ERM’s Australian Energy Markets team tracks the size, number and type of power purchase agreements (PPAs) year-on-year in Australia’s main energy system (National Electricity Market | NEM*). Our tracker shows the role businesses are playing in Australia’s transition to clean energy.
Australia is a nation built on abundant, low-cost fossil fuels. It also possesses vast wind and solar resources offering enormous opportunities in today’s decarbonising world.
Since 2017 demand for renewable PPAs from electricity users has become a feature of Australia’s contracting landscape, directly impacting the viability of a growing number of renewable projects.
ERM’s proprietary corporate renewable PPA tracker has become the leading reference source for corporates, developers, lawyers, financiers, policy makers and industry commentators seeking to understand energy users’ role in the clean energy transition across Australia’s NEM. Transactions include both virtual / financial and electricity retailer intermediated PPAs but exclude renewable electricity certificate-only transactions.
Growing commitment amongst business and government organisations in Australia to addressing climate change.
Reduced reliability of the aging coal generation fleet, coupled with increased renewable penetration, contributes to higher electricity price volatility.
Grid-supplied electricity is often the most significant decarbonization lever and the logical starting point on a net zero or climate positive journey.
Delay risks and lack of alignment in the build-out of new transmission lines and renewable projects with coal retirements contributes to higher contract risk premiums.
Assists in meeting scope 2 (grid supplied electricity) emissions reduction goals
Mitigates risk exposure to extreme and volatile electricity prices
Provides a tailored renewable energy solution that better aligns with your business’ specific energy requirements, relative to a standard electricity supply agreement
Demonstrates leadership by supporting investment in environmentally and socially responsible energy infrastructure
~50%
the number of renewable corporate PPAs announced in 2024 (in Australia’s NEM) that ERM advised on
~25%
the corporate renewable PPA volume (GWh pa) contracted between 2017 and 2024 (in Australia’s NEM) that ERM advised clients on**
* = The NEM covers the east coast of Australia, which represents more than 80% of the national consumption (excludes Western Australia and Northern Territory)
** = Includes PPA agreements that have been executed but not yet publicly announced