The adoption of renewable energy is no longer just an environmental imperative. It will help businesses to meet financial goals now and overcome market volatility ahead. With wholesale electricity and LGC prices more than doubling between 2015 and 2018, Australian companies have been left struggling with inflated energy bills and budgets.
Confronting this energy issue head-on, BlueScope Steel signed one of Australia’s largest corporate renewable energy Power Purchase Agreements (PPA) with ESCO Pacific, renewable developer and owner of Finley Solar Farm.
The landmark 7-year Power Purchase Agreement (PPA), will see BlueScope offtake 66% of the 133MW of energy generated from ESCO Pacific’s Finley Solar Farm. Schneider Electric Energy & Sustainability Services (ESS) worked closely with BlueScope Steel to identify a longer term renewable PPA as strategy to reduce cost in short term and decrease volatility over longer term.
“BlueScope’s approach to energy has always been about balancing the ‘Trilemma’, whereby we have access to affordable and reliable energy whilst reducing emissions where we can – which is why we support the intent of the National Energy Guarantee (NEG). The renewable PPA will help keep downward pressure on our energy costs, and will support the gradual transition to renewable energy.”
~ John Nowlan, BlueScope Steel, Chief Executive
By investing in solar energy, BlueScope is not only actively managing its energy costs, but also accelerating the decarbonization of the electricity. The PPA will help to reduce greenhouse gas emissions by around 300,000 tons of CO2e each year. This is comparable to taking 90,000 cars off the road and is enough to power 60,000 homes!
Schneider Electric ESS has been long committed to helping businesses benefit from adopting low-cost renewable energy sources through PPAs and other projects.
To further this commitment, earlier this year we launched a renewable PPA practice locally – to help businesses access the PPA opportunity in Australia. In parallel, we also expanded our global New Energy Opportunities (NEO) Network™ to connect Australian companies with resources to efficiently navigate the process of evaluating PPAs, and other renewables and cleantech options.
To date, companies have executed more than 20 gigawatts (GW) of renewable projects worldwide, and Australia is the latest market to see the advantages of long term PPAs. It’s exciting to see BlueScope Steel join a global cadre of businesses benefiting both economically and environmentally from renewable energy sources – and we look forward to supporting many more follow in their footsteps.
To find out if a renewable PPA can help mitigate your company’s exposure to energy volatility, get in touch with one of our energy experts today.