RENEWABLE PPAS THE COMPLETE PACKAGE FOR ENERGY INTENSIVE MANUFACTURER ORORA
August 2018
Orora has secured the supply of renewable energy from a number of sources, including from Clements Gap Wind Farm.
Headquartered in Melbourne, Australia, Orora is a global packaging producer that employs more than 6,700 people across 43 manufacturing plants and 88 distribution sites in seven countries.
As a major manufacturer in Australia, Orora operates an energy intensive business where surety of supply and price certainty is critical. Having made significant investments in the energy and process efficiency of plant and equipment, Orora took the proactive step of securing two long-term power purchase agreements (PPAs) with energy providers. Under the innovative arrangements, the energy providers supply wind generated electricity to Orora’s operations in South Australia, Victoria and New South Wales, where Orora runs its largest and most energy intensive plants. As a result of the PPAs, Orora has secured the continuing supply of renewable energy for volumes equivalent to 80% of the company’s total electricity demand in Australia.
Importantly, the most recent PPA incorporates a fixed price component for the electricity, where the risks associated with fluctuating output and spot market exposure is carried by third parties that specialise in the provision of energy market insurance products.
This shift towards renewable energy not only has a positive environmental impact, but also gives Orora commercial certainty by reducing the company’s exposure to fluctuating wholesale energy prices.
“Energy price certainty and continuity of supply is a critical consideration for an energy intensive manufacturer like Orora. From our perspective, renewable energy represents a competitively priced and sustainable energy source that will safeguard supply for our Australian operations.”
Find this case study on page 22 of the first edition of Navigating a dynamic energy landscape: a briefing for Australian businesses.