Kempsey Shire Council has cut its energy bills in half thanks to long-term renewable energy plan

The financial and environmental sustainability benefits to Kempsey Shire Council's long-term energy agreement.

Author

Ellie Chamberlain
May 08, 2025

Kempsey Shire Council has cut its energy bills in half thanks to a long-term energy agreement with renewable energy company Iberdrola.

In 2021, Kempsey was one of 12 local councils that signed up to a seven-year Power Purchasing Agreement (PPA), facilitated by Local Government Procurement.

The PPA, established in partnership with Iberdrola, sources energy from a combination of wind and solar farms, including Collector Wind Farm, Capital Wind Farm, Avonlie Solar Farm, and Bodangora Wind Farm. The agreement was designed to achieve three key goals: 

  • help councils transition to 100 percent renewable energy and net zero emissions

  • increase purchasing power through collaboration

  • secure stable electricity prices in a volatile market.

As part of the agreement, Kempsey Shire Council locked in competitive energy prices when the contract began in 2023, just before the electricity market experienced a drastic price surge later that year — from $55 per MWh to $240 per MWh.

In January, through the PPA, the Kempsey Shire Council was able to source 100 percent of their electricity from renewable energy resources. 

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In a media statement, Sustainability Project Officer at Kempsey Shire Council, Jessica Marsh, said the transition will save around $400,000 a year. 

 “The transition will save around $400,000 per year for the seven-year period of the agreement, compared to if the council were paying the full price of electricity,” Marsh said. 

Other sustainability measures implemented over the past few years, such as upgrading office and street lighting to LEDs and installing solar panels meant the council’s annual savings amounted to just under $700,000, according to Marsh.

“In addition, the PPA will result in an estimated reduction of 2,844 tonnes of CO2 emissions in 2025 alone, with a total saving of 13,980 tonnes over the contract’s duration.”

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Michael Jackson, Acting General Manager, applauded the initiative for its financial and environmental sustainability benefits.

“By taking decisive action early, we have not only secured massive financial savings for our community but also made a bold commitment to a sustainable future,” Mr Jackson said.

“Kempsey Shire Council is leading the way in transitioning to clean energy, and we are proud to be reducing our carbon footprint while delivering significant cost savings.”

Thumbnail: Aerial photo of Kempsey Shire Council. Picture supplied.