Woolworths has signed an eight-year deal with SmartestEnergy Australia to supply all its energy needs in the ACT and New South Wales. It means the retailer will achieve its 100 per cent renewables by 2025 the state and territory.
The 8-year agreement started in January and will expand in 2024 to supply more than 450 sites including Woolworths supermarkets, Big W stores and Primary Connect distribution centres.
The electricity retail agreement is a framework that enables Woolworths Group to procure electricity and renewable electricity certificates through SmartestEnergy, incorporating renewable generation projects.
Woolworths Group general manager of Green Energy Transition, Michael Shelley, said: “We’ve committed to run our entire operations on renewable electricity from 2025, and this agreement marks an important milestone in securing the supply to make it possible in NSW and ACT.
“We’re excited to partner with Smartest to build a portfolio of renewable electricity sources from local renewable sites in these states, on our path to decarbonise and become net carbon positive by 2050.”
The agreement will allow Woolworths Group to develop a portfolio of power purchase agreements (PPAs) through SmartestEnergy across different generation technologies and locations with renewable generators within NSW and ACT.
The first step in building this portfolio of PPAs is the incorporation of Woolworths Group’s existing PPA with Tattarang’s Squadron Energy (formerly CWP Renewables) for Bango Wind Farm. A new PPA with Octopus Investment will also join the portfolio during 2023, drawing electricity from the Darlington Point Solar Farm in the Riverina region of New South Wales, supplying enough electricity to power 110,000 households annually.
The agreement provides Woolworths Group with the flexibility to continuously innovate throughout the long-term agreement to respond to market changes and new opportunities, on the path to achieving its renewable targets.
SmartestEnergy CEO Robert Owens said, “This is a landmark deal for SmartestEnergy in Australia and aligns with our strategic ambitions in bringing together businesses with net zero goals and local independent renewable developers.
“We admire the ambitions and leadership Woolworths Group has demonstrated. It has a clear vision for a sustainable future, what it means for their business and the community. Australia is one of the most exciting energy markets in the world. As a global renewable energy retailer and PPA aggregator, we hope to continue developing solutions that support the sustainable transition to a green future.”
