Origin Energy has set a new benchmark for renewable energy off-take deals in Australia after committing to a long-term power purchase agreement of below $60/MWh for the 530 MW Stockyard Hill Wind Farm in Victoria. Under the terms of the deal, Origin will sell Stockyard Hill Wind Farm, Australia’s largest wind development, to Goldwind, the Chinese wind turbine manufacturer, for $110 million. At the same time, it has agreed to buy all of the power generated by it, and the associated Renewable Energy Certificates, for less than $60/MWh, from the commencement of operations in 2019 to 2030.
It is understood that the strike price for the wind farm output is “well below” $60/MWh, and closer to $50/MWh. As such, it sets a new benchmark for renewable energy prices in Australia, comparable to that which could be bought directly from a brown coal-fired generator.
Frank Calabria, CEO of Origin Energy, said that this indicated just how quickly Australia’s renewable energy transition is unfolding. He said: “Through our deal with Goldwind, Origin has been able to add a substantial amount of new renewable energy to our portfolio at a market-leading PPA price. As Stockyard Hill is in Victoria, this will help to cover a large portion of the load of the recently retired Hazelwood Power Station. As Origin looks to a future where renewables will dominate Australia’s energy supply, we are in a very strong position to build one of Australia’s lowest cost renewables portfolios.