IPPToday #270: Sydney Airport to be powered by wind energy
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Sydney Airport has announced the signing of a tripartite Memorandum of Understanding (MOU) with Origin Energy and Grassroots Renewable Energy that will see 75% of its current electricity load supplied by the 135 MW Crudine Ridge wind farm located in central-west New South Wales.
Currently in construction, the wind farm is expected to be fully operational by late 2019. It will have 37 GE wind turbines, capable of generating 400,000 MWh annually. It is owned by Grassroots Renewable Energy, a partnership of Partners Group and CWP Renewables established in May this year.
Origin Energy will provide baseload firming to meet the airport’s energy needs at times of low wind generation. Origin has committed to 1,200 MW of new renewable supply since March 2016 and can provide energy from any of these wind or solar farms or assist in procuring and firming energy outside this portfolio.
The company is also wrapping the arrangement, opening the possibility for further collaboration on energy services between all three partners in the future.
The long-term agreement will reduce Sydney Airport’s energy costs, while supporting its transition to renewable energy and achievement of its target 50% reduction in carbon intensity by 2025.
As the busiest airport in Australia, this agreement is trailblazing for both the national aviation and renewable energy sectors, proving that renewable power can meet even the most demanding energy needs.
It is also groundbreaking in its structure as a corporate power purchase agreement (PPA), as the agreement contracts the wind power and bundles it with firming energy in an all-in-one package.