ACT’s Renewable Energy Scheme Delivers Financial and Environmental Wins Negative Costs for ACT's 100% Renewable Scheme

The Australian Capital Territory’s 100% renewable energy scheme has once again achieved a negative cost for the June quarter, marking the fourth time this has occurred. This means the scheme not only slashes electricity emissions but also shields consumers from soaring energy prices.

The scheme operates as a hedge, becoming cost-negative when wholesale electricity prices are high. This was particularly evident during 2022 when global energy prices surged due to the war in Ukraine, causing electricity prices in most parts of Australia to rise by 20-30%. However, ACT residents were protected from these spikes thanks to the structure of their renewable energy contracts.

The ACT Government has contracts with nine wind and four solar farms, ensuring them a guaranteed price per megawatt-hour (MWh) of electricity generation. When these renewable projects sell electricity on the spot market for more than the contracted price, the excess is refunded to ACT consumers, leading to cost-negative outcomes.

Since the scheme began in 2014, it has played a pivotal role in the construction of 840 MW of wind and solar farms, contributing around 2.5 terawatt hours of clean energy annually and cutting carbon emissions by approximately 2.3 million tonnes per year. The ACT’s contracts also ensure long-term savings by securing renewable energy certificates (LGCs) at a lower price than market rates.

This innovative model has enabled large-scale renewable projects, reduced ACT's carbon footprint, and protected households from price shocks. By purchasing electricity from wind and solar farms directly, the ACT’s renewable energy scheme has delivered on multiple fronts: clean energy, lower emissions, and cost stability.

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