RES Australia has signed a long term corporate power purchase agreement with Telstra, Australia's largest telecommunications and media company. This will support the development of a recently consented 70 megawatt (MW) solar farm on a single 160ha site near Emerald in Queensland, Australia.
The project will start construction later this year and is expected to be operational in the second half of 2018, delivering enough renewable generation to power up to 35,000 homes.
The RES Australia team has been able to draw upon RES’ global market-leading expertise in securing offtake agreements with global leaders such as General Motors, Google and Microsoft.
Under this new agreement Telstra will benefit from long term energy security to mitigate the risk of energy price volatility in its position as one of the country’s largest energy users.
Telstra’s involvement was critical in underwriting the project, worth around $100 million, as an important addition to Australia’s supply of renewable energy and extending RES’s portfolio of solar, wind and battery storage assets in the country.
Marco Perona, RES Australia’s CEO, said "Corporate PPAs are particularly well suited to the Australian energy market dynamics so I would like to commend Telstra for taking the corporate initiative to lead the market. We look forward to delivering this project in partnership with them."
"I am delighted we have been able to apply our global experience in long term power purchase agreements to tailor a deal around Telstra’s requirements. We are looking forward to working with the local community in Emerald to realise the jobs and economic opportunities this project will create in regional Queensland," said Mr Rebbeck, RES Australia’s Chief Operating Officer.
Central Highlands Regional Council Mayor Kerry Hayes also welcomed the announcement. "I’m delighted that RES Australia as chosen Emerald for its investment," he said. "This region is perfect for renewable energy projects and we’re looking forward to working with the company to facilitate local contracts as the site develops."
Ben Burge, Executive Director of Telstra Energy, said the agreement was an important step in enabling Telstra to more actively manage energy consumption and costs, whilst also contributing to reducing emissions and stimulating investment in regional Australia.
The Australian market for corporate PPAs is poised for significant growth due to rapidly accelerating electricity and gas prices. RES is well placed to capitalise on the opportunity with a significant pipeline of solar projects across key States, alongside a high quality wind farm development portfolio, a market leading energy storage offer and renewable generation Asset Management services for investors.
Doug Smith, Head of Solar, RES Australia
Rebecca Meek, Development Project Manager (Emerald), RES Australia
About RES Group
The world's largest independent renewable energy company with a 12 GW portfolio and the expertise to develop, engineer, construct, finance, and operate projects around the globe. RES is active in a range of energy technologies including onshore and offshore wind, solar, energy storage and transmission. RES has been developing renewable energy in Australia since 2004 with over 350 MW (megawatts) of renewable solar and wind energy installed or currently under construction across Australia.
Telstra is a leading telecommunications and technology company. We offer a full range of services and compete in all telecommunications markets in Australia, operating the largest mobile and Wi-Fi networks. Globally, we provide end-to-end solutions including managed network services, global connectivity, cloud, voice, colocation, conferencing and satellite solutions. We have licenses in Asia, Europe and the United States and offer access to more than 2,000 points of presence across the globe. For more information visit www.telstra.com
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