Augusta Margaret River Clean Community Energy (AMRCCE) is delighted to announce that it has entered into an Energy Marketing and Management Agreement (EMMA) with Clear Energy Pty Ltd a subsidiary of Tersum Energy Pty Ltd to deliver affordable and clean energy to the community of Augusta Margaret River.
The agreement, signed on Friday 19 March, by Professor David Wood, chair of AMRCCE and Rod Littlejohn CEO of Tersum and Clear Energy, aims to deliver more than 20MW of renewable generation capacity and in doing so will reduce emissions by in excess of 12,500 tonnes Co2/year. Besides cleaner and more affordable energy, the agreement will also result in local employment and revenue retention for investment within the local community.
AMRCCE had intended to delay work on community projects until such times as it had completed the feasibility studies underway and had some funding to support a social enterprise. However, as community energy projects have started to emerge, AMRCCE commenced investigating other possible options to assist the community to reduce emissions and energy costs. The chosen option is this local energy retailer activity.
The arrangement with Clear Energy comes after a thorough due diligence process conducted over the last 18 months and is similar to that of Clear Energy and Geraldton Community Energy.
The arrangement has many benefits. It aims to deliver more than 20MW of renewable generation capacity within five years. This is in fact twice the original quantity of renewable energy AMRCCE set out to generate via a renewable facility to meet the target established in 2010. The reduction in emissions will be in excess of 12,500 tonnes Co2/year. The arrangement will also result in more affordable energy particularly for businesses which are high energy users, including those in the agricultural sector, as Clear Energy’s model delivers bespoke energy solutions designed to suit their individual needs. There are no up-front costs to users for the renewable assets which will be owned by Clear Energy and will be topped up by grid-sourced electricity where required. Householders will also benefit from cheaper energy without having to find the capital for the installation of renewable assets. They will be provided with renewable assets consisting of photovoltaic panels (PVs) +inverter configured to best match the needs of the customer and their usage pattern.
AMRCCE will use its local knowledge and relationships to promote, market and distribute the energy solutions within Augusta Margaret River. In order to carry out this task, it will be appointed to act as Clear Energy’s electricity marketing and customer management agent to develop bespoke energy solutions for our local community. This role will be remunerated through fees which the AMRCCE will use to pursue its broader not-for-profit role.
Broader community benefits from the arrangement between Clear Energy and AMRCCE include giving preference, where practicable, to the engagement of employees and contractors who reside locally to undertake contract works and provide services in the delivery of the energy solutions. Clear Energy has already appointed a local Business Development Manager and will, in the spirit of the arrangement, establish some of its broader administration functions in the Augusta Margaret River office. As indicated above, the revenue retention, in the form of the electricity management and marketing fee earned by AMRCCE, will be available for investment back into the community. There will also be the expenditure on the establishment and maintenance of a local office. By providing cheaper electricity, the arrangement also provides incentives to attract new industries/enterprises to our local community and enhance economic diversification.
A key consideration for AMRCCE in coming to the agreement was that any partner needed to demonstrate a genuine commitment to sustainability, social responsibility and community engagement and be prepared to adhere to the highest standard of ethics. Our measure of this was whether we would be comfortable that the agreement would be one that we would be prepared to promote to our nearest and dearest and ensure that any prospective customer would be fully and properly informed.
We feel that in Clear Energy we have found a suitable partner and are delighted to have signed our partnership agreement, the Energy Marketing and Management Agreement (EMMA). We are also pleased that this agreement, which has taken some months to develop, will serve as a model for Clear Energy to enter arrangements with other communities and we are pleased to engage with other communities wanting to proceed with such an arrangement to share our experience.
The model and agreement recognise that in working with community groups, such as AMRCCE, with limited assets and financial means and operating largely with volunteers, Clear Energy will need to provide such assistance and resources to allow them to fulfil their role. The model relies for its governance on a joint Agency Oversight Committee to provide direction and oversee the functioning of the partnership.
For retail enquiries contact: AMRCCE/Clear Energy Business Development Manager- Rob McDonald on0418 736 405 | [email protected]
For press enquiries contact: AMRCCE Executive Officer- Paula Cristoffanini on 04230 28 295 |[email protected]
For further information regarding Clear Energy: Clear Energy Corporate Services Manager – Katie Franklyn on 0477 883 068 [email protected]