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Councils collectively save on energy

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09 Jan, 2025

This post was originally published on Sustainability Matters

Thirteen regional New South Wales councils have pooled their resources to make the shift to renewable energy via a power purchase agreement (PPA) coordinated by the Hunter Joint Organisation and Mid North Coast Joint Organisation.

The Powering Tomorrow: Regional Councils NSW PPA will secure fixed pricing for the councils up until the end of 2030. Under the agreement, the councils will collectively receive over 390 gigawatt hours of electricity for 163 large council sites and streetlighting.

The participating councils are Bellingen Shire, Berrigan Shire, Edward River, Griffith City, Leeton Shire, Maitland City, MidCoast, Murray River, Murrumbidgee, Muswellbrook Shire, Narrandera Shire, Port Macquarie-Hastings and Upper Hunter Shire.

Over the six years of the agreement, an estimated 83% of the electricity supplied to council sites will be from renewable energy generators in NSW, with nine of the 13 councils opting for 100% renewable energy for the entire term.

The PPA brings various benefits for the participating councils:

Emissions reduction: By opting for renewable energy to power their large sites and streetlighting, the councils will avoid an estimated 185,000 tonnes of carbon dioxide emissions (t/CO2e) over the duration of the agreement. The procurement of renewable energy though this deal will help the councils to decarbonise their operations and progress towards local, state and national net zero targets.

Cost savings and budget certainty: By purchasing as a group, the councils were able to lock in renewable electricity at a competitive price through to the end of 2030, collectively saving an estimated $5.3m compared to their 2024 electricity rates. The deal also shields councils from volatility in the electricity market that can unexpectedly increase costs, providing long-term budget certainty.

Supporting the local economy: Renewable energy purchased under the deal will come from several of Iberdrola Australia’s NSW-based renewable energy projects: the Capital Wind Farm, Avonlie Solar Farm and Bodangora Wind Farm. This will create jobs and foster the growth of new energy sectors, contributing to the development of a sustainable energy future across NSW.

This wide-reaching cross-regional collaboration between the 13 councils would not have been possible without the support of the NSW Government’s Joint Organisation Net Zero Acceleration (JONZA) program. The initiative was also assisted by advisors Sourced Energy, Regional Procurement, Procure Group and Baker Mackenzie.

Image credit: iStock.com/Thinnapob

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Energy Efficiency as an Imperative Climate Strategy

Energy Efficiency as an Imperative Climate Strategy

With mandatory climate statement disclosure rolling out in Australia, businesses need to start reporting on their emissions and sustainability plans for the future. As companies begin assessing the relevant risks and opportunities related to various climate scenarios, energy efficiency presents itself as an immediate climate-strategy with long-term benefits.

Commencing 1 January 2025, businesses that meet two of the three conditions — more than 500 employees, gross assets above $1 billion or $500 million or more in consolidated gross revenue — are required to lodge a climate statement, which discloses their climate-related plans, financial risks and obligations. As part of the gradual roll-out, by 1 July 2027, businesses that meet two of these conditions — more than 100 employees, gross assets above $25 million or exceeding $50 million in consolidated gross revenue — will also be required to report.

This climate statement will need to include the company’s sustainability governance, climate risks and opportunities, including those physical and transition related. They will also need to disclose their Scope 1 and 2 emissions, strategy to decarbonise, and conduct scenario analysis on the short, medium and long term impacts on the business. By the second year of reporting, businesses will also be expected to report on Scope 3 emissions.

Scenario analysis will be based on various assumptions of the state of the climate, one of which includes a possible future where global temperature has increased 2.5°C or more. They will be required to share their climate strategy and steps they are taking long-term in preparation for this scenario.

Common themes within climate strategies will include switching to renewable energy sources, electrifying fleet vehicles, purchasing carbon credits, and carbon capture and storage. Many of these methods look at reducing emissions through the energy source, or targeting the carbon aspect directly; however, climate strategies can also include reducing the amount of energy used. By investing in more energy efficient equipment, sites can maintain production whilst using less energy and producing less emissions.

When increasing energy efficiency and reducing energy consumption first, businesses will see short-term impacts; however, in the long term, they are also improving their foundation for an energy transition. Assuming no other changes, higher energy efficiency can lead to decreased energy demand, allowing for reduced system requirements when specifying and planning for self-generation or energy costs.

To understand what opportunities are available for upgrading to more energy efficient equipment, businesses can start with an energy audit to understand how energy is being consumed across site. Energy audits, like the ABB Energy Appraisal, can provide a roadmap for where and how equipment can be upgraded for the best energy saving potential. An energy audit identifies areas that can be immediately improved with existing equipment on the market, so there is no need to wait for the commercialization or development of more sustainable technology. Going beyond just changing all lights to LEDs, efficiency recommendations may include areas where variable speed drives can be added to control motor speed or upgrading from an IE3 motor to an IE5 ultra-premium efficiency or IE6 hyper-premium efficiency motor to reduce energy losses by 40% or more. This area can often be overlooked on sites as the Minimum Energy Performance Standard (MEPS) in Australia for motors is just IE2.

Mostly used in pumps, compressors, conveyors and fans, motors may seem like a minor part of a site; however, with 45% of the world’s electricity converted into motion by industrial electric motors, there are many opportunities for energy savings. In fact, a recent survey commissioned by ABB IEC Low voltage motors, showed that 92% of surveyed businesses in Australia recognize the important role of electric motors in achieving sustainability targets. In this same survey, participants ranked a reduction in operating cost as a more important driver for investing in energy efficiency than lowering their organization’s emissions. This is because upgrading to newer, more efficient equipment provides benefits beyond just emission reduction. For example, ABB’s Synchronous Reluctance (SynRM) Motors, available in IE5 ultra-premium efficiency or IE6 hyper-premium efficiency, use no rare earth metals or magnets. Running quieter and with bearing temperatures reduced by up to 15°C and winding temperatures by up to 30°, SynRM motors have longer maintenance periods, superior reliability, and contribute to a better operational environment.

Looking ahead, upgrading to an IE5 SynRM motor also provides more visibility into Scope 3 emissions, as SynRM motors meet ABB’s circularity criteria and transparency on environmental impact is provided through Environmental Product Declarations (EPDs).

By requiring companies to disclose their climate information, these new legal requirements are opening the door and facilitating more internal discussions on environmental impact and emission reduction. Whilst mandatory climate reporting is only required of large business entities this year, the progressive roll-out and Scope 3 emission reporting requirements mean that businesses of all sizes in Australia will be impacted by these new requirements. As businesses become more conscious of how sustainability should be integrated into their operations and finances, there is no better time to start investing in energy efficient solutions.

For more information, click here.

Image credit: iStock.com/denizunlusu

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