EY Australia advises Nestlé on 100% renewable energy procurement contract with NSW Wind Farm

Ernst & Young, Australia (“EY Australia”) is proud to have advised Nestlé on their new corporate Power Purchasing Agreement (“PPA”) with CWP Renewables’ Crudine Ridge and Sapphire wind farms in NSW.

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    The switch to 100% renewable electricity in Australia will mean Nestlé will avoid around 73,000 tonnes of carbon emissions each year.

    EY Australia was the lead commercial and financial adviser on the transaction for Nestlé.

    “Sustainability and decarbonisation concerns have been at the top of the agenda for corporates and investors in the Australian market for a number of years, and especially in the lead up to COP26,” said Igor Sadimenko EY Region Power & Utilities Leader, Oceania.

    “The decarbonisation of the electricity grid is being driven by the demands of corporate Australia to power their operations with 100% renewable energy between now and 2030, and this shift is reflected in the spot and forward pricing.

    “The direct procurement of renewable energy through a PPA remains one of the most efficient methods for large corporates to minimise their exposure to emissions generated through carbon intensive electricity usage.

    “The market for PPAs has evolved over the years and become more challenging as the supply of suitable projects has slowed due to a combination of lower wholesale prices and challenging grid conditions.

    “Corporates that have been able to navigate these challenges have used PPAs to provide price certainty over a set period of time for the acquisition of electricity and LGCs and unlock opportunities to support regional development and achieve enhanced customer engagement,” said Mr Sadimenko.