Sydney-based energy retailer AGL Energy has announced a landmark 15-year Power Purchase Agreement (PPA) with developer Tilt Renewables for the offtake of electricity from the forthcoming Waddi Wind Farm in Western Australia (WA).
Under the agreement, AGL will offtake 100 per cent of the projected 105 megawatts (MW) generation capacity from the Waddi Wind Farm, currently under development in the Shire of Dandaragan, around 150 kilometres north of Perth. Supply under the PPA is expected to begin in the second half of 2028, with full PPA obligations running for the subsequent 15 years.
Portfolio diversification and market growth
David Moretto, Chief Commercial Officer at AGL, described the PPA as “important portfolio diversification” that will support the group’s electricity supply decarbonisation ambitions.
For AGL’s WA arm, AGL Perth Energy, the agreement represents its first long-term wind PPA, according to General Manager Giles Redmile. He said this provides a platform to expand AGL’s offering to SMEs and large commercial/industrial customers in WA, delivering renewable-linked energy products.
Strategic alignment with WA’s grid expansion
The Waddi Wind Farm is aligned with the WA Government’s Clean Energy Link North transmission expansion initiative, as outlined in the recently published South West Interconnected System (SWIS) Transmission Plan. Its location and timing are viewed as strategically well placed to leverage this emerging transmission infrastructure.
For AGL, the move reinforces its commitment to entering and scaling in the WA market, where AGL Perth Energy has operated since 1999, supplying electricity and gas to commercial and industrial customers in the Wholesale Electricity Market across south-west WA, and supporting sustainable energy solutions, such as solar, batteries and remote-power installations.
Why this deal matters
Renewable PPAs – where a corporate buyer contracts with a renewable generator for energy and renewable energy certificates at a fixed price – play a key role in underwriting new build renewables. By securing this long-term offtake, AGL effectively provides revenue certainty to the Waddi project, thereby de-risking development and helping accelerate new capacity into the WA system.
For the WA clean-energy sector, the deal signals strong corporate demand for large-scale wind power, and underscores how the transmission build-out (via Clean Energy Link North) is unlocking opportunity zones north of Perth.
Looking ahead
With construction still to begin in earnest, the Waddi Wind Farm is expected to deliver into the market from 2028. For AGL, the PPA forms part of a broader decarbonisation pathway, and for WA it adds another large-scale wind project in a region increasingly attractive for renewables development.
As the energy sector continues to evolve, deals such as this will be watched closely by developers, investors and corporates seeking to align their portfolios with Australia’s net-zero transition.
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