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Australian PPAs Move Beyond Green Power Contracts

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Recent deals show storage, firming and demand-flex moving to the centre of large-user procurement. 

Recent Australian Power Purchase Agreement (PPA) activity points to a clear shift: large energy users are no longer only seeking renewable certificates or a fixed $/MWh hedge. Instead, they are underwriting energy capacity that can be shaped around both their operational load requirements and the evolving needs of the grid. 

One of the clearest examples is Firmus Technologies’ 12-year agreement with Gunvor for 600 MW of firm power to support AI/data centre projects in South Australia. The agreement is backed by commitments to deliver 1.2 GW of new renewable generation and 1.5 GWh of battery storage by 2032, with GreenPoint Energy’s 200 MW / 800 MWh Koolunga Battery Energy Storage System (BESS), becoming the first project to reach financial close as a result. 

Amazon’s April 2026 Australian renewable energy portfolio demonstrates a similar trend. The company announced nine PPAs totalling 430 MW, with eight agreements incorporating battery storage and three structured as utility-scale solar-plus-battery hybrid projects. 

Firming is now part of the PPA, not an afterthought 

The most innovative renewable energy deals are no longer limited to “solar or wind plus certificates”. Increasingly, they combine generation, batteries, firming and sometimes demand response. Flow Power’s 5-year PPA with SOILCO, for example, combines solar and battery storage at the Cootamundra Energy Project. This structure enables the renewable generation to be shaped and firmed, delivering a more reliable energy supply to the customer. 

New buyer profiles are changing market expectations 

AI and data centres are emerging as active demand-side participants, not passive customers. 

For example, the Firmus-Gunvor agreement includes a demand-response commitment that allows Firmus to reduce consumption for up to 220 hours annually when wholesale prices exceed agreed thresholds. As demand from data centres, advanced manufacturing, and electrification continues to grow, procurement structures are evolving to accommodate more dynamic operating profiles.

Risk allocation is becoming the real product

The Australian energy market has evolved from buying megawatt-hours to buying flexibility, resilience and risk management outcomes. A prime example is Engie’s Virtual Energy Storage Agreement with AGL. This arrangement enables Engie to access the operational flexibility of a two-hour battery through a derivative-based contract rather than owning storage directly. Such an agreement enables the off-taker to manage wholesale price volatility, with the value residing in the risk management attributes and operational flexibility rather than the energy alone. 

What this means for Commercial and Industrial (C&I) buyers

For large Commercial and Industrial (C&I) energy users in the National Electricity Market (NEM), the next procurement strategies should start with load shape, flexibility and risk appetite, not just headline PPA pricing. 

The practical opportunity is a diversified energy portfolio that may include:

  • Structured or aggregated PPAs,
  • Retail supply contracts
  • Large-scale Generation Certificate (LGC) strategies  
  • Renewable Electricity Guarantee of Origin (REGO) strategies
  • Battery Energy Storage System (BESS) integration
  • Demand flexibility and demand-response programs
  • Ongoing performance tracking 

This is where SE Advisory Services Energy Transition team helps organizations with developing an integrated strategy, procurement, risk management, modelling, and portfolio performance support. 

How Schneider Electric can help

SE Advisory Services Energy Transition team can help buyers translate these market shifts into practical procurement strategies: assessing load-shape and ramp-rates, testing PPA and retail structures, valuing firming and storage, managing LGC/REGO exposure, and aligning commercial decisions with sustainability objectives and risk appetite. 

Conclusion

The next wave of renewable procurement will be shaped less by certificate volume and more by flexibility, firmness and risk allocation. C&I buyers that act early can secure better project access, reduce exposure to volatile markets, and build portfolios that support both cost and decarbonisation outcomes. 

If you’re starting to think about renewable energy procurement, let’s talk. Get in touch with our expert Marisa Watts to start the conversation.