Australian communications giant Telstra Corp (ASX:TLS) has struck a power purchase agreement (PPA) for most of the electricity that will come from a 58-MW wind farm in New South Wales.
The Crookwell 3 wind park will be installed by developer Global Power Generation (GPG) near Goulburn. Under the off-take deal, Telstra will buy the majority of the plant’s output at a fixed price, it said on Friday without disclosing the exact contracted volume and the duration of the long-term PPA.
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The agreement supports Telstra’s goal of using 100% renewable energy generation by 2025 and brings it more than halfway to this target. The telecom giant’s plan is to either own or contract renewable power capacity that will be needed for its entire operations.
Crookwell 3 is planned to go live in the middle of 2023. The remaining portion of the wind farm’s production will be retained by GPG and sold into the market.
The PPA marks Telstra’s third PPA in Australia, where its power purchasing spree started with a 2017 contract for getting the whole output of the 70-MW Emeral solar park in Queensland. Last year, it was part of a consortium of other corporate buyers in an off-take deal for the output of the Murra Warra wind farm’s 226-MW first stage in Victoria.
Telstra aims at cutting its absolute carbon dioxide (CO2) emissions by at least 50% by 2030.