Facilitating end user deployment of off‐site renewable generation: final project report

Energy Markets Renewable energy Power resources Electricity demand Australia
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DOI: 10.25916/5ce8c701b23d3 1.08 MB

Internationally, there is a trend towards end users procuring electricity from offsite Renewable Energy (RE) facilities located at physical premises distinct from the point of end use. In 2015, end user Power Purchase Agreements (PPAs) in the United States underpinned more new wind capacity than renewable energy portfolio standards (RPS). First mover companies such as Google, Amazon, Facebook, and Microsoft are now being joined by manufacturing and retail businesses like Ikea, Volkswagen, General Motors, and Dow Chemical.

This report reviews the potential for a new Australian market to emerge with respect to offsite RE procurement by corporate and institutional entities. It considers what this new market may look like, who may participate, the preferences and views of potential participants, and provides some initial guidance as to how participants may interact with such a market. It intended to provide practical and actionable insights supporting end user decision making in procuring specific offsite renewable energy (RE); provide information that can reduce transaction costs, contribute to market development; and characterise the current status of Australian offsite RE procurement including the values, drivers, barriers, and preferences of potential market participants.

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