Coles has signed a 10-year agreement with renewable power company Metka EGN. Coles will purchase more than 70 per cent of energy generated by three solar power plants to be built by Mekta.
The plants are earmarked for Wagga Wagga, Corowa and Junee and the energy will equal around 10 per cent of Coles' national elecricity usage.
The photovoltaic solar plants will supply more than 220 gigawatt hours of electricity to the grid. It is saving roughly 180,000 tonnes of greenhouse gas emissions or emissions from 83,000 cars a year.
Coles Group CEO Steven Cain said the company was thrilled with the agreement. "Coles can make a significant contribution to the growth of renewable energy supply in Australia."
“We have already made changes throughout our business to use energy more efficiently, which has enabled us to reduce our greenhouse gas emissions by 4 per cent over the past financial year and more than 30 per cent since 2009, despite growing our store network.
“Over the past two financial years alone we have invested more than $40 million in energy efficiency measures including upgrading all store lighting to LED by the end of 2019 and the installation of solar panels on 30 stores.”
Coles Chief Property and Export Officer Thinus Keeve said Coles was the first major Australian retailer to commit to buying renewable energy through a Power Purchase Agreement.
“Agreements like this are crucial to growing renewable generation capacity in Australia because they give the developers the certainty they need to invest,” he said.
As well as supporting large-scale generation projects, Coles is working with property partners to increase on-site generation of renewable power at stores and distribution centres.
“We plan to install solar panels on another 38 stores this financial year and we will be working with our landlords and property developers to identify further locations suitable for on-site solar power generation,” Mr Keeve said.
The projects announced today were developed by Australian renewable energy developer Terrain Solar, with the support of advisory firm PwC, as part of a portfolio of renewable generation plants. Metka EGN acquired the portfolio earlier this year and will build, operate and own the plants.
“Terrain Solar is incredibly proud of this landmark agreement that will underpin the construction of three new renewable energy plants in regional New South Wales” said Terrain chairman David Griffin.
Construction is scheduled to begin in September and the plants are expected to commence supplying power to the grid in July 2020.
