EY Australia renewable energy procurement contract
Ernst & Young Australia has advised Nestlé on their new Power Purchasing Agreement (PPA) with CWP Renewables’ Crudine Ridge and Sapphire wind farms in New South Wales, Australia.
The renewable energy procurement contract will lead to a 73,000 tonne reduction of carbon emissions each year and means Nestlé is now powered by 100% renewable energy in Australia.
Procuring a better world
EY Australia was the lead commercial and financial adviser on the transaction for Nestlé. EY was founded in London, 1989 and has a revenue of £40bn. The company seeks to ‘build a better working world’, by creating long-term value for clients, using data, technology and diverse EY teams across the world.
Nestlé is also moving towards a more sustainable future, by purchasing more renewable energy projects.
The company hopes to halve its emissions by 2030 and reach net zero by 2050.
Direct procurement of renewable energy
“Sustainability and decarbonisation concerns have been at the top of the agenda for corporates and investors in the Australian market for a number of years, and especially in the lead up to COP26”, said Igor Sadimenko EY Region Power & Utilities Leader, Oceania.
“The decarbonisation of the electricity grid is being driven by the demands of corporate Australia to power their operations with 100% renewable energy between now and 2030, and this shift is reflected in the spot and forward pricing. The direct procurement of renewable energy through a PPA remains one of the most efficient methods for large corporates to minimise their exposure to emissions generated through carbon intensive electricity usage.”
The market for PPAs has evolved over the years as the supply of suitable projects has slowed, due to a combination of lower wholesale prices and challenging grid conditions.
“Corporates that have been able to navigate these challenges have used PPAs to provide price certainty over a set period of time for the acquisition of electricity and LGCs and unlock opportunities to support regional development and achieve enhanced customer engagement”, concludes Sadimenko.