Capturing the size, number and type of power purchase agreements (PPAs) year-on-year in Australia’s main energy system (National Electricity Market | NEM*), ERM’s tracker shows the role business is 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 have 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.
Meet scope 2 (grid supplied electricity) emissions reduction goals
Mitigate risk exposure to extreme and volatile electricity price during the energy transition
Tailored renewable energy solution that meets specific energy requirements
Demonstrate leadership by supporting investment in environmentally and socially responsiblity 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)
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