SmartestEnergy and Woolworths ink 100% renewable electricity agreement

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The agreement will enable a transition to 100% renewable supply in 2025, securing the supply needed for Woolworths Group to achieve its 2025 renewable electricity commitment in the two states.

The eight-year agreement started in January this year and will expand in 2024 to supply more than 450 sites, including Woolworths supermarkets, Big W stores and Primary Connect distribution centres. The electricity retail agreement is in the form of an innovative framework that enables Woolworths Group to procure electricity and renewable electricity certificates through SmartestEnergy, incorporating renewable generation projects.

The agreement will allow Woolworths Group to develop a portfolio of power purchase agreements (PPAs) through SmartestEnergy across different generation technologies and locations with renewable generators within NSW and ACT.

The first step in building this portfolio of PPAs is the incorporation of Woolworths Group’s existing PPA with Tattarang’s Squadron Energy (formerly CWP Renewables) for Bango Wind Farm. A new PPA with Octopus Investment will also join the portfolio during 2023, drawing electricity from the Darlington Point Solar Farm in the NSW Riverina, supplying enough electricity to power 110,000 households annually.

The agreement provides Woolworths Group with the flexibility to continuously innovate throughout the long-term agreement to respond to market changes and new opportunities, on the path to achieving its renewable targets.

“This is a landmark deal for SmartestEnergy in Australia and aligns with our strategic ambitions in bringing together businesses with net zero goals and local independent renewable developers,” said Robert Owens, Chief Executive Officer for SmartestEnergy Australia.

“We admire the ambitions and leadership Woolworths Group has demonstrated. It has a clear vision for a sustainable future, what it means for their business and the community. Australia is one of the most exciting energy markets in the world. As a global renewable energy retailer and PPA aggregator, we hope to continue developing solutions that support the sustainable transition to a green future.”

Woolworths Group General Manager of Green Energy Transition, Michael Shelley stated: “We’ve committed to run our entire operations on renewable electricity from 2025, and this agreement marks an important milestone in securing the supply to make it possible in NSW and ACT. We’re excited to partner with Smartest to build a portfolio of renewable electricity sources from local renewable sites in these states, on our path to decarbonise and become net carbon positive by 2050. This partnership brings our Group purpose to life – working together for a better tomorrow.”