Hunter Councils Secure $2 Million in Savings Through Renewable Energy Deal

In a landmark move towards sustainability and financial responsibility, four Hunter region councils: Maitland, MidCoast, Muswellbrook, and Upper Hunter have collectively secured a renewable electricity supply agreement projected to save them approximately $2 million by 2030.

The Hunter councils have entered into a Power Purchase Agreement (PPA) with Iberdrola Australia, guaranteeing the supply of over 390 gigawatt-hours of electricity to 163 large council sites and streetlighting across 13 participating regional councils in New South Wales. The agreement, effective until the end of 2030, was coordinated by the Hunter Joint Organisation (Hunter JO) and supported by the New South Wales Government.

Maitland, MidCoast, and Muswellbrook councils have committed to sourcing 100% renewable energy under the PPA, while Upper Hunter Shire Council has opted for 30%. This collective shift is expected to prevent an estimated 99,408 tonnes of carbon dioxide emissions in the Hunter region alone by 2030, marking a substantial step towards local, state, and national net-zero targets.

The Hunter JO, a collaborative body representing ten councils in the region, played a pivotal role in orchestrating the deal. By uniting the councils, Hunter JO enhanced their bargaining power, securing a competitive agreement that individual councils might have struggled to achieve alone.

“This agreement represents a significant milestone and shows what councils can achieve when working together,” said Cr Sue Moore, Chair of Hunter JO and Mayor of Singleton Council. “We extend our gratitude to the Hunter JO project team and advisors for their efforts in saving our four Hunter councils over $2 million between now and 2030.”

The Hunter JO’s collaborative approach ensures that the region’s concerns are no longer overshadowed by the louder voices of larger metropolitan councils, such as those in Sydney. By providing a unified platform, Hunter JO empowers the Hunter region to advocate effectively for policies and projects that directly benefit local ratepayers.

The PPA locks in renewable electricity at competitive prices until the end of 2030, providing long-term budget certainty and shielding councils from energy market volatility. Renewable energy will be sourced from Iberdrola Australia’s NSW-based projects, including the Capital Wind Farm, Avonlie Solar Farm, and Bodangora Wind Farm, supporting regional economies and fostering job creation in the renewable sector.

“This agreement is a major step forward for our member councils in reducing our environmental impact,” said Cr Leah Anderson, Deputy Chair of Hunter JO and Mayor of Port Stephens Council. “By securing renewable energy, we will avoid an estimated 99,408 tonnes of carbon dioxide emissions over the duration of the agreement in the Hunter region alone. This significant reduction underscores our commitment to sustainability and helps us progress towards our local, state, and national net-zero targets. It’s a powerful example of how collaborative efforts can lead to substantial environmental benefits for our communities.”

Council leaders expressed enthusiasm for the agreement’s dual benefits of cost savings and environmental impact, highlighting plans to reinvest savings into vital community projects.

“Opting for 100% renewable energy under this agreement is a testament to our commitment to a sustainable future,” said Cr Philip Penfold, Mayor of Maitland City Council. “The cost savings of approximately $564,000 will allow us to invest in vital community projects such as playgrounds, libraries, and road improvements. We are proud to be part of this forward-thinking initiative.”

Cr Claire Pontin, Mayor of MidCoast Council, echoed this sentiment: “The Powering Tomorrow initiative is a good example of how regional councils can come together to secure better outcomes for our communities. By locking in renewable energy at competitive prices, we are ensuring long-term budget certainty and contributing to achieving MidCoast Council’s Climate Change Strategy.”

Muswellbrook Shire Council anticipates significant benefits as well. “This Power Purchase Agreement is a game-changer for our community, delivering both affordable and dependable energy while supporting local renewable projects,” said Cr Jeff Drayton, Mayor of Muswellbrook Shire Council. “We have opted for 100% renewably sourced energy, which represents a significant contribution to Council’s Net Zero initiatives. With savings of around $830,000, Muswellbrook Shire Council can fund important local projects, such as upgrading our roads and footpaths, and ensuring that our community is provided with a high level of service delivery across the broad spectrum of services provided by Council.”

Upper Hunter Shire Council plans to reinvest its savings into essential services. “This PPA not only provides us with cost-effective and reliable energy but also supports local renewable energy projects, fostering job creation and economic growth in regional NSW,” said Cr Maurice Collison, Mayor of Upper Hunter Shire Council. “The savings of approximately $605,000 in the Upper Hunter Shire will be reinvested into our community, funding essential services like playgrounds, libraries, and footpaths. It’s a win-win for our council and the broader community.”

The success of this agreement highlights the effectiveness of the Hunter JO in uniting councils to tackle regional challenges. By providing a unified voice, Hunter JO ensures that the Hunter region’s interests are prominently represented and addressed, rather than being lost among the priorities of larger metropolitan areas.

“This initiative demonstrates the power of collaboration and forward-thinking in addressing energy challenges faced by regional councils,” said Cr Moore. “We are proud of what we’ve accomplished together, and we believe this serves as a model for other councils seeking similar stability and sustainability.”

The Hunter JO continues to work on behalf of its member councils to identify key regional priorities, advocate for these priorities, and build collaborations with other levels of government, industry, and community stakeholders. By doing so, the organisation enhances the region’s ability to influence policies and secure projects that directly benefit residents.

The Powering Tomorrow: Regional Councils NSW PPA sets a precedent for how regional councils can collaborate to achieve common goals. It not only addresses immediate concerns of energy costs and sustainability but also strengthens the region’s position in advocating for future initiatives.

“Collaborative efforts like this PPA not only yield substantial economic and environmental benefits but also empower our communities by giving them a stronger voice,” said Cr Anderson. “It’s a powerful example of how working together can lead to significant positive outcomes for ratepayers.”

“This agreement is more than just a financial and environmental win; it’s a statement of what we can achieve when we stand together,” added Cr Moore. “The Hunter region is poised to continue this collaborative momentum to tackle future challenges and opportunities.”

For further information on the Powering Tomorrow initiative and other projects, visit the Hunter JO website.