|
Connecting energy buyers
and renewable energy projects. |
|
|
|
Energy buyers
We are an independent energy procurement specialist for Australia’s commercial, industrial and government energy buyers. We support our client’s sustainability and financial goals for renewable energy procurement including power purchase agreements, firming and project investment through our market expertise, data and guidance.
Energy providers, generators and investors
We provide a wide range of energy market services to project developers and generators, electricity retailers and investors. We provide project investment advisory and work with industry to develop firming products for clean energy hedging, such as our solar swap and super peak contracts.
Our ‘Hub’ marketplace
Our marketplace platform is where energy buyers, providers and generators can meet, follow the energy market and transact. It is the intersection of energy futures contracts and AEMO market data. The first of its kind in Australia and backed by ARENA, our platform is directly facilitating Australia’s energy transition. You can become a part of it. |
SO FAR, WE HAVE CONTRACTED APPROX.
2350
GWh OF RENEWABLE ENERGY
Welcome to the Hub
The energy market is big and crowded. There are energy buyers, sellers, brokers, retailers and firming providers. Everyone’s looking for something slightly different. We offer a range of services, depending on your business.
FAQ Section
Why Renewable Energy
Hub?
There’s really nothing else
like us in Australia. Big energy consultancies
don’t usually have wholesale transaction
experience, and traditional retail brokers just shop
around for the cheapest price. We sit somewhere in
the middle. Imagine the strategic thinking of a
consultancy with the hard-trading nous of a
wholesale broker. Then add ten years of renewable
energy experience.
How do PPAs
work?
Power Purchase Agreements (PPAs)
are contracts between energy providers and energy
buyers. There are three types of PPA. Generally
they’re designed for long-term deals (usually
10 to 15 years), but each one works slightly
differently in practice. We can help work out which
PPA is right for your business, or tailor something
to fit your needs.
Virtual PPA : This is a direct financial agreement with a renewable energy project. Think of it like a risk management pricing tool, structured around specific periods of energy generation.
Sleeved PPA : Sleeved PPAs are agreements to purchase an energy project’s output, packaged up by a third party, usually an energy retailer. The retailer provides a fixed price contract that covers (or ‘sleeves’) periods when the renewable project isn’t generating power. They’re a useful workaround solution.
Behind the Meter : Behind the meter is exactly what it sounds like – an agreement to purchase a project’s output directly, physically connected at the buyer’s location. If the buyer needs extra energy, they can get it through the grid (via a standard retail contract).
Virtual PPA : This is a direct financial agreement with a renewable energy project. Think of it like a risk management pricing tool, structured around specific periods of energy generation.
Sleeved PPA : Sleeved PPAs are agreements to purchase an energy project’s output, packaged up by a third party, usually an energy retailer. The retailer provides a fixed price contract that covers (or ‘sleeves’) periods when the renewable project isn’t generating power. They’re a useful workaround solution.
Behind the Meter : Behind the meter is exactly what it sounds like – an agreement to purchase a project’s output directly, physically connected at the buyer’s location. If the buyer needs extra energy, they can get it through the grid (via a standard retail contract).
Why choose a PPA over a
standard retail energy
contract?
A corporate PPA with energy
wholesalers can potentially lower the cost of
electricity and renewable energy certificates (or
‘LGCs’, in industry-speak). By buying
direct from a wholesale generator you’re
essentially cutting out the middle
man.
But money isn’t the only benefit. You also get peace of mind. PPAs are useful because they give you a fixed price for the duration of the contract – sometimes for over ten years. That helps protect you against market fluctuations.
Corporate PPAs can also help you hit your climate goals. You generate less carbon emissions than the standard grid mix, you save money, and you can promote your business as part of Australia’s sustainable energy future.
In short, PPAs are more predictable. They give you access to low-cost renewables in ways standard retail contracts can’t. It’s generally a win for both parties.
But money isn’t the only benefit. You also get peace of mind. PPAs are useful because they give you a fixed price for the duration of the contract – sometimes for over ten years. That helps protect you against market fluctuations.
Corporate PPAs can also help you hit your climate goals. You generate less carbon emissions than the standard grid mix, you save money, and you can promote your business as part of Australia’s sustainable energy future.
In short, PPAs are more predictable. They give you access to low-cost renewables in ways standard retail contracts can’t. It’s generally a win for both parties.
What if energy prices
increase in the future?
This is the beauty of the PPA. You can sit back and focus on running your business, knowing you locked in a great rate. No more sweating every
time you open the
Financial Review
What if energy prices decrease in
the future?
Energy prices are volatile and hard to predict, which means there’s inherent risk with any energy contract. Here’s what we do know: current
prices are significantly higher than several years ago, and futures markets suggest that high prices are likely in the medium term. If wholesale prices drop in the future, there’s a risk that a
deal struck now will be ‘out of the money’ in the later years. But you have to balance this against savings achieved in the short term, and the long term certainty provided by a PPA. As industry
experts, it’s our job to provide you with all the data you need to make an informed decision, and help you find the best approach for your business.
Do I have to sign a
10-year contract?
Not at all. Long-term PPA
arrangements are just one procurement option. There
are plenty of others. We can look at quarterly
contracts, energy firming products, or simply shop
the retail market to find you the best price. The
first step is figuring out your energy needs and
overall strategy.
