ALDI has signed a ten-year Power Purchase Agreement (PPA) with a leading Australian renewable energy operator for a percentage of the output from a Victorian wind farm.
The supermarket giant has executed the PPA with Tilt Renewables (TLT) for approximately six per cent of the output from the 335MW Dundonnell Wind Farm project.
The long‐term offtake agreement is TLT’s first “corporate PPA” – a PPA with a corporate entity which is the end user of electricity, rather than an electricity retailer – representing the company’s first step into that growing market segment.
In 2018, the Dundonnell Wind Farm project (DDWF) secured a Support Agreement from the Victorian State Government as part of the Victorian Renewable Energy Auction Scheme, and a long‐term PPA with Snowy Hydro, prior to the commencement of construction in late 2018.
DDWF achieved its first generation on 11 March 2020 and full commercial operation is targeted for Q3 2020, with the ALDI offtake agreement to commence at the beginning of 2021.
The PPA with ALDI now takes the total long‐term contracting of output from the DDWF project to approximately 93 per cent.
Deion Campbell, TLT Chief Executive, said the ten-year PPA was the result of a competitive process, and its success in that process clearly demonstrated the quality of the Dundonnell project.
“We are excited to have established our first corporate PPA with a partner as iconic as ALDI. The majority of the production volume from the Dundonnell Wind Farm is contracted with strong counterparties, and this PPA provides further revenue certainty from the project,” Mr Campbell said.
“The company continues to be well positioned to continue delivering shareholder value via large investment opportunities from our high‐quality development pipeline, which is considered the best in the region.”