The move is in direct response to feedback from students, staff and institutional stakeholders who have encouraged the institution to do more to tackle climate change through increased investment in renewable energy.

“Social and environmental responsibility is at the very core of our operations. Our students, staff and community told us they want us to demonstrate our commitment to environmental sustainability in a tangible way, so we are extremely pleased to partner with Red Energy to use 100% renewable electricity,” incoming vice-chancellor Alex Zelinsky said  

The contract is worth $48 million over 7 years. The university will purchase 40 gigawatt hours per year, the equivalent to the electricity consumed by 5000 average homes.

It will commence on January 1 2019, with 100 per cent renewable electricity provided to the Callaghan and Central Coast campuses a year later once Red Energy has finished building its solar, wind and hydro capacity. 

“In addition to making a positive environmental impact, the new contract delivers cost savings that will enable us to continue investing in strategic initiatives. This is about us using our buying power for good,” Professor Zelinsky said.

Paul Broad, managing director of Snowy Hydro, which owns Red Energy, said the energy supply agreement with the university was a landmark occasion for the sector. 

“On-demand hydro from the mighty Snowy Scheme will underpin our contracted wind and solar generation, meaning Red Energy can supply the University of Newcastle with reliable renewable energy,” Mr Broad said. 

“As a Novocastrian and a university alumni, I’m delighted the University of Newcastle is leading the way.”

The university has a long history of promoting environmental sustainability.

The institution was one of the first institutions to sign the Tallories Declaration of University Leaders for a Sustainable Future in 1990. 

More recently, it made a commitment to the sustainable development goals set down by the United Nations in Paris in 2015.

Bachelor of business and law student Phoebe McIlwraith said the university was responding to an immediate need to address climate change. 

“It’s up to us as individuals and more broadly as committees and organisations and institutions to really think about this issue now so we don’t have to think about the ramifications in the future,” she said.  

The Red Energy partnership complements the university’s ongoing solar panel project, which has seen 278 solar panels installed at the Ourimbah campus. 

The university is also committed to installing a further 7,000 solar panels at the Ourimbah and Callaghan – one of the largest photovoltaic solar installations in the higher education sector. 

Combined, these installations could power around 500 typical households. 

The University of Newcastle’s multi-million dollar investment portfolio has become progressively greener in recent years as it has moved towards more environmentally sustainable options.

A 2014 review of the university’s $226.2 million portfolio of listed shares and managed funds found all of the institution’s investments were rated between 1 and 3 out of five for environmental sustainability, social responsibility and good governance.