Melbourne Renewable Energy Project 2

Summary

The applicants are Royal Melbourne Institute of Technology and seven other diverse entities (the Applicants). Their proposed conduct concerns an arrangement to jointly negotiate the terms and conditions of certain electricity sale agreements and to conduct a collective tender process (Melbourne Renewable Energy Project 2). This involves establishing a joint electricity purchasing group, whereby the applicants would pool their electricity demand and place a single tender into the market calling for proposals for an electricity supply arrangement and an equivalent quantity of large-scale generation certificates (LGCs) from a specific renewable energy project connected to the National Electricity Market. It is expected that the winning tenderer would enter into Retail Service Agreements with each applicant, purchasing electricity generation from the NEM. The winning tenderer would also enter into a LGC Supply Agreement with each applicant purchasing an equivalent quantity of LGCs from a specific renewable energy project. This would collectively support the development of a new 'utility-scale' renewable-energy system connected to the National Electricity Market. The system must be capable of supplying a quantity of carbon neutral electricity into the NEM that is equivalent to the quantity purchased by the applicants.

The Applicants seek authorisation for 15 years.

The Applicants have also requested interim authorisation to allow them to engage in joint negotiations and tendering prior to the ACCC’s final determination. The Applicants have submitted that they will not award the tender unless and until final authorisation is granted. Due to the timing of expiring contracts in June 2020, and in the context of previous ACCC authorisation of similar conduct, the Applicants have requested that the application for interim authorisation be determined within 28 days.

On 22 November 2019 the ACCC granted interim authorisation to allow the Applicants to conduct the proposed tender process prior to the ACCC making its final determination, but not enter into any supply agreements.

On 22 November 2019, the ACCC also issued a draft determination proposing to grant authorisation to the arrangements for a period of 15 years.

The ACCC invites submissions from the applicants and interested parties in response to its draft determination. Submissions are invited by COB 5 December 2019.

The ACCC will progress its assessment of the application in a timely manner. An indicative timetable is set out below for your information.

Indicative date

Stage in assessment process

24 October 2019

Lodgement of application and supporting submission.

28 October 2019

Public consultation process begins.

21 November 2019

Interim Authorisation and Draft Determination Decision

November/December 2019

Public consultation on draft determination including any conference if called.

December 2019/ January 2020

Final determination.

Applicant(s)

  • Fulton Hogan Australia Pty Ltd
  • Mondelez Australia Pty Ltd
  • Citywide North Melbourne Asphalt Pty Ltd
  • Melbourne City Council
  • Deakin University
  • ISPT Pty Ltd
  • Cbus Property Pty Ltd
  • Royal Melbourne Institute Of Technology

Authorisation number(s)

  • AA1000455-1