ACT starts to bank its cheapest wind power yet in next stage to kick out fossil fuels

The ACT government has confirmed it is now sourcing electricity from the newest wind farm in its growing renewable energy portfolio, as it moves to the next stage of kicking out fossil fuels out of the capital territory.

As RenewEconomy reported last week, the 109MW Berrybank 2 wind farm, located in Victoria’s western plains, has been formally opened, and will deliver the cheapest wind energy yet to the ACT government – at a fixed price of $54.58/MWh over the next 14 years.

The ACT already contracts enough renewable electricity to account for the electricity consumed within its territory each year, and is looking to add more as it seeks to electrify transport, buildings and industry as part of its 2045 net zero target.

“Berrybank 2 is one of 13 large scale renewable energy generators that are spread across the country, providing the ACT with zero emissions energy at low prices now and into the future,” energy minister Shane Rattenbury said in a statement.

“As we electrify Canberra and phase out fossil gas, and as Canberra’s population grows, we will need additional electricity supply. The Berrybank wind farm will boost our renewable electricity supply and help power an all-electric Canberra.”

The contracts with its wind and solar farms has enabled the ACT to successfully shield local households and businesses from the steep price hikes facing the rest of the country. It has also legislated a ban on new gas connections and will steadily wind back gas use over the next two decades.

“The price stability that the ACT is now seeing is the result of the good decisions we made over a decade ago to implement a 100 per cent renewable electricity target, further proving that climate action is both achievable and affordable,” Rattenbury said.

“These policy decisions have largely protected the ACT community from the extreme price volatility in wholesale electricity prices that other jurisdictions are facing.

The Bderrybank wind farm will provide the cheapest electricity contracted to date by the ACT, but the Goyder South wind farm in South Australia will deliver even cheaper power when it starts operations next year.

Goyder South, which will also supply power to BHP’s massive Olympic Dam mine under a landmark 24/7 renewable contract, will deliver electricity to the ACT at a fixed price of $44.97/MWh.

If wholesale prices average above that level, the profits are returned to the ACT and its electricity consumers, effectively ensuring they are protected from sustained price hikes on the wholesale electricity market.

The owners of Berrybank (Global Power Generation), and Goyder South (Neoen) also committed to big battery installations as part of their contract with the ACT.

GPG hs completed the 10MW/20MWh Queenbeyan battery, while Neoen is nearly finished its much larger 100MW/200MWh Capital battery. Both batteries will support rooftop solar output and provide a further hedge against prices in the morning and evening peaks.