The Australian Infrastructure Renewable Energy Program, led by Australian infrastructure fund managers IFM Investors and QIC, has reached the 3rd and final stage with several new names signing up to offtake power from over 500 GWh/annum program.
Launched in March 2022, the program aims to facilitate the supply of more than 500 GWh of renewable energy annually. Valued at more than AUD 700 million ($463 million), the program will help critical infrastructure businesses in IFM and QIC portfolios save costs, reduce exposure to energy market volatility and cut emissions.
"Through this important renewable energy program, we are contributing to the net zero ambitions of some of Australia's most significant infrastructure assets, while also reducing our assets' exposure to energy market volatility and delivering cost-savings through renewable energy," said QIC Head of Global Infrastructure Ross Israel.
How this program works is that both IFM and QIC facilitate the making of offers by energy retailers and generators to the participating assets to supply renewable energy. The latter are then at liberty to enter into a power purchase agreement (PPA) with the supplier.
Stage 1 assets included Melbourne Airport, NSW Ports, Southern Cross Station, Ausgrid, Nexus Hospitals, NorthWestern Roads Group's WestLink M7 and Transurban's CityLink. Brisbane Airport signed up under stage 2 of the program. Origin Energy and Stanwell are the suppliers to these assets.
The final stage, stage 3 has additional infrastructure and healthcare assets sign up. These are Sydney Airport, Adelaide Airport, PRP Diagnostic Imaging, Port of Melbourne, Lochard Energy, Nexus Hospital, and Healius Limited. Iberdrola and Squadron Energy are the energy suppliers for stage 3.
According to the program promoters, the demand for renewable energy created by the program could lead to further investment in renewable energy projects. It will enable the participants to reduce their Scope 3 emissions.
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