VICTORIAN RENEWABLE BUYING GROUP
CASE STUDYVictorian businesses achieved leading price renewable electricity by using a council sponsored buying group
ENERGY SUPPLY STRATEGY, RENEWABLE ELECTRICITY PROCUREMENT
Enabling market leading rates and sustainability through renewable group buying
The Business Renewables Buying Group (BRBG) supports independent Victorian businesses cost effectively transition to 100% renewable electricity by harnessing the value of collective purchasing.
Victorian councils initiated the program and appointed 1Circle to be the Facilitator and Energy Advisor of the BRBG program.
The BRBG has previously contracted two buying groups in 2023 and 2024 for 5-year renewable agreements, with the third underway in 2025.
The success of the program is evident in achieving future council support, Cities Power Partnership Climate Award for collaboration, and final authorisation for 15-years from the ACCC.
The program achievements illustrate the importance of educating decision makers on what it means to switch to renewables and cost reduction/neutral position can be achieved through the load scale and supply options made available through group buying
Great to work with in the move to renewable energy
Joining the Business Renewables Buying Group made buying green power easy. Bringing us one step closer to our net zero goals
Without 1Circle’s oversight, experience, and manner the outcomes we have managed to achieve would still be on the horizon and I am grateful for the knowledge and input [they] continues to provide to this process.”
Challenge
Supporting businesses in their decision to switch to renewable electricity and/or demonstrate how to more cost effectively buy renewables presents multiple challenges including:
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- Cost uncertainty: many are unsure how the true cost of buying renewable electricity compares to standard power
- Experience: Making long term electricity supply decisions is not common for most businesses
- Market volatility: Global events such as the war in Ukraine, the COVID-19 pandemic, and increased generation outages have caused significant instability in energy markets, leading to unpredictable pricing and supply conditions
- Emissions targets: Managing individual business emissions goals and specific targets with the timing of group procurement requires coordination
While the concept of collective purchasing is generally understood, most organisations are yet to explore the benefits of pooling their electricity usage.
Solution
Victorian councils appointed 1Circle to be the Facilitator and Energy Advisor for individual business participating in the BRBG program to achieve the cost-effective transition to renewable energy.
1Circle delivered a comprehensive end-to-end solution for large-market commercial buying groups in their switch to renewable electricity through:
- Aggregating demand to increase purchasing power and developing accurate group energy forecasts
- Educating stakeholders on renewable energy options, the benefits of long-term contracts, and the real impact of transitioning to renewable electricity
- Running competitive, multi-round procurement processes to secure market-leading prices for long-term agreements (5+ years)
- Providing ongoing support throughout the decision-making and implementation phases
In parallel, 1Circle also facilitated procurement for small-market sites and businesses in other states, ensuring a holistic and inclusive transition to renewable power.
Results
Cost effective transition to renewable electricity
- Achieved a long term fixed agreement for 5 years, hedging against market volatility
- Most members achieved a cost neutral transition to renewables – some members will pay less for power in 2028 compared to their previous standard power contract
100% Renewable electricity
- All electricity is sourced from renewable sources
- The 2023 and 2024 groups have delivered ~88,000 tonnes C02 emissions reduction
Stakeholder Approval
- Unanimous support from all stakeholder groups for the switch to renewable energy, with stakeholders confidently educated about costs, sustainability options and broader benefits
- Subsequent groups have been approved by councils and received ACCC authorisation in accordance with competition law
1circle Energy Procurement Service:
1Circle is a specialist in procureing renewable and standard energy agreements
Contact us to discuss your energy needs
Purpose
We consistently exceed our clients expectations using our specialised electricity procurement service that includes:
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- Developing energy supply strategies – how to achieve cheaper energy and move to renewables
- Single site and portfolio (multi-site) procurement
- Standard power
- Renewable power including long-term Power Purchase Agreements and shorter-term Greenpower and other renewable options
- Single customer and Group buying arrangements
Options
There are multiple competitive options for the supply of electricity via the grid that include:
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- Duration/Term: 1-5 years for standard agreements, 1-15 years for renewables
- Emissions: standard power with emissions and renewable (certified renewable with no greenhouse gas emissions)
- Variability and structure: fixed price by year, fixed price for all or part of the agreement term
Renewable electricity offers are taken from a greater range of options and as a consequence, have more considerations that impact price, cost risk, perception and relative complexity. 1Circle provides the guidance through these options
Process
Our five step process consistently delivers excellent outcomes and managed expectations
Refine target outcome including cost, contracting term, renewable outcome, use of on-site solar, risks
Define with clarity present energy use, cost and forecast changes in requirements
Manage multi-round competitive procurement process
Rigorous financial and risk analysis, and support stakeholder decision making through to agreement
Manage the implementation of the agreement including budget updates and bill validation