Iberdrola strikes renewable energy supply deal with 13 NSW councils

The Australian arm of Spanish energy company Iberdrola has struck a renewable energy supply agreement to provide 13 regional New South Wales councils with more than 390 GWh of electricity through to the end of 2030.

November 18, 2024 David Carroll

Image: Iberdrola Australia

Iberdrola Australia has secured a multi-year power purchase agreement (PPA) with a collective of 13 regional New South Wales (NSW) councils with a portion of the renewable energy to be sourced from the 190 MW Avonlie Solar Farm near Narrandera in the state’s Riverina region.

Under the terms of the Powering Tomorrow: Regional Councils NSW PPA, Iberdrola will supply more than 390 GWh of electricity to 163 large council sites and streetlighting across the 13 participating council areas. The agreement is effective from 1 January 2025 and extends through until the end of 2030.

Iberdrola will cover the renewable electricity supply under the transaction from three of its NSW-based renewable energy projects including the 190 MW Avonlie Solar Farm and its 140 MW Capital and 113 MW Bodangora wind farms.

The Hunter Joint Organisation (JO), which coordinated the PPA in collaboration with Mid North Coast Joint Organisation, said the agreement shows what councils can achieve by working together.

“By collaborating, the participating councils increased their collective buying power to secure a competitive deal and reduced the procurement costs by sharing resources and fees,” it said.

MidCoast Council Mayor Claire Pontin said the deal also locks in renewable electricity at a competitive price, providing long-term budget certainty and shielding councils from energy market volatility.

“The cost of providing energy for council facilities and services is significant,” she said. “We are pleased to have secured renewable energy at a stable price through to 2030.”

Pontin said opting for 100% renewable energy to power the council’s large sites and streetlighting would reduce carbon emissions by an estimated 58,271 tonnes over the six-year agreement, aligning council with local, state and national net-zero targets.

Other participating councils include Maitland, Muswellbrook, Upper Hunter, Bellingen, Leeton, Narrandera, Dungog, Port Stephens, Singleton, Murray River and Berrigan.

Some councils have opted for 100% renewable energy under the PPA, while others have signed up for different volumes, with the option to increase this over time.

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