Herbert Smith Freehills has advised ACCIONA Energy on a long term power purchase agreement (PPA) with Viva Energy. The PPA commenced in January 2019.
Acciona’s recently-completed 132 MW wind farm at Mount Gellibrand is located near Viva Energy’s Geelong Refinery. The PPA provides for approximately 100GWh per annum, representing around one third of the Geelong Refinery’s annual electricity usage.
The Herbert Smith Freehills team was led by Gerard Pike, with support from senior associate David Ong and solicitor Simon Disney.
Mr Pike said, “This power purchase agreement is a great example of how renewable energy is playing a part in reducing wholesale power prices in the National Electricity Market for the benefit of large-scale industry and also reducing carbon emissions from power production.”
“Companies like Viva lock-in a competitive electricity price in a very volatile wholesale electricity market and ACCIONA receives a stable cash flow from the operation of its fourth wind farm in Australia and its second in Victoria. We are really pleased to have helped ACCIONA on the offtake arrangements for its Mount Gellibrand Wind Farm.”
PwC advised Viva Energy in relation to the PPA.
This deal is another example of Herbert Smith Freehills’ market-leading work in the Australian PPA market. Other recent examples include advising:
- Coca Cola Amatil, the University of Melbourne and ANZ on their corporate PPAs with the Murra Warra Wind Farm in Victoria;
- Pacific Hydro on a PPA with Orora Packaging for the Clements Gap Wind Farm; and
- Total Eren on the Kiamal Solar Farm PPA with Mars.