Local Government PPA

The LG PPA is the largest ever emissions reduction project undertaken by local government in Australia.

The landmark initiative will enable 47 Victorian councils to switch to 100% renewable energy from mid 2021. The ‘buyers group’ aggregates over half of the entire sector’s electricity load – equivalent to powering 44,500 homes with renewable energy or taking 82,800 cars off the road each year.

Six EAGA members are participating in the project to secure renewable energy to power municipal offices, leisure centres, streetlights and community buildings. Councils participating in this project recognise the benefits of renewable energy for local economies and job creation, environmental purposes, and reducing costs.

The project was initiated and facilitated by the Victorian Greenhouse Alliances and is now being administered via Darebin City Council who will oversee procurement activities relating to the tender process. A business case was developed for the project which provides confidence that a PPA will help reduce costs, protect councils against energy market volatility, improve budget certainty, and assist in reducing greenhouse gas emissions.

The initiative is a culmination of a number of initiatives and capacity building programs delivered by the Victorian Greenhouse Alliances since 2015, including the establishment of a cross Alliance Electricity Contract working Group in 2017. Read more about this work program here.