Origin Energy is partnering with Coles to clean up the retail giant’s energy supply whilst expanding Origin’s national Virtual Power Plant (VPP). The two companies will roll out rooftop solar and battery storage across Cole’s supermarkets across the country.
Supermarkets consume a lot of energy as they require lighting, heating, and cooling. This has driven the Australasian Centre for Corporate Responsibility (ACCR) to promote stronger climate commitments by publicly listed companies.
In 2021, Coles announced its climate targets to generate its electricity from renewable sources by the end of the 2025 financial year. The supermarket giant’s goal is to
buy all its power from sources like wind and solar.
Coles also committed to a net zero emissions target for 2050 and an interim goal of reducing its scope 1 and 2 emissions by over 75 per cent by the end of 2030.
According to Coles CEO Steven Cain, “Our new targets for Scope 1 and 2 emissions commit us to an accelerated reduction greenhouse gas emissions that exceed the climate change ambitions of the Paris Agreement and will help sustain Australia for generations to come by working together with our customers, suppliers and members of the community.”
Coles had installed solar in 87 stores and improved in-store energy efficiency. Currently, electric delivery trucks are being trialled.
Inspiring the confidence of towns and cities in Australia
The recently announced innovative partnership will co-invest in solar at up to 100 Coles supermarkets and liquor stores across the country. This will add a total of approximately 20MW of rooftop PV capacity.
The partnership shows that even the biggest and more complex businesses can run on renewable energy alone. Coles is among the three biggest supermarkets in the country to have committed to 100 per cent clean electricity. Woolworths also committed to buying electricity from renewable sources by 2025 whilst Aldi became powered by renewable energy by the end of 2021.
What the partnership means for both companies
The latest partnership with Origin will help Coles reduce electricity use from each participating store by around 20 per cent on average. It will also help them achieve its 100 per cent renewable electricity goals by June 2021.
As for Origin, the batteries and solar and controllable loads from the supermarkets will be connected to their VPP which will relieve pressure on the energy grid during peak periods. It will also help Origin manage the controllable energy loads across 150 stores in the country for use in the frequency control and ancillary services market.
James Magill, executive general manager of Origin Zero said, “This… marks Origin’s largest customer aggregation agreement providing Frequency Control Ancillary Services (FCAS).”
He added, “This is a landmark alliance between two of Australia’s leading retailers across supermarkets and energy which will see the companies co-invest… to help deliver greater emissions reductions for Coles.”
The rise of commercial solar in Australia
In 2021, the Australian Renewable Energy Agency (ARENA) estimated that supermarkets accounted for around 1% of Australia’s total electricity consumption. However, this number is expected to grow in the coming years, as supermarkets look to reduce their reliance on fossil fuels and meet their sustainability goals.
As the use of renewable energy in supermarkets continues to grow, it is clear that this is a trend that is here to stay.
Supermarkets are increasingly looking to renewable energy as a way to reduce their environmental impact and meet their sustainability goals. This is good news for the environment and for consumers, who are looking for more sustainable ways to shop.
Energy Matters has over 17 years of experience in the solar industry and has helped over 40,000 Australian households in their journey to energy independence.
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