New South Wales will save $130 million on its public transport network power bill after signing on to a $1.9 billion renewable energy contract over seven years.
The money saved will be directly invested back into frontline public transport services across the state.
This will provide a timely investment boost as surging petrol costs drive more people from their cars on to trains, metro, buses and light rail.
The switch over to renewable power will achieve significant emissions reductions, allowing Transport to avoid the equivalent of over 800,000 tonnes of CO2 each year compared to conventional power
This is the first time all public transport operations will be powered under a single supply deal.
Previously, agencies like Sydney Metro and Sydney Trains negotiated their own electricity supply contracts, but the consolidation of modes has given the Minns Labor Government the buying power to drive a better deal for NSW taxpayers.
Transport operations use almost as much power as all other NSW public sector agencies combined.
The successful bidder, Snowy Energy, the retail brand of Snowy Hydro, was awarded the contract following a robust two-year review and competitive tender process.
The renewable electricity that will be supplied under this new contract moves Transport one step closer to achieving its emissions reduction targets of reducing operational emissions by 65 per cent by 2030 and reaching net zero by 2035.
Across Australia, the transport sector is on track to become the largest source of emissions by 2030.
With the weekly fare caps, public transport is one of the most affordable and environmentally friendly ways to get around.
Adult fares are capped at $50 weekly, Concessions and Child/Youth at $25, and $2.50 daily cap for Senior/Pensioner travellers - meaning once you hit those caps, your trips are free.
Minister for Transport John Graham said:
"Cost of living pressures are real for household and government budgets. This contract reduces costs and moves us towards better environmental outcomes while we deliver a reliable public transport network.
"Transport uses almost as much electricity as all other government agencies in NSW combined. It's important we use our buying power responsibly and get the best possible deal for taxpayers, which is what we have achieved.
"We are planning for a sustainable future as our network continues to grow, with new Sydney Trains fleets, more metro services, thousands of emissions-free buses, and Light Rail across the city and Parramatta.
Transport for NSW Secretary Josh Murray said:
"This is the first time all public transport operations will be powered by the same electricity deal.
"Previously, agencies like Sydney Trains and Sydney Metro have been buying their electricity separately - this move consolidates those operations and costs.
"We've also been able to deliver significant reductions in energy demand through initiatives like rooftop solar at the new Sydney Trains' Mortdale train maintenance facility and the Clyde engineering hub.
"At Mortdale alone, 2,000 solar panels have been installed, generating 1,317 Megawatt hours of clean renewable electricity and avoiding around 870 tonnes of carbon emissions per annum, while reducing the amount of electricity that needs to be bought from the grid."
Snowy Hydro Chief Executive Officer Dennis Barnes said:
"The new contract with Transport for NSW indicates the demand for renewable energy solutions is growing at pace.
"There has been growing interest from businesses and government agencies across the country that are looking for innovative ways to decarbonise their operations.
"Transport for NSW is a large energy user and they are leading the way in their efforts to reduce emissions. We were able to provide a tailored approach that meets their unique needs and secures long-term renewable matched energy from sources such as the Uungula Wind Farm right here in NSW."
