Woolworths commits to 100% renewables for NSW, ACT in "landmark deal"

Woolworths Group will partner with the Australian branch of multinational company SmartestEnergy to enable a 100% renewable energy transition for the retailer’s NSW and ACT operations in 2025. This will secure the supply needed for Woolworths to achieve its 2025 renewable electricity commitment in NSW and the ACT.

The companies have signed an eight-year agreement that will see SmartestEnergy Australia supplying electricity to Woolworths’s entire operations in NSW and the ACT.

Starting in January this year, the agreement will expand in 2024 to supply more than 450 sites, including Woolworths supermarkets, Big W stores and Primary Connect distribution centres. The electricity retail agreement has a framework that enables Woolworths Group to procure electricity and renewable electricity certificates through SmartestEnergy, incorporating renewable generation projects.

“This is a landmark deal for SmartestEnergy in Australia and aligns with our strategic ambitions in bringing together businesses with net zero goals and local independent renewable developers,” said Robert Owens, Chief Executive Officer for SmartestEnergy Australia.

“We admire the ambition and leadership Woolworths Group has demonstrated. It has a clear vision for a sustainable future, what it means for their business and the community. Australia is one of the most exciting energy markets in the world. As a global renewable energy retailer and PPA aggregator, we hope to continue developing solutions that support the sustainable transition to a green future,” Owens said.

Woolworths Group said the agreement would provide it with the flexibility to respond to market changes and new opportunities throughout the long-term partnership, allowing the retailer to develop a portfolio of power purchase agreements (PPAs) through SmartestEnergy across different generation technologies and locations with renewable generators within NSW and the ACT.

The first step in building this portfolio of PPAs is the incorporation of Woolworths Group’s existing PPA with Tattarang’s Squadron Energy (formerly CWP Renewables) for Bango Wind Farm. A new PPA with Octopus Investment will also join the portfolio during 2023, drawing electricity from the Darlington Point Solar Farm in the NSW Riverina, supplying enough electricity to power 110,000 households annually.

“We’ve committed to run our entire operations on renewable electricity from 2025, and this agreement marks an important milestone in securing the supply to make it possible in NSW and ACT,” said Woolworths Group General Manager of Green Energy Transition Michael Shelley.

“We’re excited to partner with Smartest to build a portfolio of renewable electricity sources from local renewable sites in these states, on our path to decarbonise and become net carbon positive by 2050,” Shelley said.

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