MORE clarity is needed about the quantity of carbon dioxide emissions by the Shire of Mundaring’s buildings which are part of its renewable energy agreement, as well as what carbon offsets apply.

According to the CSIRO, emissions are measured in tonnes of carbon dioxide.

Mundaring shire chief executive Jason Whiteaker said the Energy Sales Agreement (ESA) was signed on April 1 and would expire on March 31, 2028.

The ESA is similar to the shire’s previous renewable energy contract with the Western Australian Local Government Association (WALGA), titled Purchase Power Agreement (PPA).

In Power purchase agreement: What is it? (Echo News, March 14) a WALGA spokesperson said, a PPA was a contractual agreement that would purchase energy that was 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 WALGA spokesperson said.

A video by Cities Power Partnership identified reduced energy costs, price certainty and reduced emissions as the three benefits of the agreement.

On April 8 Mr Whiteaker highlighted the economic and sustainable benefits of the agreement.

“Total savings over the three-year agreement has been estimated at $141,000 based on existing usage as compared to the open market rates.

“Shire of Mundaring participation in the WALGA Purchase Power Agreement, continues our journey to a more sustainable and environmentally responsible future for our community.”

According to WALGA’s 2023 statement on the Sustainable Energy Project Beyond 2025 Strategy, the selection of a PPA option may entail a greater degree of risk, commensurate with the prospect of reward.

“These risks include the likelihood of a longer-term lock in period which could be adversely impacted by market changes and emerging technologies,” the strategy said.

“Load profile management of consumption will also be critical to optimising the benefits of PPA model.

“WALGA may opt to mitigate this risk by layering managed service activity for billing and demand management into a future contract term, funded through project cost savings while still maintaining market preferential pricing through the project offer.”

The retailer to the project is obligated to deliver the capacity and reporting of the supply of renewable energy and the use of carbon offsets, a WALGA spokesperson said.

Mr Whiteaker confirmed Synergy is the retailer to the project.

When asked about annual reports relating to the PPA in the three years it was operational from 2022 to 2025, Synergy directed Echo News to WALGA.

Echo News asked WALGA about the costs involved, requested a list of councils that have signed the new agreement, and inquired whether there is sufficient renewable energy to support additional councils joining.

WALGA replied with a link to its announcement about phase two of the Sustainable Energy Supply Project.

However, a WALGA spokesperson said: “The (sustainable energy) project is not a Power Purchase Agreement.”

Echo News asked Energy Minister Amber-Jade Sanderson to explain what the PPA is, and the costs associated with it.

Ms Sanderson’s office directed the questions to Synergy for a response, but Echo News is yet to hear from the energy retailer.