Westpac pledges to use 100% renewables by 2025, unveils solar PPA

Australian financial and banking group Westpac (ASX:WBC) has joined the RE100 club after committing to switch to 100% renewable electricity by 2025.

The company said on Thursday it will source the equivalent of its entire power demand from renewable energy sources, starting the initiative with a power purchase agreement (PPA) for the 100-MW/120 MW DC Bomen solar project in New South Wales. Under the 10-year off-take deal, Westpac will buy just over a quarter of the solar park’s output after the plant goes online in the middle of 2020. Aussie utility Spark Infrastructure Group (ASX:SKI) acquired the shovel-ready project last week from developer Renew Estate.

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According to Westpac, the PPA would deliver a 45% transition to renewables by 2021 for the bank globally and also provide it with greater cost certainty on its electricity spending. In line with its plans to go all-renewable, Westpac will join the RE100 programme of The Climate Group and CDP that unites companies from various sectors aiming to power 100% of their operations with renewables.

“We see our move towards the use of renewable energy in our operations as being key to delivering on our existing climate change and sustainability commitments,” said Gary Thursby, chief operating officer at Westpac Group.