May 1 (Renewables Now) - ERM Power Ltd (ASX:EPW) is accepting by May 10 expressions of interest (EoIs) from project developers and asset owners in Australia interested in securing short-term offtake agreements under the company’s new Corporate Renewable Power Purchase Agreement (PPA) offering.
The new product by ERM will allow businesses to contract, for an agreed fixed price, a certain percentage of the energy and large scale generation certificates (LGCs) generated by a renewable power asset. The idea is to aggregate multiple business customers to gain access to large PPAs, something that would be hard for smaller business customers to do on their own.
“This allows commercial and industrial businesses to buy a partial interest in the output of a large renewable power station, to support their business and environmental energy objectives,” said David Guiver, Executive General Manager Trading.
ERM Power will be the one taking care of all aspects of the PPA on behalf of its customers including sourcing the project, negotiating the terms and conditions and managing financial settlements.
The current call for EoIs from renewable power producers and project developers targets assets in Victoria or New South Wales, connected to the National Electricity Market (NEM), with cpacities of at least 10 MW. ERM is encouraging uncontracted and partially contracted assets ready to enter offtake agreements for a term of between three to five years to respond.
The Victoria ministry for water recently announced that 13 water companies in the state have formed a new organisation in order to purchase electricity from the Kiamal solar farm. The undisclosed price they obtained as a group, called Zero Emissions Water Ltd (ZEW), is lower than the price they would have had to pay individually, according to the ministry’s press release.