As of 1 January 2025, nbn begun receiving renewable electricity through a six-year Power Purchase Agreement (PPA) with AGL.
Under the agreement, nbn is purchasing the equivalent of around 90GWh per year of renewable energy to be supplied to the grid and the associated renewable energy certificates generated by Macarthur Wind Farm, which is located 16km east of Macarthur, between Hamilton and Warrnambool in south-western Victoria.
It consists of 140 wind turbines with a capacity of 420MW. On average over the last ten years, the wind farm generated more than 910,000MWh of renewable energy annually – enough to power approximately 171,000 average Australian households each year.
With this PPA now in operation, nbn’s commitment to 100 per cent renewable electricity purchases from December 2025 has taken a significant step forward.
nbn’s renewable electricity purchase commitment also includes a solar farm at West Wyalong in the Riverina area of New South Wales, which was constructed following nbn’s first PPA – a ten-year agreement where the company has contracted to take approximately 90GWh per annum, or around 62 per cent of the expected power generated by the solar farm.
In November 2023, nbn signed its third PPA – another ten-year agreement that is enabling the construction of a new solar farm at Munna Creek, near Gympie, in south-east Queensland.
Under the third PPA, nbn has contracted to take approximately 59GWh per year, or more than 20 per cent of the expected power generated by the 467ha solar farm.
The Munna Creek solar farm is anticipated to be operational in the second half of 2025 and will include approximately 255,000 solar panels. Electricity generated from this solar farm is expected to be enough to power the equivalent of 41,000 Australian homes.
nbn’s target of 100 per cent renewable electricity purchases from December 2025 is underpinned by membership of the RE100, a global renewable electricity initiative comprising more than 400 of the world’s largest businesses.
NBN Co said it was the first Australian telecommunications company and first Australian Government Business Enterprise to join RE100.
The company has also set near-term science-based emissions reduction targets, which have been validated by the Science Based Targets initiative (SBTi)3, and are:
- Reducing absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 95 per cent by FY30 from a FY21 base year.
- Reducing Scope 3 use of products GHG emissions by 60 per cent per new device sold by FY30 from a FY21 base year.
- Have science-based targets for 80 per cent of suppliers by spend covering purchased goods and services, capital goods and downstream transportation and distribution by FY27.
NBN Co is committed to setting long-term emissions reduction targets and achieving net-zero emissions by 2050 (or sooner). The company expects to submit its long-term emissions reduction targets to the SBTi for validation shortly.
NBN Co Executive General Manager, Safety, Wellbeing and Sustainability, Stephen Smith, said, “The nbn network is a significant consumer of electricity and the commencement of the PPA for renewable electricity from the Macarthur Wind Farm is an important milestone for us in meeting our target of 100 per cent renewable electricity purchases from December 2025.
“Expanding the use of renewable energy sources, investing in energy efficiency including deployment of fibre and exploring innovative solutions will help us drive down our emissions and operating costs.
“We have a responsibility to operate sustainably, enabling long-term social, economic and environmental value for customers and for the nation.
“In doing so, we remain committed to operating a climate-resilient resource-efficient network and business, aligned with the latest climate science, which protects the natural environment.”
Featured image: AGL
