Wollongong City Council will join other councils in NSW in seeking its energy from renewable sources.
Councillors voted at Monday night's ordinary meeting to participate in a joint tender for a large-scale, renewable power purchase agreement.
The council says this agreement will lead to a reduction in overall greenhouse gas emissions of almost 15,000 tonnes of carbon dioxide each year.
Under a power purchase agreement, a buyer purchases renewable energy from a retailer or generator for a specific price and timeframe.
Wollongong City Council and other participating NSW councils will together put out a tender through Procurement Australia for this agreement.
"This is such an important step for council - it will be a major reduction in our overall emissions, and mean that we can begin transitioning to electric vehicles, trucks and equipment like mowers," Cr Mithra Cox said.
The report to council said the estimated cost was below current energy expenditure.
The renewable energy purchased will power services and large facilities such as the city's streetlights, libraries, and pools.
The council has adopted targets of net zero emissions from council operations by 2030, and net zero emissions from the City of Wollongong by 2050.
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