The Ararat Rural City Council has joined what is set to be the most significant emissions reduction project by local government in Australia.
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The Victorian Energy Collaboration is a partnership between Red Energy and 46 participating council's that seeks to reduce emissions and energy costs.
Two wind farms will provide renewable energy: Dundonnell wind farm near Mortlake and Murra Warra II wind farm near Horsham.
Ararat Rural City Council will transition to wind energy by July 1, with it being used to power various council-owned infrastructure, including streetlights, sporting facilities and Town Hall.
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Council chief executive Dr Tim Harrison said the project would have both environmental and financial benefits.
"This project enables us to secure electricity at a significantly reduced rate via a collective power purchasing agreement with Red Energy," he said.
"Rather than source electricity individually, the partnership allows the council to purchase renewable energy at a very competitive price, saving up to 25% off our electricity costs, gaining value-for-money for our ratepayers.
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"It makes good sense; it'll reduce council's carbon footprint and council's power bills. Every dollar saved is a dollar we can spend improving our roads, community spaces and services.
"Given our size, we don't have the competitive buying power but together, we can take the lead with renewable energy and make better choices for our community and future generations."
Pyrenees Shire Council has also joined the project.
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