Woolworths signs first wind farm supply deal in first step towards 100 pct renewables

lincoln gap wind farm

Supermarket giant Woolworths has finally entered the market for renewable energy, signing a 10-year agreement to purchase electricity from the Bango Wind Farm being built near Yass in New South Wales.

Woolworths has secured a deal to source around 30 per cent of its electricity consumption from the 82.8MW wind farm being developed by CWP Renewables. The project could ultimately grow to as large as 244MW across all its stages.

Woolworths will buy around 195,00MWh of power from the wind farm, representing about a quarter of its total output, which is expected to be fully operational before the end of the year.

Woolworths director of format, Rob McCartney, said the project was the company’s first steps towards transitioning to 100 per cent renewable electricity by 2025.

“We know the steps we take to become a more sustainable business today will help create a better tomorrow for generations to come,” McCartney said.

“Going beyond net carbon neutral, we’ve committed to take more carbon out of the atmosphere than we produce by 2050 and our first renewable power purchase is a key milestone in that pursuit.”

The deal will secure enough renewable energy supplies to power the equivalent of around 108 Woolworths supermarkets – or around 30 per cent of Woolworth’s total energy needs.

With the need to operate lighting, heating, cooling, refrigeration and freezer systems, supermarkets can have surprisingly high energy consumption needs. Woolworths estimates that it alone is responsible for one per cent of Australia’s total electricity use.

“Supermarkets are particularly energy intensive to run and we want to use our scale for good by supporting the transition to renewable electricity,” McCartney added.

“To spur the growth of the industry, we’re prioritising renewable energy from new build projects like the Bango wind farm, which also demonstrates the potential of green energy to deliver investment and jobs to regional areas.”

CWP Renewables CEO Jason Willoughby said that the company would have the capacity to develop both stages of the Bango Wind Farm project, delivering a total of 244MW of new wind generation capacity.

“Woolworths is not only buying renewable energy from Bango Wind Farm, they are also supporting regional NSW and reducing greenhouse gases emission,” Willoughby said.

“With Woolworths’ decision, CWP Renewables is developing both stages of the approved Bango wind farm and will be generating renewable energy for Woolworths from the start of next year.”

NSW energy minister Matt Kean welcomed the announcement, which would help underpin further investment in the state’s clean energy infrastructure.

“This is great news and further proof that the NSW electricity infrastructure roadmap is providing the certainty to businesses and energy market investors to make financial decisions that will help power our state into the future,” Kean said.

“I am fully supportive of all energy market investment in NSW, but this partnership and agreement is particularly significant because it is prioritising the building of new infrastructure, providing for local jobs and investment and helping us grow our renewable energy base.”

Law firm Ashurst advised Woolworths on the power purchase agreement, which welcomed the opportunity to assist a company the size of the supermarket giant in entering the renewable energy market.

“Woolworths is major Australian retailer and this PPA is a significant development in achieving its goal of being 100% renewable energy powered by 2025.  Agreements like this with major corporates will continue driving the energy transition,” Ashurst partner Dan Brown said.

Woolworths has faced pressure from environmental campaigners to commit to purchasing its electricity consumption from renewable energy sources, and the new deal sees Woolworths join Coles and Aldi in buying at least part of their power from renewable sources.

In April, Coles signed two power purchase agreements to purchase renewable energy certificates from Engie’s Willogoleche and Canunda wind farms, as well as Neoen’s portfolio of wind and solar projects.

Aldi has said that it was on track to secure 100 per cent of its electricity consumption from renewable sources by the end of 2021, following power purchase agreements signed with Tilt Renewables and Ratch Australia.

Woolworths pledged to purchase all of its power from renewables in November last year, signing up to the RE100 program.

Michael Mazengarb is a Sydney-based reporter with RenewEconomy, writing on climate change, clean energy, electric vehicles and politics. Before joining RenewEconomy, Michael worked in climate and energy policy for more than a decade.

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