Lower energy costs bring budget relief for Kempsey Shire Council who have cut their energy bills in half thanks to a long-term energy agreement.
In 2021, Council signed up to a seven-year Power Purchasing Agreement (PPA). Facilitated by Local Government Procurement, the PPA was entered into with 11 other councils and was designed to achieve three key goals: help councils transition to 100% renewable energy and net zero emissions, increase purchasing power through collaboration, and secure stable electricity prices in a volatile market.
Council's decision to lock in competitive energy prices when the contract began in 2023 proved to be excellent timing. Before the electricity market experienced a drastic price surge in late 2023—from $55 per MWh to $240 per MWh—Council had secured long-term, affordable rates, protecting the budget bottom line from rapidly rising costs.
Jessica Marsh, Sustainability Project Officer, is proud to announce that through the PPA, from January 2025, Council will source 100% renewable energy for all large sites and streetlighting.
"This transition will save around $400,000 per year for the seven-year period of the power purchasing agreement, compared to if we were paying the full price of electricity. Including the other sustainability measures implemented over the past few years, such as upgrading office and street lighting to LEDs, and installing solar panels, annual savings amount to just under $700,000," Ms Marsh explained.
"In addition, the PPA will result in an estimated reduction of 2,844 tonnes of CO2 emissions in 2025 alone, with a total saving of 13,980 tonnes over the contract's duration."
The PPA, established in partnership with Iberdrola, sources energy from a combination of wind and solar farms, including Collector Wind Farm, Capital Wind Farm, Avonlie Solar Farm, and Bodangora Wind Farm.
Council's commitment to sustainability extends beyond the PPA. Council has already installed solar panels on key buildings, including the Civic Centre, Slim Dusty Centre, Depot, Waste Management Centre, and Bushfire Control Centre.
Additionally, Council has invested in streetlighting upgrades, electric vehicle infrastructure, and energy-efficient heat pump hot water systems. This year, Kempsey will also welcome its first electric fleet vehicle.
Michael Jackson, Acting General Manager, applauded the initiative, pleased to achieve the twin benefits of financial and environmental sustainability.
"By taking decisive action early, we have not only secured massive financial savings for our community but also made a bold commitment to a sustainable future," said Mr Jackson.
"Kempsey Shire Council is leading the way in transitioning to clean energy, and we are proud to be reducing our carbon footprint while delivering significant cost savings."
With smart investments in renewable energy and energy-efficient technology, Kempsey Shire Council continues to demonstrate leadership in environmental responsibility while ensuring long-term financial benefits for the community.
