All of the power used to operate the desalination plant and transfer pipeline will be offset by Renewable Energy Certificates (RECs). This will mean that the same amount of renewable energy will be injected into the electricity grid as will be used by the plant and pipeline during operations.

 

 

Renewable energy is energy that comes from an unlimited power source, such as wind, tidal and solar sources. Using renewable energy sources reduces use of coal-fired power which contributes to the production of greenhouse gases.

Environment Effects Statement research showed that renewable energy sources were not reliable enough to provide direct, continuous power for the desalination plant. Instead, the Government and AquaSure have committed to fully offset the power used by the desalination plant and pipeline by buying RECs.

The funds generated by the purchase of these certificates will support AGL’s development of the 63MW Oaklands Hill Wind Farm and 420MW Macarthur Wind Farm, as well contributing to other investments in its portfolio of renewable energy projects. These include other wind farms, solar and landfill gas-to-power projects.

This will provide more than enough renewable energy to offset the approximately 90MW used by the Victorian Desalination Project.

The renewable energy requirements for the Victorian Desalination Project have set the highest benchmarks, and have directly stimulated new renewable energy projects.

RECs provide a way for power users such as the Victorian Desalination Project to encourage development of renewable energy in Australia.

• For more information on AGL's renewable energy generation portfolio click here .
• For more information about AGL’s Oaklands Hill Wind Farm click here.
• For more information on the Macarthur Wind Farm click here.

What are RECs?

RECs are Renewable Energy Certificates, also known as Renewable Energy Credits. They are tradeable, non-tangible energy commodities that represent 1 megawatt-hour of electricity generated from a renewable energy source (as defined under legislation).  RECs can be sold and traded or bartered. The funds received from the sale of RECs enable renewable energy companies to cover the higher cost of generating clean energy.