Australian electricity generation company Snowy Hydro has signed a significant renewable Power Purchase Agreement (PPA) with Portuguese clean power company TagEnergy.
Under the terms of the PPA, Snowy Hydro will obtain 40% of the energy and green certificates (LGCs) generated by the 756MW first stage of the Golden Plains wind farm.
The Golden Plains wind farm project is built on a 16,723ha site located near Rokewood, a small rural town in the Shire of Golden Plains, around 60km North-West of Geelong, Victoria.
The first stage of the project is owned by TagEnergy (85%) and Ingka Group (15%).
Its construction featuring 122 turbines was officially commenced in April this year. It is anticipated to commence producing renewable energy in the first quarter of 2025.
The second stage of the project is wholly owned by Australian wind farm developer WestWind Energy and is expected to commence construction in early 2024.
It is the first PPA for the Golden Plains Wind Farm since the first stage of the 1,300MW project achieved financial close in November last year, said TagEnergy.
TagEnergy CEO Franck Woitiez said: “Achieving financial close of Golden Plains Wind Farm East without the need for PPAs proved the effectiveness of its innovative investment approach.
“Now, this landmark PPA with Snowy Hydro proves our strategy to progressively contract the energy production during construction and operation. It also reflects the confidence major industry players like Snowy Hydro have in our large-scale renewables project expertise.
“We are proud to enter this agreement with Snowy Hydro as we both work to ensure energy security and accelerate the transition to renewable energy as part of a rapidly growing industry.”
Snowy Hydro is a fully integrated energy company that owns and operates over 5,500MWh of generation capacity through the Snowy Mountains Hydro-electric Scheme.
The company also owns and operates gas and diesel assets across New South Wales, Victoria and South Australia, as peaking generation assets.
With the PPA, Snowy Hydro is enabled to secure a significant portion of its energy and LGC needs with a quality project, currently in advanced stage development.
Furthermore, the wind farm is expected to eliminate an average of 770,000 tonnes of CO2 annually, totalling more than 23 million tonnes of CO2 over the project’s 30-year lifetime.
Snowy Hydro CEO Dennis Barnes said: “Our partnership with TagEnergy is a significant step in supporting the decarbonisation of the National Electricity Market and further enabling Australia’s transition to renewables.”
Snowy Hydro chief commercial officer Gordon Wymer said: “TagEnergy has succeeded in developing an investment structure that provided optimal outcomes for all stakeholders.
“This has enabled Snowy to continue to expand its ability to provide clean, green, cost-effective renewable energy to our customers, and paves the way for further cooperation with TagEnergy on other developments.”
