The New South Wales state capital, Sydney, has signed a deal for a low-carbon energy network that could save electricity customers more than $1.5 billion in costs over the next two decades.
The City of Sydney has signed the $440 million deal with Cogent, a company owned by Origin Energy, to build a tri-generation network that will initially supply four city precincts with low-carbon electricity, heating and air-conditioning.
It is part of the council’s broader plan to provide 70 per cent of the city’s electricity requirements using the tri-generation network by 2030.
Tri-generation uses natural gas-powered engines to produce electricity on-site and captures heat waste to be re-used for heating or cooling water.
Sydney Lord Mayor Clover Moore says the “historic” agreement marked the delivery of Australia’s first citywide low-carbon energy network.
“The Sydney tri-generation network could save NSW electricity consumers up to a $1 billion in avoided or delayed spending on grid upgrades,” Councillor Moore said.
“(It) will provide consumers with a cleaner, cost-competitive alternative to inefficient and highly polluting coal-fired power plants,” she added.
The Lord Mayor said the efficient network would help the city cut carbon emissions by 70 per cent by 2030.
Origin’s general manager of retail markets, Jim Galvin, said that by installing the energy generators closer to the sources of demand, the costs and losses involved in transporting energy over long distances were avoided.
“It is therefore a key part of the solution to moving to cleaner forms of base-load electricity generation,” he said.
“We are confident that (the project) will deliver tangible benefits to Sydney, whilst also paving the way for a wider adoption of low-carbon energy generation across Australia.”
The first four precincts to be connected to the network over the next 10 years include the CBD’s north (Martin Place/George Street), south (Town Hall precinct), Pyrmont/Broadway, and Green Square.
At a cot of $100 million they will represent stages one and two of the entire project, accounting for about 63.5 megawatts of the planned rollout of 360 megawatts by 2030.
The city’s tri-generation master plan is expected to cost a total of $440 million.
