Four Hunter councils have signed a joint renewable energy agreement that will save them hundreds of thousands of dollars, which will be reinvested towards local community projects.
Maitland, Muswellbrook, Upper Hunter Shire and MidCoast councils signed an agreement with Iberdrola Australia, which will collectively see them save $2 million over the course of the deal, which runs until the end of 2030.
They are among a group of 13 regional NSW councils to negotiate the Power Purchase Agreement (PPA), which will supply more than 390 gigawatt hours of electricity to 163 large council sites, along with powering their street lights.
Under the agreement, 100 per cent of the energy supplied to Maitland, MidCoast and Muswellbrook by Iberdrola will be renewable, while Upper Hunter Shire has opted for 30 per cent renewable energy.
Muswellbrook mayor Jeff Drayton said the agreement would save council $830,000, which would be used to fund local projects, such as upgrading roads and footpaths.
"This is a game-changer for our community, delivering both affordable and dependable energy while supporting local renewable projects," Cr Drayton said.
"We have opted for 100 per cent renewably sourced energy, which represents a significant contribution to council's net zero initiatives."
The deal is expected to shield the four councils from price fluctuations in the electricity market and reduce their carbon dioxide emissions by almost 100,000 tonnes.
Maitland mayor Philip Penfold said his council would save about $564,000, which would be reinvested in "vital community projects such as playgrounds, libraries, and road improvements".
"Opting for 100 per cent renewable energy under this agreement is a testament to our commitment to a sustainable future. We are proud to be part of this forward-thinking initiative," Cr Penfold said.
Upper Hunter mayor Maurice Collison said the deal was "a win-win for our council and the broader community".
"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," Cr Collison said.
"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."
The Powering Tomorrow initiative was coordinated by the Hunter Joint Organisation (HIO) and Mid North Coast Joint Organisation.
HJO chair and Singleton mayor Sue Moore said by collaborating together, the councils increased their buying power to secure a competitive deal, reducing the procurement costs by sharing resources and fees.
"This agreement represents a significant milestone and shows what councils can achieve when working together," Cr Moore said.
MidCoast Council mayor Claire Pontin said the deal served as a model for other councils.
"The Powering Tomorrow initiative is a good example of how regional councils can come together to secure better outcomes for our communities," she said.
"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."
The power will be sourced from three of Iberdrola's NSW-based renewable energy projects, including two wind farms near Wellington and Bungendore, and a Riverina solar farm near.
While the PPA will power the vast majority of council sites with renewable energy, some small sites are not covered by the agreement.
