Green Auctions: Simplifying and De-Risking Renewables Procurement

In an Australian first, businesses can now access renewables in a similar way to conventional electricity contracts via a renewable energy supply agreement.

Currently, renewable energy sourced voluntarily by businesses equates to only 1% of the Australian energy market. At the same time, approximately a third of Australia's total carbon emissions are linked to the electricity sector. Encouragingly, more businesses are setting science-based net zero targets every day, but there is plenty more to be done to decarbonise the Australian economy.

At Energy Action, we live this challenge every day. From a procurement perspective, we have considered the significant benefits of simplifying and de-risking the purchasing of renewable energy. This underpinned the recent launch of our Australian-first Green Auctions and development of an innovative new way to buy energy, a Renewable Energy Supply Agreement (RESA).

What is a RESA?

A RESA behaves in a similar way to a traditional medium-term energy contract. It provides firm price renewables supply and has a contract duration of between two and five years. It also meets most meets most net zero certifications and RE100 commitments and is backed by an identifiable renewable energy asset.

How does it differ from a standard energy supply agreement?

The specification differs from a standard electricity supply agreement. It requires the retailer to facilitate 100% renewable supply by surrendering the equivalent number of LGCs, allowing a business to claim renewable electricity supply. Otherwise, the terms and conditions of a RESA are similar to a standard electricity supply agreement.

How can I access it?

The RESA will be available via the Energy Action reverse auction platform, where multiple renewable energy retailers will competitively bid for a businesses' contract. This will enable commercial consumers to gain easier access to cost-effective and lower risk options for renewable supply.

If you are interested in participating in an upcoming auction, please register your interest here.

How does the RESA compare to a PPA?

The RESA provides an option to purchase renewables without the risks associated with Power Purchase Agreements (PPAs). The RESA has a shorter-term duration, and lower counterparty and pricing risks.

How do I find out more details?

To find out if a RESA is suitable for your business, please contact Energy Action on 1300 964 589 to discuss your requirements.