Cardinia Shire council says its collaborative investment in renewable energy is on track to cut its electricity bill by $90,000 this financial year.
And it says its participation in the Victorian Energy Collaboration (VECO) will reduce council's greenhouse gas emissions by 5500 tonnes of carbon dioxide.
Chief executive officer Carol Jeffs said 100 per cent of council's electricity needs for facilities including street lighting, libraries, children's and community centres were now being supplied by two wind farms located in western Victoria.
She said Cardinia's Aspirational Energy Transition Plan was aimed at council achieving a goal of net zero emissions by 2024.
"The long term contract through VECO would protect the council from high wholesale prices in coming years and help stabilise the state's energy system".
Ms Jeffs said the first year of the contract had provided a 25 per cent reduction in the cost of electricity, money that could be directed to other essential community services.
Mayor Tammy Radford said VECO, that involves 51 councils across Victoria, demonstrated the value of collaboration in local government.