Electricity Procurement
In the next twelve months, all Victorian councils must commit to their next round of electricity contracts. Councils have been buffered from recent price increases having locked in their rates for the past two years in a fixed rate, fixed term contract. Current market rates indicate that councils are in for significant ‘price shock’ if they continue to purchase energy using a business as usual approach. For many councils this will be an unbudgeted price shock, and could translate into overall bill increases of somewhere between 30-60%. For instance if a council currently spends $1 million on electricity, it could expect to spend $1.5 million from next year.
The silver lining however is that it makes the business cases for investment in behind the meter energy efficiency and onsite renewable energy generation ever more compelling. In addition, it encourages councils to think more laterally about the way in which they purchase electricity going forward.
The CVGA in partnership with the other Victorian Greenhouse Alliances have been undertaking a work program to assist councils navigate their options going forward. Click on the below hyperlinks for more information.
Discussion Paper (May 2017)
This discussion paper has been collaboratively developed by the Victorian Greenhouse Alliances to inform future approaches to electricity procurement in their member councils. It provides a summary of new and emerging opportunities for Victorian councils to collectively procure best value electricity whilst meeting multiple policy commitments and objectives, particularly with respect to emissions reduction.
Electricity contracts information forum (Oct 2017)
With support from Sustainability Victoria, the Victorian Greenhouse Alliances teamed-up to provide councils with independent information to critically assess future options for electricity contracts. The event also presented findings from the Large Scale Solar Feasibility Study – an initiative jointly funded by the Greenhouse Alliances. Access the key event documents and presentations below:
Current procurement options and determining preferences (PDF, 1262 KB)
Large Scale Solar Feasibility Study – FG Advisory (PDF, 2111 KB)
Who’s with who contract matrix (XLS, 62 KB)
FAQs event attendees (XLS, 27 KB)
Webinar (Oct 2017)
As a follow-up to the cross Alliance forum on council electricity contracts, EAGA partnered with Sustainability Victoria to deliver a one-hour webinar for councils unable to attend the forum in person. A live recording of the webinar is available below.
Survey of Victorian councils (Jan 2019)
Between October – December 2017, EAGA partnered with the Victorian Greenhouse Alliances to conduct a sector wide survey of Victorian councils. The intent of the survey was to:
Social Energy Procurement project
In January this year, CVGA received funding from Local Government Victoria to undertake a project examining the ways councils purchase and invest in electricity. This project was initiated and will be managed by the CVGA, with Swan Hill as lead council, 10 partner councils and 5 greenhouse alliances. The project will examine 3 different components: 1) analysis of risks and opportunities of Power Purchase Agreements (PPAs), 2) models for community and council partnerships with a focus on councils contracting power from local energy projects, and 3) business models for co-investment in renewable energy infrastructure.
The silver lining however is that it makes the business cases for investment in behind the meter energy efficiency and onsite renewable energy generation ever more compelling. In addition, it encourages councils to think more laterally about the way in which they purchase electricity going forward.
The CVGA in partnership with the other Victorian Greenhouse Alliances have been undertaking a work program to assist councils navigate their options going forward. Click on the below hyperlinks for more information.
Discussion Paper (May 2017)
This discussion paper has been collaboratively developed by the Victorian Greenhouse Alliances to inform future approaches to electricity procurement in their member councils. It provides a summary of new and emerging opportunities for Victorian councils to collectively procure best value electricity whilst meeting multiple policy commitments and objectives, particularly with respect to emissions reduction.
Electricity contracts information forum (Oct 2017)
With support from Sustainability Victoria, the Victorian Greenhouse Alliances teamed-up to provide councils with independent information to critically assess future options for electricity contracts. The event also presented findings from the Large Scale Solar Feasibility Study – an initiative jointly funded by the Greenhouse Alliances. Access the key event documents and presentations below:
Current procurement options and determining preferences (PDF, 1262 KB)
Large Scale Solar Feasibility Study – FG Advisory (PDF, 2111 KB)
Who’s with who contract matrix (XLS, 62 KB)
FAQs event attendees (XLS, 27 KB)
Webinar (Oct 2017)
As a follow-up to the cross Alliance forum on council electricity contracts, EAGA partnered with Sustainability Victoria to deliver a one-hour webinar for councils unable to attend the forum in person. A live recording of the webinar is available below.
Survey of Victorian councils (Jan 2019)
Between October – December 2017, EAGA partnered with the Victorian Greenhouse Alliances to conduct a sector wide survey of Victorian councils. The intent of the survey was to:
- quantify electricity consumption by contract type across all Victorian councils
- determine the extent to which Victorian councils have installed solar PV on their own facilities to inform future bulk buy initiatives
- collect information on the preferences of councils for developing new retail electricity procurement, investment and contracting models
Social Energy Procurement project
In January this year, CVGA received funding from Local Government Victoria to undertake a project examining the ways councils purchase and invest in electricity. This project was initiated and will be managed by the CVGA, with Swan Hill as lead council, 10 partner councils and 5 greenhouse alliances. The project will examine 3 different components: 1) analysis of risks and opportunities of Power Purchase Agreements (PPAs), 2) models for community and council partnerships with a focus on councils contracting power from local energy projects, and 3) business models for co-investment in renewable energy infrastructure.