Barangaroo Green Energy Purchase Plan: A Landmark Agreement for Sustainable Development

Overview

Barangaroo continues to set the benchmark for sustainable urban development in Australia. The Green Product Purchase Agreement (GPPA), a 25-year initiative formalised in December 2023, is a central part of this mission, aimed at offsetting the carbon emissions generated by Barangaroo’s precinct. This plan is crucial in helping the area maintain its carbon-neutral status while aligning with New South Wales' broader Net Zero Plan.

The GPPA Agreement

Signed between Infrastructure NSW and renewable energy developer CleanPeak Energy, the GPPA secures a long-term supply of green energy products that will significantly reduce Barangaroo's Scope 2 emissions (emissions from electricity consumption). This agreement is a pioneering move in NSW's green transition, featuring four new solar farms across regional NSW.

Key Strategies and Initiatives

• Commitment to Long-Term Carbon Neutrality: The GPPA ensures that Barangaroo remains a carbon-neutral precinct, which is crucial for both local and global sustainability efforts. The renewable energy sourced from these solar farms will help offset emissions for the next quarter-century, contributing to Barangaroo’s Climate Active certification, an internationally recognised carbon-neutral standard.

• Development of Solar Infrastructure: Under the GPPA, four solar farms—two in Hay and Moama—are under construction to supply the energy needed to meet Barangaroo’s goals. The first two solar farms are expected to be completed by mid-2025. These farms will supply low-carbon energy to the precinct and contribute to the regional economy through job creation.

• Use of Levies for Green Energy Procurement: The green energy is funded by levies collected from Barangaroo building owners, which ensures a shared commitment across stakeholders in the precinct. This model of cost-sharing not only supports ongoing infrastructure but also promotes a collaborative approach to sustainability.

• Fixed and Competitive Pricing: One of the key advantages of the GPPA is its fixed pricing mechanism for green energy products. Over the 25-year span, Barangaroo will benefit from stable and predictable energy costs, shielding the precinct from fluctuations in energy markets while prioritising environmental goals.

• Community Engagement and Benefits: The agreement also includes provisions for community engagement and benefits, with structured plans to enhance local involvement. A Community Benefits Plan and Community Engagement Plan have been incorporated into the framework, focusing on transparency and accountability.

Regulatory and Financial Framework

• Regulatory Flexibility: The GPPA includes provisions to adapt to changes in renewable energy schemes and regulations. Should there be updates to renewable energy legislation or new green product opportunities, the agreement is designed to accommodate such developments without compromising its goals.

• Force Majeure and Adjustment Mechanisms: The GPPA has robust mechanisms for dealing with disruptions, including force majeure events that might affect energy production. These provisions ensure that even in the event of delays or unforeseen issues, Barangaroo’s sustainability goals remain achievable.

• Certifications and Green Product Transfers: The green products generated under the GPPA include Large-Scale Generation Certificates (LGCs), ensuring compliance with Australia’s Renewable Energy Target. Furthermore, the GPPA outlines detailed procedures for invoicing, payments, and adjustments to ensure transparency and accountability.

Collaborative and Financial Impact

This agreement emphasises collaboration between government, private sectors, and community stakeholders to achieve long-term sustainability. The $48 million investment in solar energy infrastructure not only ensures Barangaroo's carbon neutrality but also contributes to regional economic growth by supporting clean energy jobs and the development of renewable energy projects.

Conclusion

The GPPA represents a major step forward in Australia’s clean energy transition, setting a standard for sustainable urban development. With a solid financial and regulatory foundation, as well as collaborative community efforts, Barangaroo is positioned to remain a global leader in climate-positive precincts for decades to come.