CS Energy has won a competitive procurement process to supply wholesale electricity to large Queensland Government sites for 10 years from 1 January 2019.
Announcing the contract today, Minister for Housing and Public Works Mick de Brenni said the landmark deal would provide price stability for Queensland Government frontline services such as schools, hospitals and emergency services while helping Queensland meet its commitments under its Climate Transition Strategy.
“This contract will save our state tens of millions of dollars, which means we can put more money towards the delivery of public services, to the benefit of all Queenslanders,” Mr de Brenni said.
“With an initial renewable energy allocation of 15 per cent that increases to 50 per cent throughout the life of the contract, it also keeps Queensland on track to meet our 50 per cent renewable energy target by 2030, and our zero-nett emissions target by 2050.
“Our Buy Queensland strategy continues to drive greater value in our procurement activities, as we focus more heavily on industry engagement to be better informed of the opportunities available to us.
“In this case, it's seen us secure a low, fixed wholesale price with government-owned provider CS Energy to supply all Queensland Government departments and agencies over the next decade – a fantastic result for our state.”
CS Energy CEO Andrew Bills said the contract win marked an important step forward in the execution of CS Energy's strategy.
“This transaction aligns directly with our strategic goals to be a major provider of reliable energy to Australian households and businesses, and to deliver value and stable cash returns to our shareholder,” Mr Bills said.
“We have negotiated a very competitive offer that provides substantial savings for the Queensland Government, and locks in a revenue stream for a portion of CS Energy’s portfolio over the next decade."
The renewable energy allocation in the agreement will initially utilise energy from the Kennedy Energy Park in North Queensland.
Read the Minister's full media release.