Warrnambool Council to save $100k a year by switching to 100% renewable power

Warrnambool City Council is set to run on 100 percent renewable electricity after locking in a new power purchasing agreement that’s expected to save around $100,000 a year.

The decision was made at last Monday’s council meeting, where councillors voted unanimously in favour of the new agreement, endorsing the deal and praising the dual benefit of cutting both costs and emissions.

The agreement will see nearly all council-operated sites moved onto the green energy contract. 

A small number of more specialised facilities, such as remote pumping stations, aren’t eligible to be transferred across, but the council says these sites represent only a minor portion of its total energy usage.

Speaking to the West Vic Brolga on Wednesday, Warrnambool council CEO Andrew Mason said the shift followed a review by the council’s environment team.

“They reviewed our electricity agreements, did some market research and sought quotes from alternative providers,” Mason said. 

“Saving on the power is certainly good news, and that saving will go into providing other council services or infrastructure.”

With councils across Victoria facing cost pressures from rate capping, Mason said finding new ways to improve council efficiency and save more money had become more important than ever.

Rate capping limits the amount that councils can increase their rates each year.

“We, and other councils, need to keep getting more efficient and doing what we can to find savings. This is a good example of that,” he said.

“There were no upfront costs or overheads, but it’s a good example of our environment team constantly looking for both cost savings and ways to move towards energy efficiency and carbon neutrality.”

Mason told councillors the deal was a “good news story” that aligned with Warrnambool’s long-term sustainability goals.

Councillor Matt Walsh backed the move, saying it made sense both financially and environmentally.

“Just like a consumer should shop around for the best price on their electricity, it’s nice to see that as a council we’re able to do that too,” he said.

Councillor Debbie Arnott agreed, noting the $100,000 saving was “not to be sneezed at”.

Councillor Willy Benter said he was “surprised” that switching to 100 percent green energy could still deliver a cheaper outcome than the previous contract.

Mason told the Brolga the council’s broader energy strategy to achieve net zero emissions by 2026 included boosting self-generation, as well as introducing a fully-electric fleet of vehicles.

“So buying green energy, particularly where it’s delivering a cost saving, is an important mechanism for us,” he said.

“These sorts of decisions help us get there.”

The switch is expected to take effect in the coming weeks.