Low-carbon energy network

The City of Sydney will begin final negotiations with energy provider Cogent Energy to build and operate a low-carbon energy network to power central Sydney and slash greenhouse gas emissions.

After a tender process and negotiations with several companies, the City of Sydney has decided to move into final negotiations with Cogent Energy, whose parent company is Origin, for the delivery of Sydney’s trigeneration energy network.

“The City is moving closer to turning this groundbreaking project into reality - initiatives like our trigeneration network will ensure that Sydney remains one of the world’s leading green cities in the race to address climate change,” Lord Mayor Clover Moore said.

“Our aim is to take most, if not all, of city buildings off the coal-fired grid as part of our 2030 goal to cut carbon emissions by 70%.

“Trigeneration runs on natural gas and produces low-carbon electricity, heating and air conditioning for clusters of surrounding buildings.

“Trigeneration is nearly three times more energy efficient than coal-fired power stations and can reduce greenhouse gas emissions by 40 to 60% compared to coal-fired power.

“It will also reduce energy costs - local trigeneration avoids part of the ‘network charges’ which currently make up 50% of the average electricity bill. These charges are set to rise to 60% in the next two years as network companies upgrade the poles, wires and substations of the electricity grid.

“Stand-alone trigeneration plants are already being used by a number of companies in Sydney including GPT Group, Stockland, Investa and Westfield. However, the City’s plan goes much further, with trigeneration networks to supply precincts or clusters of buildings similar to Europe, the USA and Asia.”

Trigeneration will initially be installed to supply council buildings and privately owned buildings in the first low-carbon-zone precincts of the City, with a plan to deliver the system’s 360-megawatts-or-more target by 2030 across the whole of the local government area.

By connecting to the trigeneration network, existing city buildings with a National Australian Built Environment Rating System (NABERS) score of 3.5 stars would receive a five-star NABERS rating.

A study by the University of Technology Sydney estimates this project could save up to $1.5 billion in avoided capital investment in new coal-fired power stations and grid upgrades.