Commercial, Finance, Sourcing Renewables - August 25, 2021
Equinix Australia Leads Group for Joint PPAs
The Australian Competition and Consumer Commission (ACCC) granted Equinix Australia the authorization to pool its electricity demand with a group of retailers to better negotiate power purchase agreements from new or existing solar or wind projects.
The other companies that Equinix will be able to jointly tender and negotiate these agreements with are the Australian branches of HSBC, Nike, Goldman Sachs, and H&M. The authorization from ACCC was necessary because the companies involved could have been considered in competition for the purchase of electricity and would be at risk of breaching competition laws in the case of joint conduct.
This development is expected to result in transaction cost savings, greater investment in renewable energy sources, and a reduction in GHG emissions for the participating companies. The companies will still be able to individually sign PPAs for their own energy supplies independently from the group if that need arises.
The authorization was granted for 24 years and is set to expire in September 2045.