Australian Power Purchase Agreements Conference
The biggest risk for an energy consumer launching a longer-term ECA is clearly the risk that market prices will be much lower than those of a counterparty, commonly referred to as “tail risk”. Basically (and recalling that companies should seek independent advice and our personal interest as project promoters!), I think there are real benefits for companies that want to reduce energy costs – with an environmental element – that they guarantee their electricity load through longer-term retail agreements, that use renewable energy as a basis and allow experts to manage variability in the background. Australia`s most comprehensive clean and renewable energy exhibition and conference, All-Energy Australia, is set to host their biggest event. The City of Melbourne and a number of other MREP partners have decided to buy LGCs corresponding to their electricity consumption and buy an additional 20% on the offset market, for example. B from renewable energy projects abroad or from reforestation or savannah land management projects. Buying offsets from projects like this is cheaper than LGCs. However, a ECA should not be carried out lightly and is found with as many dangers as with forces. Ahead of the Australian Power Purchase Agreement Conference, we sat down with John to identify some of the most important thoughts that all companies should encounter before signing on the dot line. “The customer group`s 10-year commitment to sourcing renewable energy from the Crowlands Wind Farm has unlocked investments for the construction of this major project. In 2017, the City of Melbourne led a group of iconic organisations, local governments, cultural institutions and universities in a project to source and purchase its own renewable energy directly from the source. In the meantime, the group has signed an agreement with Pacific Hydro to source wind energy from its soon-to-be-completed Crowlands wind farm. This first agreement of this kind signalled a possible shift in the role of retailers to large energy consumers. We spoke with arron Wood, Deputy Mayor of the City of Melbourne, about this innovative new model and the role retailers can play in future agreements of this kind.
As electricity prices continue to rise, while the cost of renewables continues to fall, companies are increasingly turning to contracts to meet their energy needs. .