Energy retailer Flow Power has announced that it will introduce solar to its corporate PPA as part of its ambitious plans to grow its renewable portfolio. The agreement will see Flow Power contract 50MW of the output of the 200MW Kiamal Solar Farm, which is Victoria’s largest solar project.
According to Flow Power, the deal is the first major contract with a renewable generator since Canadian pension trust OPTrust took an ownership stake in the company in February. It is also Flow Power’s first solar offering and will expand the company’s portfolio for its corporate customers, which include ANCA Machines, Olam Orchards, Yarra Valley Water and most recently, Burra Foods.
The 200MW Kiamal Solar Farm is the first Australian investment from Total Eren, a leading French developer and independent power producer of renewable energy and has the potential to be sized up to 350MW.
Flow Power managing director Matthew van der Linden said: “The market has proven that there is an appetite for PPAs, and this is no longer only coming from large corporates. Due to the scale of the project and the term of our agreement, we have been able to negotiate an agreement that will deliver very competitive rates for our clients.”
“It will certainly set a benchmark for an accessible, cost-effective renewable PPA, with rates that are well below what we currently see in the market.”
“It also opens the door to a new type of deal for customers, who will now be able to take up PPAs with multiple sources, such as wind and solar, to manage their risk and get even better price outcomes,” said van der Linden.
Van der Linden suggests they are certainly seeing more and more businesses recognising the value in signing onto PPAs, either through retailers like Flow Power or through their own agreements such as Mars’s recently announced PPA with Kiamal.
“We’ll see continued growth in this sector as more renewable generation comes online and businesses are able to reap the benefits of their PPAs, “said van der Linden.
“These deals are one of the best ways for Australian businesses to short circuit the traditional contract market. The certainty of price as well as the significant price reduction is very appealing for businesses who have been struggling with rising prices. Our model gives the businesses much more flexibility than a traditional PPA and is driving a lot of attention.”