Mundaring is assessing a new renewable energy agreement. Picture: Cindy Cartojano

Power purchase agreement: What is it?

There seems to be a lack of detail about Mundaring’s three-year renewable energy agreement due to expire at the end of this month.
March 13, 2025
Cindy Cartojano

THE Shire of Mundaring is currently assessing a new renewable energy agreement facilitated by the WA Local Government Association (WALGA) as the current agreement is due to expire at the end of the month.

The agreement, also known as the power purchase agreement (PPA), was first adopted in March 2022, according to the shire’s 2024 emissions reduction strategy report.

Despite being in effect for the past three years and, according to WALGA, more than 50 local governments signing the agreement, there seems to be little known about it.

According to WALGA’s sustainability energy project beyond 2025 strategy, the PPA is an alternative option to mitigate expenditure on energy, which is “linked to existing or newly commissioned renewable energy infrastructure”.

When Echo News asked WALGA to clarify what the PPA involves, a WALGA spokesperson said, “A PPA is  acontractual agreement that will purchase energy that is directly generated by a renewable asset.

“The WALGA contract uses LGC’s (large-scale generation certificates) that are generated from wind farms that are surrendered and therefore used as carbon offsets.

“The purpose of the project is to provide significant cost savings and carbon emission reductions to participants.”

According to a 2023 video by Cities Power Partnership (CPP), the PPA involves locally sourcing renewable energy from the Albany, Collgar and Emu Downs wind farms.

CPP highlights reduced energy costs, price certainty and reduced emissions as the three benefits of the agreement.

A shire spokesperson addressed these benefits and said “In 2022-21 costs totalled $212,954 and in 2024-25 costs totalled $192,881.

“Rates were similar and set over the three years.

“For the seven eligible sites, emissions were reduced 100 per cent by utilising three wind farm sites.”

The seven eligible sites, according to the shire spokesperson include shire admin, shire operations centre, Lake Leschenaultia, Bilgoman Aquatic Centre, Mundaring Arena, Boya Community Centre and Stanhope Gardens.

The spokesperson said the shire gets its renewable energy from wind farms via Synergy and their contracted arrangements.

According to a Synergy map, the shire falls under the South-West Interconnected System (SWIS).

The energy retailer’s website stated “Western Power owns and operates the transmission and distribution infrastructure within the SWIS.

“Synergy is a generator and retailer (or seller) of electricity in the SWIS.”

In the CPP video, Shire of Mundaring President Paige McNeil said, “Collaboration with other local governments is really important.

“Especially when we’re trying to tackle climate challenges.”

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