AGL will sell energy from the national electricity market and RECs from its existing and future renewable assets. The extra demand for renewable energy created by the agreement underpins additional investment by AGL in renewable generation.
Under the agreement, AGL will initially focus on ensuring that 100% of the power needed for MWC’s Sugarloaf pipeline project will be offset through the purchase of energy from renewable sources.
Michael Fraser, managing director of AGL, said: “AGL is Australia’s leading integrated renewable energy company. We can ensure the renewable energy requirements of the Melbourne Water Corporation are met because of our financial strength, our portfolio of renewable energy projects and our technical expertise.
“The contract with the Melbourne Water Corporation, combined with the renewable energy supply contracts for the Victorian and South Australian desalination projects, provides AGL with a fixed revenue stream for its renewable energy and increases the value of our development portfolio.”
