Companies looking to buy renewable electricity can aggregate their electricity load (usage) with other companies to increase their buying power. This type of procurement is called aggregation or group buying.
Large-scale renewable energy procurement offers important benefits compared with smaller-scale contracting. It offers the potential to drive new investment in renewable electricity, delivering additional renewable energy to the grid, decarbonising both Australia’s grid and your business operations. Aggregating demand into one renewable energy PPA contract can deliver these benefits.
There are great examples of buyers group PPAs in Australia so far. Deals executed by BRC-A members include the Melbourne Renewable Energy Projects (MREP 1 and MREP 2), Lion Breweries & AHA (Australian Hotels Association), Southern Sydney Regional Organisation of Councils (SSROC 1 and SSROC 2), Victorian Energy Collaboration (VECO), Barwon Renewable Energy Partnership (BREP) and others.
There are several more ways in which group buying can be rewarding. Large-scale procurement can enable participating companies to gain access to social and environmental co-benefits – meaning that in addition to
decarbonising your business, your renewable energy contract can deliver your goals in key corporate social responsibility areas such as indigenous engagement, biodiversity conservation, ecological restoration, support for local community projects and education programs, and more.
Group buying offers an opportunity to strengthen relationships with key partners, suppliers and companies within your region. It enables you to share costs, reduce Scope 3 emissions (as well as Scope 2), learn together and build new connections. Group buying requires alignment between the partners; alignment of goals, timing and other factors.
If you are considering group buying, the first step is to understand what’s involved and find a buyers group. This can seem challenging alone. We can offer support for finding and facilitating corporate renewable energy buying groups. If you are interested in finding out more, please see our new Buyers Diagnostic Tool, or get in touch with Jackie McKeon email@example.com
As an important public asset, it is our duty to improve environmental impact and live up to the sustainability expectations of our stakeholders – our customer, our employees, … our community.
Leighton Wood, COO, Melbourne Conventions and Exhibition Centre, 2019