New analysis from business energy retailer Flow Power reveals that businesses signed onto its corporate renewable power purchase agreement (PPA) product secured total savings of up to $14m since the start of 2018.
The analysis highlights the significant opportunity for businesses to drive down energy expenditure, while benefiting from the long-term nature of these contracts, which serve as a secure platform to achieve sustainability goals.
The popularity of PPAs has risen as businesses have turned to these agreements as a hedge against potentially volatile future energy prices.
Unlike most corporate renewable PPAs, which serve as financial tools and require additional energy contracts, businesses that enter into these agreements with Flow Power match their load to generation from one or more renewable plants, benefit from wholesale spot pricing and rates tracked against their usage.
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ANCA CEO Chris Hegarty comments, “Advanced Manufacturing in Australia is a global race with product cost being a key factor. Flow Power is more transparent on costs, came out as far cheaper than the quotes we sourced from traditional energy providers and is sourced from 100 per cent renewable – partnering with them was simply the best choice for ANCA.”
Of its 445MW wind and solar offering, Flow Power has allocated 204MW to Australian businesses. This is testament to the growing awareness and appetite for these agreements in the Australian market, and Flow Power’s success in meeting this demand.
The remaining 241MW could power more than 200 commercial and industrial businesses for the next 10 years.
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CEO of Flow Power Matthew van der Linden said, “Last year, we set a fairly ambitious target of having 10 offtake agreements, and wind and solar in every state. We’re excited to say that we’ve met this goal.”
“The savings that businesses can achieve with corporate renewable PPAs is significant. And this is just the beginning. We’re looking forward to seeing these deals gain traction as the market continues to embrace them.
“It’s critical that we support Australia’s growing pipeline of renewable projects, and PPAs are the way to do this.”