Westpac plugs into Wagga solar project to power 100pc renewable energy pledge

Westpac has vowed to source 100pc of its energy needs via renewables by 2025.

01/05/2018: Westpac Bank generic, Hollie Adams/The Australian

Westpac has committed to source 100 per cent of its energy needs through renewables by 2025.

As one of the first Australian companies to commit to transitioning to renewable energy, Westpac will become a member of RE100, a global initiative led by The Climate Group in partnership with CDP.

The first phase of the transition to renewables will be through a 10-year power purchase agreement with Bomen Solar Farm, to be constructed in Wagga Wagga by Spark Infrastructure, which is expected to be operational in 2020.

“We see our move towards the use of renewable energy in our operations as being key to delivering on our existing climate change and sustainability commitments,” said Westpac chief operating officer Gary Thursby.

“When it comes to renewable energy, the advancement of technology and reduction in cost has presented a great opportunity to make this transition in a cost effective way.”

Westpac will purchase just over a quarter of the solar farm’s output, which will deliver a 45 per cent transition to renewables by 2021 for Westpac globally.

The bank said it would commit $1 million to support the community over the term of the contract, for STEM scholarships as well as providing support for youth facilities, local biodiversity and vegetation regeneration programs.

“We’re proud to be supporting the local Wagga Wagga community — the site construction and ongoing management of the Bomen Solar Farm will provide local employment and supplier opportunities,” Mr Thursby said.

“We also look forward to seeing what we can achieve through the associated one million dollar community fund over the next ten years.”

Spark Infrastructure announced this morning that it had acquired a 100 per cent interest in the Bomen Solar Farm from Renew Estate.

Construction is scheduled to commence this year, with a total cost at completion expected to be about $188m.

“Bomen has highly contracted cash flows and attractive risk-adjusted returns which will exceed current regulatory returns,” said Spark Infrastructure chief executive Rick Francis.

“While modest, it is a logical and prudent first step in diversifying our exposure to regulated assets and accesses growth in adjacent essential service infrastructure in line with our investment strategy.”

Renewable electricity retailer Flow Power has also committed to a range of contract tenures of five, seven and 10 years.

About $3 billion in investments in new renewable energy projects since 2016 in Australia has been driven by corporate power purchase agreements, Westpac said.