Soaring electricity prices have pushed Warrnambool City Council's power bill up 24 per cent to $1.048 million this year, but it is hoping a joint push by municipalities for a green power deal will slash prices.
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The council has joined forces with 47 other municipalities in a bid to get a good deal on power while at the same time meet Warrnambool council's 2026 target of sourcing 40 per cent of its energy from renewables.
But if it fails to bring savings for ratepayers, a council spokesman said it would drop out of the deal which known as a Power Purchase Agreement.
The 48 councils would purchase enough renewable electricity to power 47,000 homes as part of the largest ever emissions reduction project undertaken by local government in Australia.
The cost of power has pushed the city's annual electricity bill from $846,000 in 2017-18 to $1.048 million in 2018-19 and covers the cost of street lighting, AquaZone and other council facilities.
The sharp rise comes despite the council installing smart street lighting to save the council $100,000 a year.
Mayor Tony Herbert said the initiative was really exciting.
"Subject to a successful tender, 40 per cent of council's energy will be sourced from wind or solar power," he said.
The partnership will seek a new electricity supply contract via a request for tender later this year, and the agreement is expected to have a lifespan of seven to 10 years.
"Council uses a significant amount of electricity to run street lights and facilities such as the stadium, AquaZone, the Lighthouse Theatre, Warrnambool Art Gallery and the main Council office at 25 Liebig Street," Cr Herbert said.
"The PPA will mean that 40 per cent of the power at these facilities will come from renewable sources and, as we move closer to the year 2040, we will be looking to increase that percentage."
The deal would reduce the council's annual emissions from electricity consumption from 5160 tonnes of CO2 equivalent to 3117.
A council spokesman said the agreement could help another renewable energy project off the ground.
A similar power purchase agreement between some Melbourne councils and businesses recently helped support the construction of a new Victorian wind farm.
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