In 2020, Energetics has continued to advise leading corporates as they engaged in the burgeoning renewable power purchase agreement (PPA) space. Earlier this year, we highlighted the surge in corporate PPA transactions taking place in Australia and how, in only a few short years, the way corporates procure their energy and frame their sustainability obligations has evolved considerably.
As of last week, the Clean Energy Regulator (CER) published their annual Renewable Energy Target (RET) report. Of note were the sustained levels of renewables entering the grid following the achievement of the 2020 RET in late 2019. This was predominantly driven by corporate demand. To quote the report, “77% of the total large-scale renewable project pipeline” was underpinned by corporate PPAs. In 2019 alone corporate PPAs enabled “over 500 megawatts of new utility-scale renewable capacity”.
The findings by the regulator align with Energetics’ Corporate Renewable PPA Tracker, which shows agreements in 2019 totalling circa 650MW.
Looking forward, the CER foresees continued growth in the voluntary Large-scale Generation Certificate (LGC) market following a 7% increase in demand in 2019. Market participants are increasingly reporting to the CER innovative new models in the use of these certificates. Working with large energy users, Energetics is developing alternative procurement strategies for LGCs supporting broader net-zero targets.
Please contact any of our energy markets experts for further insights and advice.