Renewable Energy Procurement - City of Melbourne

Renewable Energy Procurement

A guide to buying off-site renewable electricity

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This guide has been produced by the City of Melbourne, made possible through funding provided by the Carbon Neutral Cities Alliance.

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Contents

About this guide

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Corporate power purchasing agreements

4

Why do things differently?

10

Purchasing renewable energy

12

The energy market and renewables

18

Which model is the right model?

24

Project planning

30

The procurement process

42

Further Reading

49

Acronyms

49

Acknowledgements

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A Guide to Renewable Energy Procurement

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About this guide

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Companies and institutions are recognising the value of renewable energy purchasing through large-scale, long-term contracts. They have been adopted by many major international brands over the last decade. A number of recent announcements in Australia ? including from Telstra, Sunshine Coast Regional Council, and Sun Metals ? suggest that we will be seeing more of them here.

Through their purchasing decisions, large organisations such as councils, universities, corporations and infrastructure authorities have the power to drive investment in new renewable energy projects such as wind farms and solar parks.

These models have the potential to drive new investment in renewable energy and accelerate Australia's transition to a cleaner energy supply. They also deliver a host of benefits to the purchasers, including stable electricity prices and lower costs, as well as a reputation for leadership and innovation and investment in community programs.

This guide is all about how to procure electricity this way. It will help you:

?understand the opportunities

?understand what you need to know and how to get started

?make the business case

?plan the procurement process.

It doesn't deal with other ways to purchase renewable energy, such as installing small-scale rooftop solar, or entering into short-term electricity contracts. The guide is written from the perspective of Australia's east coast `National Electricity Market'. Electricity markets operate differently in various parts of the world. Many of the observations and lessons may be applicable in other markets, but some of the specifics may differ. If you are located outside Australia, you may need to undertake your own local research.

Throughout the document, you'll find case studies and tips drawn from our experience establishing the Melbourne Renewable Energy Project, and from other similar projects.

A Guide to Renewable Energy Procurement

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