Yarra Valley Water is part of a new energy partnership to help minimise greenhouse gas emissions and maintain affordable water bills for customers.
From October this year, it will join 13 leading Victorian water corporations under a new umbrella organisation called Zero Emissions Water (ZEW).
ZEW will buy solar power from Kiamal Solar Farm in north-west Victoria, Yarra Valley Water announced on 23 April.
Purchasing energy as one combined entity compared to separately means a cheaper rate, which Yarra Valley Water said would help maintain steady customer bills.
Managing director Pat McCafferty said that the Victorian water industry was committed to advancing projects that benefited the environment and created more return on investment for customers.
“This deal is a smart and innovative way of doing business that will help to prevent our operating costs from increasing, so that we can maintain affordable prices for customers,” Mr McCafferty said.
“Water security and climate change are closely linked and we are strongly committed to changing the way we operate to help reduce emissions and benefit the environment.”
The deal will allow Yarra Valley Water to purchase 7000 MWh of electricity per year, which is 25 per cent of its total annual energy requirement.
The deal is the first of its kind in Australia and is a step towards the sector achieving net-zero emissions by 2050.
Yarra Valley Water’s waste to energy plant at Wollert has been operating for almost two years and has processed more than 34,500 tonnes of commercial waste, generating almost 7,900,000 kWh of clean energy.
The plant is now producing about 25 per cent of Yarra Valley Water’s overall energy requirements.
The plant powers itself as well as the adjacent Aurora Sewage Treatment Plant with enough energy to transport back to the grid and power about 1500 houses a year.
Planning for a second waste to energy plant is underway.
Yarra Valley Water has also invested in solar panels at its Mitcham head office and Upper Yarra, Healesville and Whittlesea treatment plants.
Yarra Valley Water aims to be 100 per cent renewable by 2025.