- Victoria has issued a consulting paper for feedback on making renewable energy contracts easier for businesses to access
- Feedback received for the same will enable C&I consumers access clean energy at competitive prices and achieve their sustainability goals
- It will also enable the government to achieve its climate objectives of reducing emissions by increasing market share of renewables
- Government wants to process stakeholder comments to prepare an online marketplace that can address barriers for businesses to seek such clean energy deals
The State Government of Victoria in Australia is consulting with businesses to enable them better access renewable energy contracts using an online platform, by addressing barriers that ‘stop’ businesses from accessing and entering such deals. An online platform can enable them sign up for power purchase agreements (PPA).
A consultation paper launched by the Minister for Energy, Environment and Climate Change Lily D’Ambrosio is open to commercial and industrial (C&I) users of all sizes, electricity retailers, renewable energy developers, investors and financiers, power purchase agreement (PPA) facilitators and specialist service providers.
Through the consultation process, the government wants to improve accessibility of bilateral PPAs, while also help C&I electricity users achieve their sustainability objectives. It would also stimulate a stable pipeline of renewable energy projects in Victoria.
“This consultation is an opportunity for everyone including businesses and renewable energy providers to share their perspectives on how to reduce barriers to accessing low-cost, clean electricity,” added D’Ambrosio.
The state government believes PPAs for businesses will bring them clean energy at more competitive and definite electricity prices, while creating jobs and stimulating the economy.
Basis the feedback received, the government will frame an online Market Facilitation Platform (MFP) where information about new and existing renewable energy projects will be available that could also provide standard-form contracts, or contract terms to reduce the cost of developing contracts from the scratch. Interested participants will also be able to better understand the potential benefits and risks of a PPA with the help of market data and research.
The government will be open to receiving feedback on the Consultation Paper till November 26, 2021.
“By making it easier to enter into power purchase agreements, we will save businesses time and money and generate more demand for renewable energy − which will help us reach our target of halving emissions by 2030,” explained D’Ambrosio.
The state of Victoria aims to have 40% of its electricity mix come from renewable energy sources by 2025, and 50% by 2030. To achieve the same, it is conducting Victorian Renewable Energy Target Auction (VRET) under which it has awarded 928 MW solar and wind capacity for VRET 1. Successful projects under VRET 2 will be announced around mid-2022 (see 2nd VRET Auction Launched In Victoria).
Victoria is also planning to develop 6 renewable energy zones (REZ) through a new body called VicGrid under Department of Environment, Land, Water and Planning (DELWP).
