable electricity as a reduction in your carbon account, the exported electricity must:

  • be measurable and auditable, g. via electricity bills that show the amount of exported electricity; and
  • be generated by a renewable energy system under the operational control of the claiming entity; and
  • be generated from a small-scale renewable energy system (below 100 kW). It does not matter if small technology certificates have been received or sold for that generation; or
  • be generated from a large-scale renewable energy system (100 kW and above) that has not created any large generation certificates (LGCs) for the exported electricity; or
  • be generated from a large-scale system that has created LGCs for the exported electricity but have been voluntarily retired.

How to calculate the carbon emissions reduction for exported solar energy

You can calculate the value of the exported electricity by converting the amount of exported electricity into its carbon emissions equivalent. You need to multiply the amount of exported electricity by the scope 2 emissions factor for the state in which the electricity was generated. The scope 2 factor is used as it represents electricity generation as opposed to transmission and distribution.

The emissions value of exported electricity must be calculated using National Greenhouse Accounts (NGA) factors produced by the Department of Environment and Energy. At this stage, you cannot claim indirect electricity consumption calculated using alternative factors (non-NGA).

You can download the 2018 scope 2 NGA emissions factors here: http://www.environment.gov.au/climate-change/climate-science-data/greenhouse-gas-measurement/publications/national-greenhouse-accounts-factors-july-2018

For example, 10,000 kWh of exported electricity generated in NSW and the ACT is worth 8.2 tonnes of carbon dioxide equivalent (CO2-e). The following formulas show you how to calculate this:

10,000 kWh * 0.82 kg CO2-e/kWh = 8,200 kg CO2-e

8,200 kg CO2-e/1,000 = 8.2 kg CO2-e

How to report the carbon reduction

You can report the exported electricity in your NCOS documentation by summing all total emission sources and then subtracting the emissions value of the exported electricity to give total net emissions.

You can use exported electricity (or Greenpower®/LGCs) to reduce all direct and indirect electricity emission sources, e.g. imported electricity, base building electricity, electricity consumed from street lights or a data centre. For more information on the treatment of LGCs you may also refer to two of our previous blog posts:

Example of a carbon reduction calculation

The following table shows an example of how you would account for your exported solar electricity.

Example carbon account for exported solar electricity

SourceActivity dataScopeEmissions (t CO2-e)
Total net emissions1,495
Electricity1,000 MWh2820
T&D losses electricity1,000 MWh3100
Base-building electricity54 MWh350
Data centre electricity consumption326 MWh3300
Waste21 t325
Water use13 kL33
Paper use9 t310
Business travel – flights574,036 km3190
Food and catering$23,490335
Total gross emissions1,533
Emissions reduced through GreenPower/ voluntarily retired LGCs30
Emissions reduced through exported/ surplus renewable energy8

Conclusion

No matter whether your system is small-scale (under 100 kW) or large-scale (over 100 kW), you can claim the carbon reduction for your onsite as well as your export portion. Bear in mind that if your system is greater than 100 kW, you need to retire your LGCs to claim the carbon reduction benefit.

Carbon accounting can be difficult. If you need help with accounting correctly for your greenhouse gas emissions, or if you want to go carbon neutral, please contact Barbara.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Buying renewable energy via a Power Purchase Agreement, Part 2, PPA options [includes infographics]

In part one of this series, we introduced buying renewable energy via a Power Purchase Agreement (PPA). In this article – part two, we are looking at the main PPA options.

PPA contract models

A number of PPA models have been developed to enable the purchase of renewables in recent years, including sleeved PPAs, direct or sell-side PPA, and virtual or finance PPAs. Sleeved and direct PPA involve the physical delivery of power, whereas a virtual PPA is just a financial contract.

Sleeved PPA

A sleeved PPA is similar to a regular grid power agreement, except that a portion of the underlying electricity generation is from a specific renewable energy project.

Under this model, you will not have a direct agreement with a renewable energy project developer. Instead, your retailer has a direct agreement with a specific renewable energy project and will sleeve the PPA through your electricity retail agreement.

You will either pay a rate for all power purchased or separate rates for renewably generated electricity and regular grid power.

Your retailer will manage the risk in price fluctuation by obtaining the electricity at a fixed rate from the renewable energy project, or by using a contract for difference.

Sleeved PPA Option, Infographic
Figure 1: Sleeved PPA option, infographic

The duration for the renewable component of the sleeved PPA usually is between ten and 15 years, whereas the duration of the retail agreement (where this is separate) will usually be shorter. The retail agreement is subject to wholesale market pricing, whereas the pricing for the renewable component will reflect the developer’s costs and may be fixed or variable over the term of the PPA.

An example of a sleeved PPAs is the Melbourne Renewable Energy Project.

Direct (sell-side) PPA

A direct PPA involves an agreement between your organisation and a renewable energy project developer. The final price of the delivered energy is a combination of the offtake price of the renewables project plus transmission and distribution costs, as well as billing, reconciliation and risk management costs from your retailer.

Typically, your organisation will buy the renewable electricity at a fixed price over a term of 7, 10 or 15 years. Even though you have a direct agreement with a renewable energy project, you still require a retailer to pass through the terms of the agreement.

Your retail electricity agreement will incorporate the PPA price and most likely include a ‘firming’ clause (performance guarantee) that reduces overall risk for the retailer. The retailer needs to risk-manage any fluctuations in generation against your required amount of electricity.

Direct PPA Option, Infographic
Figure 2: Direct PPA option, infographic

In the past, retailers have agreed to this type of PPA where the volume of renewable energy is only a small portion of your overall electricity load. This is because the retailer is receiving no margin on the small amount of renewable energy but is still making a margin on most of the overall load supplied by regular grid power.

To mitigate against the risk of not finding a willing retailer, one of the PPA project requirements could be to incorporate a retailer offer.

Examples for direct PPAs are Sun Metals, Nectar Farms and Westpork.

LGC-only PPA

An LGC-only PPA is the simplest form of renewables procurement other than purchasing GreenPower®. In an LGC-only PPA, you would only purchase the LGCs and not the electricity from a renewable energy plant. Purchasing LGCS only can be compared to purchasing carbon offsets, except that LGCs are currently more expensive than carbon offsets, and they enable you to claim 100% renewable energy.

With an LGC-only PPA, you are only purchasing the green attributes of renewable energy generation, and you are not concerned with balancing energy demand with the output from a renewable energy generator. There is little risk in matching the number of LGCs purchased to the electricity consumed in any given year.

LGC-only PPA Option, Infographic
Figure 3: LGC-only PPA option, infographic

It also means that there will be little or no change to your retail electricity agreement. However, you may be able to achieve a better price through a bundled PPA and striking a deal with a renewable energy generator for LGCs-only may not be sufficient for a new renewable energy project to get off the ground.

Virtual/finance/synthetic PPA (CFD model)

Virtual PPAs are an effective hedge against rising electricity prices. Like with the Direct PPA, your organisation will have an agreement with a renewable energy project developer. However, the important difference is that no physical electricity is being delivered. A virtual PPA is a financial contract and not a contract for power.

You also you don’t need a retailer for a virtual PPA. Instead, you will enter into a contract for difference (CFD) with the renewable energy developer.

Under the CFD model, you and the developer agree on a strike price, which guarantees a fixed price return for the developer. Contracts for difference were adopted by the Australian Capital Territory and Victorian Governments in their recent renewable energy reverse auctions.

A virtual PPA is a stand-alone financial derivative agreement, which not all organisations can enter into. For instance, due to a Ministerial Order, local governments in NSW cannot directly invest in financial derivatives.

Virtual PPA Option Infographic
Figure 4: Virtual PPA option, infographic

The costs for a virtual PPA are the difference between the strike price and market price (when the strike price is above market price) multiplied by the consumption. This means that if the spot market price is low, you will lose money. On the flip slide, you will benefit financially where the strike price is below market price. In the best case, you have an income opportunity of up to the market cap of $14,200 per megawatt hour, less the strike price value.

The contract for difference approach may suit customers with large energy portfolios and sophisticated energy management teams, or who already have hedging arrangements in place (such as for vehicle fuel) or other forms of derivative contracts.

Organisations that have entered this type of contract are UNSW and UTS.

If you intend on using a virtual PPA to meet a 100% renewable energy target, you will need to undertake an additional PPA for LGCs, which is a separate agreement that could be bundled into the virtual PPA agreement.

Conclusion

There are many different ways to enter into a PPA. If you need help with navigating these different options, please contact Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Buying renewable energy via a Power Purchase Agreement, Part 1, Introduction

 

An introduction to PPAs
An introduction to PPAs

In a previous blog post, we analysed eight ways to reach 100% renewable electricity, looking at several buy and build options. In last week’s blog post, we investigated various EPC (build) options. In today’s article, we will shed more light on buying renewables via Power Purchase Agreements (PPAs).

In next week’s blog post (Part 2), we will look at the PPA options in greater detail.

What is a Power Purchase Agreement?

A Power Purchase Agreement (PPA) is an agreement between a buyer and a generator to buy renewable energy at an agreed price for an agreed period of time.

In the ‘traditional’ electricity market only large energy retailers and a small handful of very large energy users buy power directly from generators. In the emerging renewable energy market corporates and groups of businesses are seeking to engage with specific renewable energy projects.

In the past few years, we have seen both corporations and local governments entering into long-term Power Purchase Agreements with the aim to reduce electricity costs, manage volatile electricity prices and meet carbon reduction targets.

Under a PPA, you negotiate a rate per megawatt hour that covers all costs including financing, construction and maintenance of a renewable energy asset. No capital investment is required. The renewable energy project developer owns the generation asset, and the performance risk also sits with the developer.

How can you enter into a PPA?

Currently, the corporate PPA market in Australia is still immature. However, the market is evolving rapidly partly due to the increased appetite of consumers for renewable energy and partly due to the cost differential between regular grid power and long-term PPA prices.

With more and more deals being made, there are now numerous models available that can be tailored to fit your situation. For instance, major retailers are examining corporate PPA products that integrate renewable and grid power into a single agreement – supplied from their existing portfolio of utility-scale projects. This will make it easier for you to enter into a PPA. Numerous smaller and emerging retailers are seeking to package and offer renewable energy PPAs from project portfolios, with innovative and more flexible contract terms that aim to deliver value over the contract term.

Before going to market for a PPA, you need to understand your own electricity demand profiles and how this might change over the term of a PPA contract. For instance, as you implement LED lighting, install solar PV, or acquire new assets, your demand profile may change.

It will also help if you are informed about the key risks (market, delivery, firming, intermittency of generation, duration) you want to manage. You should consider engaging advisors who are appropriately qualified to help you get the best deal for your circumstances.

Using the electricity from your PPA to offset your energy consumption

Energy efficiency and onsite solar PV installations are only able to reduce your carbon and energy footprint by a certain percentage. If you are looking to increase your renewables further, you need to look outside the box and consider either building a mid-scale plant yourself or purchasing the output from another renewable energy plant.

An advantage of offsite PPAs is that you can power multiple sites with a single project. Offsite PPAs also overcome problems such as availability of space or renewable resources at your sites’ locations and can offer economies of scale due to their size. It is up to you to choose the percentage of renewables. You could go to market for 20% of your load, or 100% of your load, or start small and progress to 100% renewables over several contracts.

If you are only purchasing the ‘black’ portion of renewable energy generation, so only the power portion (please see next section), you need to be careful about how you frame your renewable energy claim. If you are also purchasing the LGCs from the project and retiring them, then you can claim both the renewable energy as well as the carbon reduction of the renewable energy production.

Bundled versus LGC-only PPAs

Power Purchase Agreements can be undertaken for power only (the ‘black’ portion), the green attributes of the power (the ‘LGCs’), or for both (‘bundled’). Purchasing the electricity will only provide a medium to long-term hedge against volatile electricity prices but does not include the purchase of LGCs. A bundled agreement is likely to achieve a lower price for the LGCs than an LGC-only agreement.

Bundled versus LGC-only PPAs
Bundled versus LGC-only PPAs

Entering into an LGC-only PPA means that no load balancing needs to be undertaken, whereas a bundled agreement means that for ‘sleeved’ and ‘direct’ PPAs, your energy needs will have to be balanced with energy produced from renewable energy generators.

If LGCs are on-sold or used to offset the compliance obligation, a bundled contract is a more comprehensive hedge against future price volatility. A bundled contract hedges against both electricity and LGC pricing.

Should you undertake a PPA?

PPAs are a great way to achieve your carbon reduction and renewable energy goals while providing a hedge against volatile electricity prices. However, to undertake a PPA a change in thinking is required. While, typically, organisations are used to procuring electricity for between one and three years, in the current market a PPA is a long-term commitment, typically around 10 years or more.

To achieve a good price and to make your effort worthwhile, it is advantageous to have a sizeable energy consumption. Unless you are a large energy user, you should consider aggregating your energy demand with other organisations that have similar objectives to you.

The current PPA market has great opportunities for buyers of renewable energy with competition for customers, continuing low-interest rates, a large number of planned new projects and declining technology costs.

Setting up a PPA can be complex and time-consuming, so we recommend working closely with a trusted advisor to determine which option is best for your organisation. Please contact Barbara or Patrick to find out more.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Building your own grid-connected solar farm under an EPC contract

In a previous blog post, we analysed eight ways to reach 100% renewable electricity, looking at various buy and build options. In this blog post, we will shed more light on the EPC (build) options.

The volatility of wholesale electricity prices in recent years had many organisations consider building their own mid-scale solar farm to mitigate this risk. Also, installing solar PV on facilities can have an upper limit due to available roof size or suitability, so some organisations are considering building one big solar farm instead that can supply them with renewable electricity.

What is a mid-scale solar farm?

There is no official definition of the size of such a system, but it typically ranges between 0.5 MW and 10 MW (as opposed to utility-scale systems, which are much larger). Mid-scale systems usually connect to the distribution rather than the transmission network, which makes them cheaper to implement than utility-scale plants. They are NOT serving any behind-the-meter loads.

How can you build your own mid-scale solar farm?

You will need to invest capital and directly or indirectly manage the construction of a renewable energy asset, typically through an Engineer, Procure, Construct (EPC) Contract. Given that you are constructing a new generation asset, your contractual arrangements must cover site preparation, approvals, construction and maintenance.

Upon commissioning or after an agreed period of operation the ownership of the plant is transferred to you. At this stage, you take on the management and risk of the ongoing performance. Your greatest interest will be the technical aspects of your solar farm.

Using the electricity from your solar farm to offset your energy consumption

When you install solar PV behind your meter, every kWh that your system produces displaces energy consumption from the grid. There is no need to ‘sell’ the produced energy to yourself. The situation is different when you run a grid-connected solar farm that does not serve any behind-the-meter load and instead is connected to the grid. If your renewable energy project is in front of the meter, you must sell the generated electricity into the market, like any other generator.

Under National Energy Market (NEM) rules, all energy projects must have a retailer to sell the energy to the market. The retailer will balance your load when your renewable energy plant is not generating or not generating at full capacity and will provide other risk management services for you.

Classification of solar farms under AEMO rules

Under Australian Energy Market Operator (AEMO) rules, your solar farm will likely be classified as either exempt, non-scheduled, or semi-scheduled depending on the extent to which it will be participating in central dispatch.

  • Exempt – Plant size is less than 5 MW
  • Scheduled – The generating unit participates in central dispatch. Plant size is greater than 30 MW.
  • Non-Scheduled – The generating unit does not participate in central dispatch. Between 5 MW and 30 MW if some or all energy is sold in the NEM. Less than 30 MW if energy output is purchased by a local retailer or a customer located at the same connection point. However, ‘local use’ means that no more than 50% of the electricity supplied can be exported to the network.
  • Semi-Scheduled – The generating unit will participate in central dispatch in specified circumstances. Greater than 30 MW. However, AEMO can – at its discretion – classify the renewable energy plant as a scheduled generator.
Types of energy generators under AEMO rules
Types of energy generators under AEMO rules

Common ways to sell renewable electricity from your solar farm

Given that you need to sell the electricity into the market, it is worthwhile investigating different ways you can do this. In this blog post, we will focus on the most likely models, being a fixed price and spot market EPC.

EPC and sell fixed-price offtake

Under this model, you undertake an EPC construction agreement and sell the generation at an agreed fixed price per MWh (typically at a discount to market) to an offtaker. The offtaker can be a third party or your own organisation if you wish to balance your energy consumption with the renewable energy generation from your solar farm. As per NEM rules, a retailer needs to pass through or ‘sleeve’ this agreement.

Depending on your objectives, you can sell or purchase the Large-Scale Generation Certificates (LGCs) from your solar farm. For implications of selling or retiring the LGCs, please read our blog post on What you need to know about accounting for LGCs.

If your solar farm is bigger than 5 MW AC, your project will likely need to be registered as a semi-scheduled generator with AEMO. This means that AEMO can curtail your energy output or ask you to stop generating when there is network congestion (see picture at the top of this blog post). This won’t be the case if your project is smaller than 5 MW – you will receive an automatic exemption from AEMO.

EPC and receive spot market revenue

Under this model, you will register your solar farm as a generator which will likely be a semi-scheduled market generator (less than 30 MW generation) market participant under AEMO rules. Your renewable energy generation will be sent to the market via an export meter, and you will receive spot market revenue from AEMO.

Like with the option above, AEMO may curtail your energy output, which will affect the business case of your solar farm (unless your solar farm is smaller than 5 MW in size).

Should you build your own solar farm?

Building your own solar farm is a long-term investment that requires management of the construction process with significant up-front costs before any benefit can be realised. In addition, the underlying technology costs are on a downward trajectory which reduces your asset value over time.

However, if you have access to cheap, suitable land and if your cost of capital is low, this will improve your business case. Adding a shadow carbon price into your business case further improves it.

Your benefits depend on what price you can sell (and purchase) your generated electricity for, whether you will sell your LGCs which will generate additional income and the difference between this and your regular grid cost for electricity. Each situation is different, and if you are interested in evaluating your options further, you should consider asking specialists like 100% Renewables for help – please contact Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog. 

What you need to know about accounting for LGCs, STCs, ESCs, VEECs, ACCUs

100% RE - Carbon accounting for LGCs STCs ACCUs ESCs etc
100% RE – Carbon accounting for LGCs, STCs, ACCUs, ESCs, etc.

For many sustainability managers, navigating the many acronyms that exist for renewable energy certificates like LGCs and state-based certificate schemes like ESCs for carbon reduction activities can be confusing. Some schemes are federal; others are state-based. Some relate to energy, others to carbon. Some can be used for carbon reduction; others can’t. To make sense of these three and four-letter acronyms, we thought it was time to publish a blog post on this topic.

Renewable Energy Certificates (RECs)

Description

Once electricity from renewable sources enters the grid, it mixes with electrons from multiple sources, like coal-fired power plants, and becomes indistinguishable. To track renewable energy, Renewable Energy Certificates (RECs) are assigned for every megawatt hour created from renewables. Each REC is assigned its own unique number to track the ownership of the environmental (and social) benefits of the renewable energy. They can be traded separately from the underlying electricity.

Renewable Energy Certificates (RECs)
Renewable Energy Certificates (RECs)

Renewable Energy Certificates (RECs) were created to spur the development of renewable energy generation through a market-based mechanism of supply and demand. A REC has a financial value attached to it, which fluctuates depending on prevailing market conditions.

In Australia, RECs are supported by Australia’s Renewable Energy Target, which states that by 2020, 33,000 GWh must be generated from renewable sources (this equates to about 23.5% of the overall total). The scheme ends in 2030.

RECs are divided into Small Scale Technology Certificates (STCs) and Large-Scale Generation Certificates (LGCs).

Treatment

The party that owns the REC owns the claim to that megawatt hour of renewable energy. Renewable energy certificates are used to offset electricity consumption. They cannot be used to offset other emission sources like fuel consumption or Scope 3 emissions like waste or business travel.

Small-scale Technology Certificates (STCs)

Description

STCs are like an upfront subsidy for renewable energy systems that are under 100kW. They are deemed upfront and come with your renewable energy installation.

Treatment

Under previous Australian carbon accounting rules (NCOS Standard) selling the STCs (i.e., claiming the subsidy) meant that you were not allowed to account for the emission reduction. However, under revised NCOS rules, behind-the-meter energy usage originating from small-scale onsite generation systems can now be treated as zero-emissions energy, regardless of whether any STCs have been created, sold or transferred to any other party. This applies to systems installed in the past as well as future installations.

As such, you can add the self-consumption of electricity from your solar PV systems to your total demand for electricity, and this generation is treated as zero-emissions electricity for your carbon footprint. You can also use the generated renewable electricity against your renewable energy target.

Large-scale Generation Certificates (LGCs) from onsite renewable energy generation

Description

If your renewable energy system is larger than 100kW, you are eligible for one LGC for every megawatt hour your solar PV system generates. As opposed to STCs, the LGCs are not deemed upfront. You need to keep track of your renewable energy generation on an annual basis to be able to create and then sell LGCs. While LGCs currently have a much higher market value than STCs, this can change in line with the supply and demand for certificates by liable entities (like electricity retailers).

Treatment

If you sell the LGCs, you will generate income. However, if you sell your LGCs, the carbon reduction and renewable energy generation associated with the energy generated cannot be claimed.

According to the NCOS Standard, behind-the-meter energy usage originating from large-scale onsite generation systems that have created LGCs can be treated as zero-emissions energy only if the equivalent amount of LGCs are voluntarily retired. Behind-the-meter energy usage that is not matched by an equivalent amount of voluntarily retired LGCs must be accounted for in the same way as grid-based energy, and offset accordingly if a carbon neutral strategy is pursued.

Large-scale Generation Certificates (LGCs) from offsite renewable energy generation

Description

Rather than having a system onsite, you can purchase LGCs from a renewable energy project that is grid-connected, or offsite. There are principally two options to purchase offsite LGCs – either through a Power Purchase Agreement (PPA) or through a broker.

Treatment

Large-scale Generation Certificates (LGCs) are treated the same as the purchase of GreenPower® provided the certificates are retired. If you have entered into a PPA without obtaining and retiring the LGCs (purchasing the black portion only), then you cannot claim the emissions reduction/renewable energy attributes from the project.

 

A note on surplus electricity

The treatment of surplus electricity from renewable energy and batteries from the perspective of renewable energy and carbon abatement claims is complex. You can read more about this topic in our blog post at  https://100percentrenewables.com.au/how-to-account-for-exported-solar-electricity/.

GreenPower®

Description

The GreenPower® program is an independent government accreditation scheme and is recognised as the most highly regarded standard for offsite renewables in Australia. GreenPower® purchases are additional to Australia’s Renewable Energy Target, and an extensive two-tier auditing process ensures that no double counting can occur. To purchase GreenPower®, you can approach your electricity retailer, buy from an independent provider, decoupled from your electricity agreement or through a GreenPower® PPA.

Treatment

The purchase of GreenPower® is considered to be equivalent to the direct use of renewable energy. This means that you can claim the emissions reduction associated with this action. You can also use purchased GreenPower® towards your renewable energy claims.

Australian Carbon Credit Units (ACCUs)

Description

The Emission Reduction Fund (ERF) is a voluntary scheme that provides incentives for organisations and individuals to adopt new practices and technologies to reduce their emissions. Participants can earn ACCUs for emissions reductions. The ACCUs can be sold to the Commonwealth under a carbon abatement contract with the Clean Energy Regulator, or they can be sold on the voluntary market and are eligible as offset units under the National Carbon Offset Standard.

Treatment

If you generate ACCUs from emissions reduction projects occurring within your boundary, you can claim the reduction as part of your carbon account only if the ACCUs from your projects are voluntarily retired. If the ACCUs are not retired, you are required to account for your emissions without the reductions associated with the projects (i.e. as though the projects had never occurred).

Carbon offsets

Description

One carbon offset represents one tonne of carbon emissions that are not released into the atmosphere, that occur as a result of a discrete project. The emissions reductions from a particular carbon offset project can be sold to enable the purchaser to claim those carbon reductions as their own. Renewable energy is one type of offset activity, but there are many others like energy efficiency or forestry projects.

Treatment

Carbon offsets can be used to offset any emission source, including ones that are not electricity related. You cannot use carbon offset for any renewable energy claims.

State-based white certificate schemes

Description

Several jurisdictions have energy efficiency schemes that require energy retailers to achieve energy efficiency in their customer portfolio. The NSW Energy Savings Scheme and the Victorian Energy Efficiency Target Scheme are the biggest in terms of number of certificates. The ACT and South Australia operate similar, but smaller schemes mainly targeting households and small business.

Energy Savings Certificates (ESCs) – New South Wales only

ESCs created under the Energy Savings Scheme (ESS) reward energy-saving projects through a financial value on every tonne of carbon that is abated by an organisation. The objective of the scheme is to reward companies that undertake projects that either reduce electricity consumption or improve the efficiency of energy use. The ESS began on the 1st July 2009 and is part of the NSW Government’s plan to cut greenhouse gas emissions. The scheme is legislated to run until 2025 or until there is an equivalent national energy efficiency scheme.

Victorian Energy Efficiency Certificates (VEECs) -Victoria only

The VEET scheme was established under the Victorian Energy Efficiency Target Act 2007 and commenced on 1 January 2009. Each VEEC represents one tonne of carbon dioxide equivalent (CO2-e) abated by specified energy saving activities known as prescribed activities. The abatement is calculated by comparing the difference between the energy use after the completion of an upgrade or project and the ‘baseline’ energy use, which refers to the amount of energy that would have been used if the energy efficient installation/project had not taken place. VEECs are bought by large energy retailers with a liability under the scheme.

Treatment of white certificate schemes

You are not required to account for state or territory-based energy efficiency schemes. Emissions reductions resulting from activities supported by these schemes can be counted towards your carbon account regardless of whether any associated certificates have been created, sold or transferred to any other party. So, in short, you can claim the ESCs/VEECs/other white certificates and the carbon reduction.

 

Carbon accounting for all these different federal and state schemes can be confusing, as may be accounting for your Scope 3 emissions. If you need an expert to help you with putting your carbon inventory together, please contact Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog. 

Summary tables of ambitious carbon and renewables commitments in Australia by states, territories and local governments

Ambitious climate change commitments by Australia's states and local governments
Ambitious climate change commitments by Australia’s states and local governments

Last week, we published a blog post with state-by-state graphics of ambitious carbon and renewables commitments by local governments in Australia. This week, we are following up with publishing summary tables of these climate change commitments.

Below are three tables that showcase the commitments of states and territories, followed by capital cities, and local governments.

States’ and territories’ climate change commitments

States and territories are committing to both renewable energy as well as carbon reduction targets.

State or territoryRenewable energy commitmentCarbon commitment
Australia~20% from renewable energy sources by 2020 (33,000 GWh by 2020)26-28% emissions reduction from 2005 levels by 2030
ACT100% renewable electricity by 202040% reduction in greenhouse gas emissions on 1990 levels by 2020
Zero net emissions by 2045
NSW20% from renewable energy in line with the RETZero net emissions by 2050
NT50% renewable energy by 2030
SANo new target. 50% renewables target by 2025 largely met.Zero net emissions by 2050
QLD50% renewable energy by 2030Zero net emissions by 2050
VIC40% renewable energy by 2025Zero net emissions by 2050
TAS100% renewable energy by 2022Commitment to establish a zero net emissions target by 2050
WANo targetNo target

South Australia previously had a commitment to 50% renewable energy. However, according to a report by the Climate Council,  South Australia was able to achieve a 43.5% energy production from renewables in 2017. This means that with increasing renewable energy production in 2018, their target is largely met. Since the new Government came in, no new commitments have been made.

Capital cities’ climate change commitments

Australian capital cities have mostly committed to carbon reduction goals, with many of them targeting or having already achieved carbon neutral/net zero emissions status.

Capital CityCommitment
ACT GovernmentCarbon neutral by 2020
City of AdelaideZero net emissions from council operations by 2020
First carbon neutral town by 2050
Brisbane City CouncilCarbon neutral council from 2017
Melbourne City CouncilCarbon neutral council by 2020
City of PerthReduce council emissions by 20% by 2020
Facilitate a 32% reduction in citywide emissions by 2031
City of Sydney*Reduce emissions by 70% for the LGA by 2030
50% renewable energy for the LGA by 2030
Net zero emissions for the LGA by 2050

*The City of Sydney has made a pledge to achieve 100% renewable energy, with details to come in the Sustainable Sydney 2050 strategy, which will be developed in 2019.

Local governments’ and LGAs’ climate change commitments

This table showcases ambitious carbon and energy commitments by local governments and their communities. If you are interested in learning more about the difference between renewable energy and carbon targets, you should read our blog post on whether carbon neutral and 100% renewables are the same.

New additions to the list of local governments include Moreland Council, City of Darebin, Broken Hill Council, Logan Council, Noosa Council, Hepburn Council, Mornington Peninsula Council, Warrnambool Council, Nambucca Council and the City of Randwick Council.

Council or Local Government AreaCommitment
Byron Shire Council100% renewable energy by 2027
Net zero emissions by 2025
Byron Bay communityPlan for first zero net emissions community
City of Greater Bendigo100% renewable energy by 2036
Coffs Harbour City Council100% renewable energy by 2030
Eurobodalla Shire Council100% renewable energy by 2030
City of Fremantle100% renewable energy by 2025
Carbon neutral since 2009
Zero carbon for LGA by 2025
Gold Coast City CouncilCarbon neutral by 2020
City of Greater GeelongZero carbon council by 2050
Lismore City CouncilSelf-generate all electricity needs from renewable sources by 2023
Mullumbimby100% renewable energy by 2020
Newstead Village100% renewable energy by 2017
City of ParramattaCarbon neutral by 2022 with 60% emissions reduction by 2038 based on 2015 levels
Port Macquarie-Hastings Council100% renewable energy by 2027
City of Port PhillipZero net emissions by 2020
Tweed Shire Council50% renewable energy by 2025
Tyalgum VillagePlan to be off the grid, 100% renewable energy, with batteries
Uralla TownPlan to be first zero net energy town
Yackandandah Town100% renewable energy by 2022
Moreland Council100% renewable energy by 2019
Carbon neutral for operations since 2012
Zero carbon emissions Moreland by 2040
City of DarebinZero net carbon emissions across Darebin by 2020
Broken Hill Council100% renewable energy status by 2030
Logan CouncilCarbon neutral by 2022
Noosa CouncilNet zero emissions by 2026
Hepburn CouncilCarbon neutral by 2021
Mornington Peninsula CouncilCarbon neutral by 2021
Warrnambool CouncilCarbon neutral city by 2040
Nambucca CouncilZero net carbon emissions within the 2030 to 2050 time frame
Randwick CouncilZero emissions by 2030

100% Renewables is specialised in helping local governments define and achieve their renewable energy and carbon goals. Please speak to Barbara or Patrick for more information.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog. You can also contact us for a copy of the commitment graphics – they are available as standalone JPGs for each government level.

Ambitious carbon and renewable energy commitments by local governments in Australia as at October 2018

via GIPHY

100% Renewables had the pleasure to catch up with many of our clients at the recent Cities Power Partnership Summit in Kiama. The Cities Power Partnership is Australia’s largest local government climate network, made up of over 100 councils across the country, representing almost 11 million Australians. Local councils who join the partnership make five action pledges in either renewable energy, efficiency, transport or working in partnership to tackle climate change.

The summit started with an inspiring international keynote address from US renewable energy visionary Mayor R. Rex Parris of Lancaster, California. Lancaster was the first city in the United States to require solar panels on new homes and has a plan to become the first zero net energy city, generating as much renewable electricity as it consumes.

While planning rules are different in Australia, Mayor Rex’s speech resonated strongly with participants. With many of the following presentations showcasing innovative renewable energy projects by Australian councils, it became clear that we can be climate leaders, too, and that ambitious commitments and actions are needed to avert catastrophic climate change.

100% Renewables has been tracking ambitious sustainability commitments made by all levels of Australian government since we developed the Renewable Energy Master Plan for Lismore City Council in 2014. In May 2017, we published our first blog post on the energy and carbon commitments of states, territories and local governments. In March 2018, we posted an update of the carbon and renewable energy commitments.

Our updated review of carbon and renewable energy commitments, immediately following the Cities Power Partnership summit, reveals that local governments are accelerating their commitments and implementation of actions to drive sustainability outcomes. In addition, the ACT Government continued to demonstrate its leadership in climate action at the summit, talking about their plans for sustainable transport and extending an offer to local governments to join in their initiative to source electric vehicles in the ACT Government fleet.

Updated local government ambitious renewable energy and carbon commitments

With more and more local governments committing to ambitious goals, we developed state-by-state graphics that show these commitments. The ACT, NSW and Victorian councils are leading the way. Five graphics show the extent of local government commitments below, with capital cities and the ACT highlighted in orange.

As more and more councils commit to substantially reduce their emissions and source their own energy needs from renewables we will capture these and share them in the future. In addition, we will capture and report on commitments made for communities.

Ambitious renewable energy and carbon commitment by NSW councils and the ACT Government

Ambitious renewable energy and carbon commitments by local governments in NSW and the ACT as at Oct 18
Ambitious renewable energy and carbon commitments by local governments in NSW and the ACT as at Oct 18

Ambitious renewable energy and carbon commitment by VIC councils

Ambitious renewable energy and carbon commitments by local governments in VIC as at Oct 18
Ambitious renewable energy and carbon commitments by local governments in VIC as at Oct 18

Ambitious renewable energy and carbon commitment by QLD councils

Ambitious renewable energy and carbon commitments by local governments in QLD as at Oct 18
Ambitious renewable energy and carbon commitments by local governments in QLD as at Oct 18

Ambitious renewable energy and carbon commitment by SA councils

Ambitious renewable energy and carbon commitments by local governments in SA as at Oct 18
Ambitious renewable energy and carbon commitments by local governments in SA as at Oct 18

Ambitious renewable energy and carbon commitment by WA councils

Ambitious renewable energy and carbon commitments by local governments in WA as at Oct 18
Ambitious renewable energy and carbon commitments by local governments in WA as at Oct 18

100% Renewables specialises in helping local governments and their communities define and achieve ambitious carbon and renewable energy goals. If you are interested in hearing more about our projects with councils, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.”