Microsoft and AGL Energy have signed a new renewable energy certificate agreement, spanning across 15 years, to provide Microsoft with renewable energy certificates for Rye Park wind farm projects in New South Wales.
This agreement follows AGL’s Power Purchase Agreement with Tilt Renewables to offtake electricity and environmental products generated from Rye Park Wind Farm in New South Wales.
The 15-year agreement with Tilt Renewables provides AGL with an offtake of 45 per cent of the output of Rye Park, with the share being equivalent to approximately 513GWh per year.
Registered owners of renewable energy certificates such as large-scale generation certificates can choose to on-sell them or surrender them to the Clean Energy Regulator to acquit their mandatory liability under renewable energy legislation or voluntarily reduce or offset their existing carbon emissions.
AGL Chief Operating Officer, Markus Brokhof, said that the signing of the deal between the company and Microsoft marks another example of how AGL is participating in the transition to renewable energy.
“Supply agreements for renewable energy certificates can help to increase the viability of new renewable energy projects by providing the projects with an additional revenue stream.”
Microsoft ANZ Managing Director, Steven Worrall, said “We really appreciate the strong collaboration with AGL to increase our procurement of renewable energy certificates in Australia. Beyond this contract we will continue to look for new opportunities to support the transition of the electricity grid in Australia to renewable energy sources and reduce the emissions associated with our operations.”
As part of AGL’s Climate Transition Action Plan, AGL aims to add ~12GW of generation and firming by the end of 2035 – comprising of 6.3 GW of renewables and 5.9GW of firming.