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Electricity Procurement

The Victorian Greenhouse Alliances initiated a renewable electricity purchasing project for Victorian councils.


The Local Government Power Purchase Agreement (PPA) PPA is the largest ever emissions reduction project undertaken by local government in Australia.

The landmark initiative will enable 47 Victorian councils to switch to 100% renewable energy from mid 2021. The ‘buyers group’ aggregates over half of the entire sector’s electricity load – equivalent to powering 44,500 homes with renewable energy or taking 82,800 cars off the road each year.
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The project will secure renewable energy to power municipal offices, leisure centres, streetlights and community buildings. Councils participating in this project recognise the benefits of renewable energy for local economies and job creation, environmental purposes, and reducing costs.
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The project was initiated and facilitated by the Victorian Greenhouse Alliances and is now being administered via Darebin City Council who will oversee procurement activities relating to the tender process. A business case was developed for the project which provides confidence that a PPA will help reduce costs, protect councils against energy market volatility, improve budget certainty, and assist in reducing greenhouse gas emissions.

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A discussion paper provides a summary of opportunities for Victorian councils to collectively procure best value electricity whilst meeting multiple policy commitments and objectives, particularly with respect to emissions reduction.

Click on the image on the left to download the paper. ​

This paper informed the development of the Electricity Working Group. The feasibility studies on large scale solar and local energy trading will also inform the work of the group.


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