How the Deal Works

Energy prices in Australia have increased significantly in 2017/18 due to continuing investor uncertainty which has meant that new energy contracts entered into in 2017 can be as high as 15-24c/kWh just for energy (excluding network and other charges). Because of this, large energy consumers have started buying energy directly from energy producers through a PPA. PPAs have until now only been available to large energy consumers.

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What is a PPA?

PPA stands for Power Price Agreement. Whereas typically energy consumers enter into agreements with energy retailers who then enter into agreements with energy generators, a PPA is where an energy consumer enters into an agreement to purchase energy directly from an energy generator. Until now PPA’s have only been done by large corporate energy consumers who have enough bargaining power to effectively negotiate prices with energy generators. Organisations that have done this include the ones shown below.

How does this PPA work?

The AHA has been working with Clean Energy Strategies (CES) to deliver