The contract commences on 1 October and will result in the ACT Government increasing its use of green electricity from around 18% to 23% of total consumption as part of its commitment to reducing its emissions footprint.

The government agencies covered by the contract consume about 146.21GWh of electricity a year, the highest amounts being used by the streetlight network (37GWh) and the Canberra Hospital (26GWh).

"With the exception of Tasmania, which can use 100% green power due to the availability of hydro electricity, this is easily the highest take-up of green electricity as a percentage of consumption by any Australian State or Territory Government," ACT chief minister Jon Stanhope said.

"The Commonwealth Government has a target of 8%, the New South Wales Government 6%, the Queensland Government 5%, the South Australian Government 5%, the Victorian Government 10% and the Western Australian Government 5%.

"Electricity use accounts for 60% of the ACT's greenhouse emissions so it is important for the ACT Government to set a good example by using 'green' alternatives."

The additional green electricity purchased under the contract will be accredited under the Green Power national program that sets clear environmental standards for renewable energy services offered by power companies.