Mars flicks the switch
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The power purchase agreement (PPA) between confectionary powerhouse Mars Australia and French renewables giant, Total Eren, is still one of the biggest wholesale renewable energy contracts brokered for a corporate buyer.
In May 2018, Mars Australia announced it was going 100 per cent renewable by 2020, powering all six Australian factories and two offices via the new 256.5MW Kiamal solar farm, just outside Ouyen in the State’s North-West. It’s a groundbreaking 20-year agreement, which includes the construction of a second renewable project in NSW.
For Renewable Energy Hub, it was a big step. And not just because we helped broker the deal itself. When a corporate giant like Mars (who also own Masterfoods, EXTRA and Pedigree dog food) commits to a wholesale PPA, it sends a message to the entire market that renewables aren’t just good marketing – they’re good business.
“Mars is thrilled to be flicking the switch to solar energy,” said Barry O’Sullivan, GM Mars Australia. “We acted quickly, because the price volatility of energy in Australia made renewables the best option for our business, in addition to getting us closer to our commitment to eliminate greenhouse gasses from our operations by 2040.”
The Mars-Total Eren PPA deal made headlines in the AFR and Renew Economy, but the press coverage really only tells part of the story. In some ways the financial instruments that lead to the deal are even more interesting than the deal itself, and not just for finance geeks (like us) who get a kick out of variable renewable energy firming options.
Read more: https://www.renewableenergyhub.com.au/news/09-10-2019
