Melbourne launches tender for large-scale renewable energy plant

A consortium of large energy users led by the City of Melbourne led has launched a call for tenders to develop a large-scale renewable energy plant, from which they will buy the electricity under long-term contract.

The Melbourne Renewable Energy Project is a collaboration between the City of Melbourne, Australia Post, NAB, the University of Melbourne, RMIT, NEXTDC, Zoos Victoria, the City of Port Phillip, Moreland City Council, the City of Yarra, Citywide, Melbourne Convention and Exhibition Centre and Bank Australia

It was first floated in November 2014, at which time it the first Australian example of a group of large-scale energy users proposing to buy utility-scale renewable electricity through a group purchasing model.

The tender for the Project, released by Procurement Australia, is seeking responses from new renewable energy projects that are shovel-ready and have planning approvals in place.

The successful tenderer will build and operate the plant in regional Australia – a task that is expected to create up to 140 jobs in the construction phase, and a number of ongoing jobs in the plant’s operation and management. Once the winning tender is selected, each member of the purchasing group will enter into a long-term electricity supply contact for renewable energy spanning at least 10 years.

At this stage, the group expects it will purchase 110GWh of energy – the equivalent to a 15-turbine wind farm, or a 250,000 panel solar farm – enough to power more than 28,000 households in Melbourne for a year.

“We are challenging the market to supply us with the right energy at the right price,” Melbourne Lord Mayor Robert Doyle said in a statement. “If the market responds effectively, we will see a new renewable energy plant constructed within the next two years.”

For more information visit: www.melbourne.vic.gov.au/renewables

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