Pacific Energy – the provider of low-cost, reliable, off-grid power solutions to Australia’s resources industry and remote communities – was chosen by the judging panel to win the asset impact award for APAC.

The company was lauded by judges for the IJGlobal ESG Awards 2024 for having provided “clear evidence of a business model pivot to lower carbon solutions” while demonstrating “focus on a large scale, making a sustained impact to the underlying asset”.

One of the judges said: “Pacific Energy demonstrates multiple ongoing changes in a sector that can be hard to decarbonise. It has achieved significant impact as – at acquisition – renewables and hybrid accounted for approximately 2% of Pacific Energy’s installed capacity. Today, renewables and hybrid energy systems represent nearly 71% of this portfolio.”

Pacific Energy offers a range of energy technologies – including solar, wind, batteries, gas, green hydrogen, diesel and LNG – while owning and operating a 900MW portfolio of 48 decentralised power stations across Australia.

Since its acquisition by Queensland Investment Corporation (QIC) in December 2019, Pacific Energy has actively pivoted into renewable energy technologies in line with industry demand.

Pacific Energy in June 2022 implemented a Green Finance Framework, aligning its funding and sustainability strategies, providing access to competitive debt capital to fund eligible expenditure.

The framework enhanced Pacific Energy’s sustainability position by:

• demonstrating and promoting Pacific Energy’s sustainability credentials to financiers
• establishing clear evaluation criteria and methodology for determining eligible expenditure, which focuses exclusively on renewable energy infrastructure in alignment with green bond and green loan principles

Then in full-year 2023, Pacific Energy committed to achieving net zero carbon emissions by 2040.

These policies demonstrate Pacific Energy’s commitment to developing sustainable energy solutions, as it works to become one of Australia’s leading providers of decentralised integrated renewable power.

To support this pivot towards renewable energy, Pacific Energy made strategic acquisitions to strengthen its renewable and hybrid energy capabilities:

• Acquired solar and battery microgrid specialist Hybrid Systems Australia in May 2020
• acquired ENGV – Australian turnkey provider of green hydrogen production and refuelling facilities – in July 2022

Pacific Energy between December 2019 and April 2023 developed more than 230MW of direct replacement or augmentation of diesel generation with gas, renewables and hybrid energy capacity for companies in the Australian mining sector.

Between 1 April 2023 and 30 June 2024, it signed contracts to build, own and operate a further 204MW of renewables or hybrid capacity to displace thermal generation in Australia’s remote mining regions.

Pacific Energy in April (2024) finalised a new A$350 million debt facility, half of which was allocated as a green loan tranche specifically designated to finance renewable energy projects that meet Pacific Energy’s Green Finance Framework criteria.

The successful integration of these projects into Pacific Energy’s portfolio has enhanced its sustainability profile and contributed to its vision of becoming one of Australia’s leading providers of decentralised renewable power solutions.

One of the recent examples of this strategy saw Pacific Energy in March (2024) design and deliver 4 hybrid power systems for Australian mining company Westgold Resources.

The 4 systems replace 5 diesel-fired plants and will collectively displace 38 million litres of diesel each year, reducing carbon emissions by up to 57,000 tonnes annually.

Each system integrates solar PV panels, BESS, and diesel generators to create a robust and flexible energy solution.

The hybrid systems are designed to optimise energy efficiency and reduce carbon emissions by prioritising solar energy and battery storage over diesel generation.

According to the submission: “This approach not only lowers operational costs but also significantly decreases the environmental footprint of Westgold’s mining activities. The integration of renewable energy into these systems underscores Pacific Energy’s commitment to supporting the mining industry’s transition towards more sustainable practices.

“These installations were completed as part of a broader strategy to enhance the resilience and sustainability of Westgold’s energy infrastructure. The hybrid systems provide critical power stability and reduce dependency on diesel fuel, which is both costly and environmentally taxing.

“By incorporating advanced energy storage technologies, the systems ensure continuous power supply, even during periods of low solar irradiance.

“This project highlights Pacific Energy’s expertise in developing and implementing hybrid power solutions tailored to the specific needs of the mining sector. It exemplifies how innovative energy systems can deliver both economic and environmental benefits and is testament to Pacific Energy’s leadership in renewable energy integration and its proactive approach to addressing the energy challenges faced by Australia’s mining industry.”