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Lion has today announced it will be an anchor partner in an aggregated Power Purchase Agreement (PPA) with the AHA NSW, allowing hotels in the state to bypass expensive retail energy prices and secure their electricity needs at lower prices.
The deal between Lion, the AHA NSW and ENGIE will establish the world’s first industry-scale aggregated PPA.
Lion’s Managing Director James Brindley said he was pleased that Lion could be a cornerstone of the deal based on the brewer’s energy requirements in NSW.
“We are pooling our energy needs in the state, which includes our largest brewery Tooheys, together with the needs of participating NSW hotels. In 2020, this will see a typical hotel’s energy price drop from 11.5c/KWh to 6.9c/KWh – a 40 per cent saving, equating to around $18,000 a year,” Mr Brindley said.
“Our customers are at the heart of this project, and Lion is focused on helping hotels right across NSW thrive. Like all businesses, pubs are feeling the pinch of rising energy costs.
“The PPA will see Lion’s carbon emissions in the state reduced by 40 per cent.”
AHA NSW and National President Scott Leach welcomed Lion on board as an anchor partner to the PPA.
“This is a ground-breaking arrangement which will help break the back of high electricity prices paid by our members and is a significant first step in moving the NSW hotel industry to renewable energy,” Mr Leach said.
“Lion’s participation in the world’s first industry-scale aggregated PPA demonstrates vision by Managing Director James Brindley – it is about working collaboratively with the broader industry to solve major problems such as energy supply. We welcome the support of Lion – one of our valued partners.”
ENGIE’s retail arm Simply Energy is offering to supply eligible hospitality and accommodation businesses in NSW and the ACT with electricity for 10 years from 1 January 2020 using an industry- scale aggregation model.
The deal was secured by the AHA’s joint venture partner, Clean Energy Strategies, who ran a tender process with more than 50 developers of new solar and wind farms.
The Lion partnership will help underwrite the construction of ENGIE’s Silverleaf Solar Farm in Narrabri in regional NSW.