Hunter Water taps into sustainability with innovative electricity purchase agreement

Hunter Water is pleased to announce that after following a tender process, it is entering into a Retail Renewable Power Purchase Agreement (PPA) with AGL, marking significant progress towards its commitment to sustainability.

Hunter Water Managing Director, Darren Cleary, said the agreement is an important step in delivering long term cost certainty in a time where there is a lot of uncertainty in the market.

“We look forward to partnering with AGL in this agreement to supply our larger sites with electricity. The project is expected to lower our operational carbon footprint by around 70 per cent.

“Sustainability is central to our purpose at Hunter Water and this PPA aligns with our goals and demonstrates our commitment to working towards a more sustainable future that benefits our customers, our community, and the environment.”

Under the terms of the agreement, which will formally commence on 1 January 2025, AGL will sell all electricity used by Hunter Water’s largest sites and surrender renewable energy certificates sourced from the Silverton Wind Farm near Broken Hill in NSW in a quantity equivalent to a proportion of that electricity consumption.

This commitment from Hunter Water will ensure renewable energy certificates (in the form of large-scale generation certificates under the Commonwealth Large-scale Renewable Energy Target scheme) are surrendered in a quantity equivalent to a proportion of the electricity used by Hunter Water’s largest sites, which will gradually increase to 100 per cent in 2030.

The electricity used will power critical infrastructure and operations across Hunter Water’s area of operations. The agreement, which lasts until 30 June 2031, is set to provide Hunter Water with a stable and cost-effective energy supply, while supporting Hunter Water’s commitment to a low-carbon economy.

AGL General Manager Commercial and Industrial Customers, Ryan Warburton, said renewable-linked PPAs like this can assist commercial and industrial customers in their energy transition journey.

“We are proud to partner with Hunter Water, operating near AGL’s generation assets in the Hunter Valley, and assist them on their energy transition journey. There is a clear synergy between AGL and Hunter Water as we are both dedicated to providing essential services to the local Hunter community, as well as being committed to a lower carbon future.”

This PPA is part of Hunter Water’s broader sustainability program, which includes water conservation initiatives, waste reduction programs, and environmental management. Alongside this, Hunter Water continues to roll out its onsite renewable energy generation program, with 6.5 megawatts of renewable energy capacity to be installed across treatment plants and pump stations by early 2025.

To learn more, head to hunterwater.com.au/sustainability