AGL Energy has entered into a power purchase agreement (PPA) with Tilt Renewables to offtake electricity generation from the Palmer Wind Farm in South Australia.
The 15-year agreement provides AGL with an offtake of 45 per cent of the expected generation from Palmer, that share being approximately 123MW of up to 288MW of the project’s nameplate capacity.
AGL Chief Commercial Officer, David Moretto, said renewable energy PPAs add important portfolio diversification and support the decarbonisation of the company’s electricity supply.
“AGL operates a diverse portfolio of assets to help meet the needs of our customers. This renewable energy PPA will add important diversification within AGL’s energy portfolio, support the decarbonisation of the company’s electricity supply, and can help AGL support its customers to decarbonise by increasing the renewable energy linked supply within our portfolio,” he said.
The Palmer Wind Farm, located approximately 70km east of Adelaide, is being developed by Tilt Renewables and is targeting first commercial operations in December 2028. The 15-year agreement is expected to run from that point forward.
AGL enters PPAs with renewable generators as a buyer and in doing so, purchases energy and renewable energy certificates for a fixed price. PPAs play an important role in the energy transition as they can help to underwrite new renewable generation.
