Baker McKenzie Advises 13 NSW Councils on a Buyer’s Group PPA for Renewable Energy, Which Will Reduce Carbon Emissions and Save on Energy Bills

Baker McKenzie has successfully secured a Power Purchase Agreement (PPA) under which, Iberdrola will supply more than 390 GWh of electricity to 163 large council sites and streetlighting across the 13 participating council areas. The agreement is effective from 1 January 2025 and extends through until the end of 2030.

The PPA, devised under what is known as The Powering Tomorrow: Regional Councils NSW PPA was coordinated by the Hunter Joint Organisation. By collaborating, the participating councils increased their collective buying power to secure a competitive deal and reduced the procurement costs by sharing resources and fees.

Baker McKenzie's lead partner, Aylin Cunsolo stated: "By opting for renewable energy to power large sites and streetlighting, the councils will avoid an estimated 185,303 tonnes of carbon dioxide equivalent (t C02-e) emissions over the duration of the agreement, whilst also achieving cost savings and budget certainty."

The majority of the Councils opted for 100% renewable energy under the PPA. Simultaneously, the 13 councils will collectively save an estimated AUD 5.28 million through to the end of 2030 compared to 2024 electricity costs, and the price certainty secured through this PPA will protect the group against volatility in energy prices.

Aylin further commented that, "Renewable energy purchased under this deal will come from several of Iberdrola Australia's NSW-based renewable energy projects (the Capital Wind Farm, the Avonlie Solar Farm and the Bodangora Wind Farm), supporting the economy of regional NSW by creating jobs and fostering the growth of new energy sectors."

When asked about the value of collective PPAs such as this, Aylin stated: "This initiative not only benefits the 13 councils' and their communities, but also serves as a model for other councils seeking similar stability and sustainability."

Aylin was supported by a team comprising: Odette Adams and William Eefting.