Login
Bakers completes 2 PPAs for ALDI
Baker McKenzie has advised ALDI on securing two simultaneous corporate power purchasing agreements.
Tony Zhang
Firm: Baker McKenzie (ALDI).
Deal: Baker Mckenzie has advised ALDI on securing two corporate PPAs.
An agreement with RATCH Australia provides for 19.4 per cent of the electricity and green products (such as the certificates earned under federal regulations by the use of renewable energy) generated by the 227-megawatt Collector Wind Farm in NSW.
A second agreement, with Tilt Renewables, provides for 6 per cent of the electricity and green products generated by the 336-megawatt Dundonnell Wind Farm in Victoria.
Area: Environmental advisory, PPA.
Key players: The Baker McKenzie team across both PPAs was led by global co-head of renewables, Paul Curnow, who was assisted by partner Aylin Cunsolo, senior associate Lev Gantly, and ALDI relationship partner Frank Castiglia.
Deal significance: The Australian arm of German discount supermarket chain ALDI stated they pledged to source 100 per cent of its electricity from renewable resources by the end of 2021.
By entering into these PPAs, ALDI will offset a significant portion of the emissions associated with its electricity consumption at its NSW and Victorian stores. The entry into corporate PPAs is a core aspect of ALDI’s global sustainability strategy and these are the first corporate PPAs that ALDI has entered into in Australia.
“Corporates continue to look to corporate PPAs for economic and sustainable advantages such as long-term price predictability and the ability to hedge against future price increases, along with meeting their renewable energy targets,” lead partner Mr Curnow said.
When asked about the future of PPAs and how they are evolving, Mr Curnow added that new deal structures gaining popularity include aggregate buyer groups and consortia by which companies and government entities aggregate their power demand and jointly negotiate PPAs, “while smaller-scale PPA projects are increasingly being grouped within a fund or other investment structure in order to create a portfolio attractive to lenders.”
