ALDI Australia Commits to Power its Stores and Warehouses with 100% Renewable Electricity from 2021
ALDI’s commitment to doing the right thing has been key to our growth over the past 19 years in Australia. We are the 64th biggest user of electricity in Australia, powering 555 stores and eight distribution centres around the country. As such, we have taken proactive steps to reduce our impact on the environment and to date, have reduced our carbon intensity by 40%1 through the implementation of LED lighting, natural refrigerants, energy efficient chillers and a solar panel program.
We understand that our operations will always require energy to keep our shelves stocked, but to ensure we limit our impact on the environment, we have made a commitment to procure 100% renewable electricity to power our Australian operations, by the end of 2021.
ALDI Australia’s decision to become 100% renewable is a part of the global commitment to set a company-wide ‘Science-Based Target’ (SBT) for climate protection. By setting our climate targets, we are making a long-term commitment to help reduce global warming to well below two degrees Celsius.
We have a three-part approach to achieve our goal of 100% renewable electricity:
1. Onsite generation
Renewable electricity generation and consumption at our local operations, including solar power on six Distribution Centres and 175 stores to date (soon to be 250 stores by the end of 2020). This will see ALDI have Australia’s largest commercial and industrial solar roll-out to date. By the end of the year, we will have installed enough solar capacity to generate about 50,000MWh of power, equivalent to avoiding more than 41,000 tonnes of CO2 per year. This is the equivalent of taking 11,700 cars off the road per year or generating enough electricity to power 7,000 average Australian homes.
2. Offsite generation
Our investment in local renewable electricity generation offsite includes two 10-year Power Purchase Agreements (PPAs), powered by two wind farms. The PPAs are anticipated to generate over 180,000MWh of electricity and result in about 160,000 tonnes carbon emissions avoided each year. In Victoria, our renewable energy partner Tilt, will provide us with an equivalent of about 6% of the energy produced from Dundonnell Wind Farm. In the New South Wales Southern Tablelands, we will source renewable wind energy from the Collector Wind Farm with our partner, RATCH. The 227MW wind farm will dedicate 19.4% of the renewable energy generated to us under the agreement, from the beginning of 2021.
3. Third Party
When the onsite and offsite approaches are not possible or do not enable us to cover all of our electricity consumption, we will purchase renewable electricity from a supplier in the form of renewable energy certificates. Our long-term goal is to reduce the number of certificates purchased and to continue to invest in renewable electricity generation.
You can read about our commitment to renewables in our report - "ALDI Australia's Commitment to Renewables’ report.
1 40% reduction in carbon emissions based on a 2012 baseline, per square metre of sales floor area