Snowy Hydro-owned Red Energy will provide off-site renewable energy to more than 40 Dexus buildings in New South Wales through a new deal signed today (Thursday).
The real estate group Dexus claims the seven-year deal is one of Australia’s first supply-linked renewable energy supply agreements (ESA).
Starting in 2020, the deal will cover 50 per cent of the energy load with the option to extend that to 100 per cent. The company expects to source more than 300 gigawatt hours of renewable energy to power the base building services of the 40 buildings.
The deal is also expected to reduce the retail energy rate by more than 10 per cent compared to existing contracted rates – a saving that is passed onto our customers, according to Dexus head of group sustainability and energy Paul Wall.
“This agreement allows us to hedge a portion of our power price, providing a buffer against energy market uncertainty,” he said.
“The deal has been struck at below current market rates and leverages the large-scale generation certificates subsidies, resulting in a fixed price for 50 per cent of our energy load over the next seven years.”
The energy will come from Snowy Hydro’s portfolio of contracted wind and solar projects that are being built across regional New South Wales and Victoria. This supply will be “firmed by its fleet of hydro-electric generation assets”.
“Red Energy’s ‘firmed’ renewable energy is backed by Snowy Hydro’s integrated renewables portfolio, which includes the recent addition of 888MW from offtake agreements with eight new wind and solar projects,” chief executive officer of Snowy Hydro Paul Broad said.
“This landmark ESA with Dexus represents one of the first direct off-takes for ‘firmed’ renewable electricity of this type. On-demand hydro from the mighty Snowy Scheme will underpin our contracted wind and solar generation, meaning Red Energy can supply Dexus with reliable renewable energy,” Mr Broad said.