At its February 2024 meeting, Leeton Shire Council agreed, in collaboration with the Riverina and Murray Joint Organisation (RAMJO), to accept a proposal from the Hunter Joint Organisation (HJO) to tender for the purchase of power for Council’s ‘large market sites’.
Council’s current ‘large market’ contract with Shell Energy expires on 31 December 2024.
This strategic move aims to significantly reduce electricity costs across the RAMJO group and other participating JOs, benefitting each participating council.
In his report to Council, Acting Director of Operations, Luke Tedesco, said a joint power purchase agreement (PPA) presents Leeton Shire Council a range of benefits and is worthy of pursuit.
“Leeton has five ‘large market sites’ including Leeton’s sewer treatment plant and water filtration plant, the Regional Aquatic Centre, our raw water dam on Toorak Road and raw water lift pump in Poplar Avenue. Together with streetlighting, they consume approximately 1,465 MWh of energy per year and we would like to contain costs as much as possible,” he said.
“We have worked hard to reduce our energy costs by delivering on the adopted Energy Masterplan 2021 including the installation/renewal of solar arrays at the Council Depot, Office Building, Library, Multipurpose Centre, Leeton Landfill and other facilities. It is imperative that we maintain this improvement to our operating expenses by keeping our energy costs as low as possible,” he added.
Mr Tedesco explained that participation in a group purchase agreement is designed to reduce the cost of electricity across the group, benefitting each organisation beyond what they would be able to achieve individually.
The PPA will be pursuing renewable energy supply.
Cr George Weston, Portfolio Lead for Environmental Sustainability, believes that the cost to participate in the tender ($13,980 from already voted funds) represents good value for money and is an efficient procurement process that should deliver best value energy supply rates.
He also highlighted additional advantages, stating, “This agreement offers a tremendous opportunity for Council to reduce its carbon footprint, aligning with both the Federal Government’s 2050 Emissions Reduction Target and the New South Wales Government’s Net Zero Plan 2020–2030.”
Mayor Tony Reneker noted that this strategic partnership will reinforce Leeton Shire Council’s commitment to sustainability and marks a significant step towards achieving broader environmental goals.
“With the integration of renewable energy sources, Council anticipates substantial benefits, both economically and environmentally, in the years to come,” he said.
