Australian retailer Woolworths Group Ltd (ASX:WOW) on Thursday said it has signed its first renewable power purchase agreement (PPA), committing to buy electricity from a wind farm currently under construction in New South Wales.
The supermarket chain has inked a 10-year deal with CWP Renewables to purchase 195,000 MWh a year from the 244-MW Bango wind farm project north of Yass. The electricity will be fed into the state’s grid.
The PPA, starting in January 2022, will cover about 30% of Woolworths Group’s New South Wales energy needs with the electricity required to power 108 supermarkets, the company said.
The PPA adds to the retailer’s rooftop solar panels at around 140 locations across Australia and is in support of its objective of moving to 100% renewable electricity by 2025.
Woolworths Group director of format Rob McCartney said the company is “prioritising renewable energy from new build projects like the Bango wind farm, which also demonstrates the potential of green energy to deliver investment and jobs to regional areas.”
“With Woolworths’ decision, CWP Renewables is developing both stages of the approved Bango wind farm and will be generating renewable energy for Woolworths from the start of next year,” commented CWP Renewables chief executive Jason Willoughby
The wind farm is expected to generate a total of 748 GWh a year.