In 2020, we inked our first renewable power purchase agreement with 2 solar farms and a wind farm in regional NSW.
A power purchase agreement (PPA) is a long-term contract to buy electricity directly from a renewable energy generator at an agreed price, rather than buying on the open market.
The 10-year deal has proven more beneficial than we anticipated. From 2020 to 2026, we’ve saved around $8 million in electricity costs compared to a traditional electricity contract.
Why we saved so much
Opting for a long-term deal – 10 years – helped us save substantially in a volatile electricity market. And the price certainty helps us manage our cash flow better.
We also save money through load matching – timing our purchases to match supply. We buy most of our electricity from our wind farm partner, since we use the most power at night, when wind generation is highest.
Pricing depends on 2 things: the spot price (the price of electricity on the open market at that moment) and a ceiling price (the maximum we'll pay, even if the spot price goes higher). Here's how it works:
- Where our electricity use matches the amount outlined in our PPA, we pay the agreed price.
- If our electricity use is greater than the amount outlined in our PPA, we pay the spot price – but only up to a ceiling price.
- When our electricity use is less than the amount outlined in our PPA, the surplus power is sold and we earn revenue based on the spot price in the electricity market.
Where we buy electricity from
Our electricity retailer sources renewable electricity from 3 different generators, all based in regional NSW: Sapphire Wind Farm near Glen Innes, Bomen Solar Farm near Wagga Wagga and Shoalhaven Community Solar Farm. Even though we’re not physically getting renewable electricity from the generators, the electricity market works like we are.
Some organisations setting up PPAs choose to deal directly with renewable electricity generators instead of a broker or retailer. But we chose to work with an electricity retailer because of its expertise in the field and it looks after many of the technical (and riskier) details on our behalf.
What uses the most electricity in our area
Street lights. Even though we’ve switched to LEDs and considerably reduced energy use, street lighting is still our single biggest category user.
Our future plans
We’re exploring ways to use less energy through new technologies, monitoring and equipment upgrades. We’re also looking at:
- more solar arrays and battery storage
- demand response opportunities – when we could choose not to use electricity during times of high demand in exchange for lower rates or some other form of reward
- electrification for our buildings, pools and fleet vehicles. This includes replacing things such as gas stoves and hot water units with more efficient electric alternatives like induction cooktops and electric heat pumps.
Further reading
Published 8 September 2026, updated 9 September 2026
