INDUSTRY
Dairy
SOLUTION
Energy
With its electricity supply contract nearing expiry and ambitious sustainability goals, Synlait was looking for a long-term strategic energy partner. It was seeking an arrangement that extended beyond traditional electricity supply, with a partner capable of delivering flexible, innovative, and cost-effective energy solutions.
Synlait was particularly interested in exploring innovative pricing models and solutions that delivered stable, predictable electricity costs, optimised energy consumption, improved cost efficiency, supported further electrification, and drove significant reductions in carbon emissions.
After a competitive RFP process, Synlait selected Simply Energy.
Charles Fergusson
Director On-Farm Excellence, Business Sustainability and Corporate Affairs.
We collaborated with Synlait to identify the best contract options and term lengths. We installed metering at their sites to gain insights into their operations and determine peak demand. We reviewed Synlait’s network charges and engaged with Orion, their local network provider, to explore opportunities to manage capacity constraints. This included the potential for more Control Period Demand (CPD) signalling, which could benefit the network and help Synlait reduce costs. Additionally, we worked closely with Synlait’s boiler manufacturer (EPS) and consultant (Lumen) to optimise their e-boiler’s operation in response to price signals.
On the supply side, we’ve put in place a strategic mix of long and short-term, fixed-price and wholesale-exposed contracts. These include a 10-year solar Power Purchase Agreement (PPA), under which Synlait will purchase 25% of the electricity generated by Kōwhai Park, a 168 MWdc solar farm under construction by Contact Energy and Lightsource bp. This agreement will ensure that the electricity used at Synlait’s Dunsandel factory and Dairyworks facility is 100% renewable, helping them reduce on-site emissions.
To support this, various short- and long-term fixed-price, variable-volume (FPVV) agreements have been put in place to ensure continuity of supply and cost management until Kōwhai Park is operational, as well as wholesale supply for the e-boiler to enable flexible operation in response to low wholesale market prices.
To help Synlait optimise the use of its e-boiler at Dunsandel, we implemented Price Responsive Dispatch through our Simply Flex platform. This activates the boiler during periods of low-cost electricity (tracked every half hour) and enables Synlait to switch between its e-boiler and solid-fuel boilers to optimise energy costs.
Through close collaboration with Synlait’s key suppliers and local network, we have optimised savings across multiple value streams. This involves enhancing operational efficiency and maximising the e-boiler’s performance, while also exploring the potential to implement further Control Period Demand (CPD) signalling to benefit the network and Synlait.
Charles Fergusson
Director On-Farm Excellence, Business Sustainability and Corporate Affairs.
In the first 10 days of operating the e-boiler with Price Responsive Dispatch using Wholesale Pricing, Synlait successfully avoided key peak pricing periods and saved over $118,000.
