Innovative virtual power plant a first for Melbourne Metro Council and Hobsons Bay

Hobsons Bay City Council, situated in the south-western metropolitan Melbourne region, is taking the lead to achieve the goal of zero net greenhouse gas emissions for the Council by 2020 and for community by 2030 through the large scale roll out of a Virtual Power Plant (VPP) and the installation of new solar panels on more than 40 Council owned and occupied buildings.

This innovative virtual power plant and large-scale solar panel installation will achieve meaningful emissions reductions - reducing greenhouse gas emissions by approximately 4,000 tonnes per annum, or up to 55% of Council’s direct emissions over the coming two years, which is equivalent to taking almost 600 homes off the grid.

Hobsons Bay Mayor Colleen Gates advises “in a first for a Council in metro Melbourne, this is a bold and innovative way to deliver cutting edge technology and generate real action in addressing the impacts of climate change.

“Our solar project has been developed in response to the community feedback we received through our Hobsons Bay 2030 Community Vision.

“I’m really pleased that we will be able to share the benefits of this project with community groups, sports clubs and other tenants of our buildings – not only from a carbon emission reduction perspective but also in helping them save costs. What is also exciting is that residents of Hobsons Bay will also have the opportunity to become part of the VPP.”

The contract value and scope, as well as the details of the successful tenderer, will be announced once the contract has been finalised.

The VPP will generate almost 4 megawatts of solar power, enabling Council to share energy from under-utilising solar energy sites with those that require more. In other words, energy goes where it is needed, not just where it is generated. 

The VPP also enables Council to install systems on tenanted buildings, with both Council and the tenant benefiting financially from the investment. Tenants will have the ability to purchase solar energy at a discounted rate providing both financial and environmental benefits.

The project will generate substantial year on year savings for the Council by reducing energy costs, which is money that Council can put back into the community through the delivery of services and programs. The project also features a ‘pay back’ within nine years, which is similar to a residential solar installation.

Importantly, this is a future proofed project, with longer term opportunities for the community to participate in what will become a Hobsons Bay Community Solar network. This could enable anyone to opt-in to be a producer of energy, a user of energy, or both. Under this model, community cost savings will grow even further.

An extensive community consultation program will commence in the coming months to invite Hobsons Bay community members to have input into the design of the VPP model. This will help determine how the benefits are shared across the community.

Image of Hobsons Bay Altona Library solar panel installation