10 December 2008
MELBOURNE WATER GOES TO MARKET FOR RENEWABLE ENERGY
Melbourne Water is a step closer to achieving its goal of net zero greenhouse gas emissions and 100% renewable energy use by 2018, following the release of an expressions of interest document to the market.
Managing Director of Melbourne Water, Rob Skinner, said the organisation has mapped out its energy needs through to 2030 and is actively seeking proposals from the market to meet these needs through renewable sources.
“Melbourne Water has clear commitment to sustainability, which is driven by our unique position as a high energy user and the potential impact of climate change on our operations,” said Mr Skinner.
“As a business, we experience the impacts of climate uncertainty first-hand. Persistent falls in rainfall and stream flow into our reservoirs have fundamentally changed how we operate in recent years, and it’s driving the need for investment in diverse water sources.
“Melbourne Water is also a major user of electricity because of the vast amount of energy it takes to move water and sewage around the system.
“Because of our susceptibility to climate change and our responsibility as a big energy user, we feel we have a implicit obligation to lower our net greenhouse emissions to zero and source all of our energy from renewable sources,” added Mr Skinner.
Since 2000, Melbourne Water has reduced its greenhouse gas emissions by 47% and increased renewable energy to 41% of total energy use. This has included starting to build six ‘mini-hydro’ plants that produce energy as a by-product of moving water around the system. However, there remains a need to go to market beyond these initiatives because of the sheer amount of energy involved.
Through its expressions of interest process, Melbourne Water is asking for proposals on the best approach for obtaining renewable electricity, which could include a combination of offsets and accredited renewable energy certificates. A shortlist of applicants will then proceed to a request for tender process in 2009.
Mr Skinner said the anticipated costs of sourcing renewable energy in the short and mediumterm had already been factored into forecast changes to retail water bills, and represented a very small component of the total expected increase to 2012/13.
The cost of renewable energy compared with non-renewable is expected to be close to neutral over the longer term, once cost implications of proposed carbon trading schemes are factored in.
Among assets to be powered by renewable energy include the two pump stations for the Sugarloaf Pipeline, which will carry Melbourne’s share of savings from irrigation upgrades over the Great Dividing Range.
The expressions of interest document is available from melbournewater.com.au to any company that is suitably qualified and experienced in the provision of renewable energy. An information session for interested parties will be held on 17 December. Expressions of interest close at 1pm on 14 January 2009.
Media Contact: Andrew McGinnes +613 9235 7277 +61 (0)403 930 846