The contract will commence 1 July 2010, and will last for a term of 15 years. Under the contract, AGL will be required to supply Melbourne Water with up to 180 GW hours of renewable energy per year. AGL will sell the renewable energy to Melbourne Water through the National Electricity Market.
Managing Director of Melbourne Water Rob Skinner said that AGL would supply a variety of different renewable energy sources, including wind.
The contract is part of Melbourne Water’s commitment to become carbon neutral by 2018.
The Sugarloaf Pipeline Project will move water across steep terrain to Melbourne. A hydro electric power plant is already being constructed at the Sugarloaf reservoir by Hydro Tasmania.
Article continues below…In 2009 AGL won two other contracts for the supply of renewable energy to government-owned desalination plants – one in Victoria, and one is South Australia.
AGL’s contract with the Victorian Government’s desalination plant, in Wonthaggi, involves providing 860 GW hours of electricity a year for 27 years.
