Thanks to a recent agreement with SCA Property Group, ReNu Energy will be supplying solar systems to shopping centres across the country.
The initial component of the inter-company agreement will see the delivery of four solar PV and embedded network systems to shopping centres in rural and regional areas. Four targeted regions have been identified for the solar upgrade. These are Griffith (NSW), Mt Gambier (SA), Murray Bridge (SA) and Lismore (NSW). The total installed capacity between these centres will be 2.9MW, with systems ranging in size from 360kW to 1.2MW.
ReNu Energy will install, own and operate the solar PV and embedded network systems within each centre for an initial period of 10 years, after which ReNu Energy will be given the option of three and five-year extensions, adding up to a potential maximum of 25 years on aggregate. The agreement also provides ReNu Energy with the first right of refusal – subject to ‘due diligence and satisfactory performance’ to evaluate the delivery of a further seven projects to centres owned by SCA.
Under the agreement, ReNu Energy will execute cornerstone electricity supply contracts with centre management in each individual shopping centre. Shopping centre tenants will also have the option to use ReNu Energy’s electricity supply contract, which could potentially result in reduced electricity costs.
The electricity sold by ReNu Energy will be sourced firstly from onsite, behind-the-meter solar PV, to be installed on the centre roofs. Any shortfall in electricity supply will be sourced from a retail electricity provider. This two-pronged approach will ensure that all centres are equipped with a consistent and reliable electricity supply, mitigating the need for ReNu Energy to take on any wholesale electricity market risk.
The construction of the first four projects is forecasted to cost $4.33 million. It is expected to generate $700,000 in their first full year of operation.
Griffin Plaza in Griffith will be the first centre to receive the network, with installation expected to be completed in the coming months. Sites for Mt Gambier, Murray Bridge and Lismore are yet to be confirmed.