Baker McKenzie Advises 13 NSW Councils on Iberdrola PPA.
Baker McKenzie has successfully facilitated a significant Power Purchase Agreement (PPA) between Iberdrola and 13 participating councils in New South Wales (NSW). The agreement, which is set to begin on January 1, 2025, and run until the end of 2030, will provide over 390 GWh of electricity to 163 major council sites and street lighting across the participating regions.
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The PPA was established under the initiative called The Powering Tomorrow: Regional Councils NSW PPA, organized by the Hunter Joint Organisation. By joining forces, the councils were able to pool their resources and enhance their collective purchasing power, allowing them to secure favorable terms and reduce procurement costs. This collaboration has not only streamlined the process but also created an opportunity to capitalize on the benefits of shared resources and fees.
Aylin Cunsolo, the lead partner at Baker McKenzie, highlighted the environmental and financial advantages of the PPA, stating, “By opting for renewable energy to power large sites and street lighting, the councils will avoid an estimated 185,303 tonnes of carbon dioxide equivalent (t CO2-e) emissions over the duration of the agreement, whilst also achieving cost savings and budget certainty.”
The majority of the 13 councils have opted for 100% renewable energy under the terms of the PPA. This move not only supports their sustainability goals but will also result in a collective saving of approximately AUD 5.28 million by the end of 2030, compared to their current electricity costs for 2024. Additionally, the PPA offers price certainty, shielding the councils from the volatility of energy prices over the next six years.
This deal aligns with the broader sustainability initiatives in the region, with participating councils making strides toward decarbonization and energy security. The partnership also reinforces the role of renewable energy in reducing carbon emissions, with the councils contributing to a greener, more sustainable future.
The collaboration with Iberdrola is seen as an important step for the councils involved, as well as a critical part of their long-term commitment to sustainability. Francesco Semino, Chief Sustainability Officer of Acciaierie Venete Spa, echoed these sentiments, emphasizing that the PPA is an essential part of the decarbonization efforts. "This partnership with Iberdrola is consistent with our commitment to sustainability, and should be seen as part of a decarbonisation process that aims to reduce specific CO2 emissions by more than 50% by 2030."
Lorenzo Costantini, Sales Director of Iberdrola Italia, expressed pride in supporting the sustainability goals of Acciaierie Venete Spa and in advancing renewable energy use in Italy. He noted: "We are proud to be able to contribute to the sustainability goals of Acciaierie Venete, a point of reference in the Italian and European steel sector. This PPA represents a further step in our strategy aimed at promoting the use of energy from renewable sources among industrial partners, thus supporting the energy security of our country."
Through this agreement, the councils and their partners have made a significant step toward a more sustainable and energy-efficient future, ensuring that the PPA not only delivers economic benefits but also contributes to the global effort to combat climate change.
Iberdrola has emerged as a leading European player in the rapidly expanding Power Purchase Agreement (PPA) market, with nearly 1,000 MW signed in 2023, as reported by Pexapark's European PPA Market Outlook 2024. In Italy, the company is committed to advancing industrial decarbonization and renewable energy solutions, playing a key role in the country’s ecological transition and energy security.
With a portfolio of nearly 150 ongoing projects in Italy, Iberdrola is set to reach 400 MW of installed capacity by 2025, significantly contributing to the sustainability and decarbonization goals within the Italian industrial sector.
Iberdrola is a global energy leader, headquartered in Spain, specializing in renewable energy, electricity distribution, and sustainability solutions. Founded in 1901, the company has become one of the world's largest utilities, with a strong focus on clean energy. Iberdrola operates in over 40 countries, with a portfolio that includes wind, solar, and hydropower projects. It is committed to achieving carbon neutrality by 2050 and plays a key role in the global transition to renewable energy and energy security.
Baker McKenzie’s lead partner, Aylin Cunsolo, was supported by a team that included Odette Adams and William Eefting.
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