Melbourne Renewable Energy Project 2.0 - Renewable PPA transaction advisor (commercial and technical)

The City of Melbourne (CoM) has an ambitious climate action plan that is focused on leading by example and sharing solutions to climate change.[1] Building on the success and insights gained from the inaugural Melbourne Renewable Energy Project (MREP 1.0), the CoM facilitated a second renewable energy buyers group to help like-minded organisations come together to reduce emissions and secure increased long term electricity price certainty – two complementary goals that can be realised through renewable corporate power purchase agreements (PPAs).

The buyers group consists of seven participating organisations that committed a contract volume of 110 GWh per annum. The participants include:

• Cbus Property
• Citywide Asphalt
• Deakin University
• Fulton Hogan
• ISPT
• Mondelēz International
• RMIT University

Energetics was engaged in 2019 to advise on electricity contracting options. We also supported the end to end PPA transaction process from engaging the market, drafting RFP documentation, providing technical and financial assessments of the diverse range of product offers from retailers, and supporting negotiations. The work to drive negotiations was undertaken with Norton Rose Fulbright to secure a shortlist of preferred suppliers to reduce the buying group’s risk exposure.

“Energetics’ knowledge and professionalism have been invaluable to our purchasing group. Your combination of energy market expertise and commercial and technical capability helped the group make informed decisions and facilitate a joint purchasing agreement. Thank you all for your enormous efforts.” – Deputy Lord Mayor Arron Wood, City of Melbourne