Corporate Power Purchase Agreement (CPPA)

Delivering additionality to the grid

Corporate Power Purchase Agreements (CPPAs) are becoming an increasingly popular choice for companies wanting to reach net-zero, as they offer up to 100% renewable power and much-needed additionality to the grid.

A CPPA is a long-term energy contract (typically between 10-15 years), between an electricity corporate consumer and a generator or developer of renewable power. Typically, a CPPA would be between one generator and one corporate offtaker, however, to allow flexibility and greater uptake, a portfolio arrangement for offtakers is now also an option. 

Surveying the options for you

The most widely adopted mechanism in the UK is a Physical (or Direct) CPPA. We will thoroughly investigate all options for your organisation before deciding on the best route. 

A CPPA differs from traditional procurement from a licensed supplier and can bring with it a significant workload – so when entering into an agreement, you’ll need to consider how you’ll manage it for its duration. Our service matches your volume requirements with renewable project developments – acting as facilitator for complex contract negotiations.

Benefits of a CPPA

• Additionality
  CPPAs provide much-needed additionality to the grid. By contracting with a generator, a CPPA enables large-scale off-site renewable energy development, such as wind and solar. 
• Long-term price certainty
  A CPPA provides long-term price certainty of up to 20 years. This protects against rising costs and market volatility, enabling you to budget accurately. 
• Kickstart your net-zero and ESG initiatives
  A CPPA will not only support your carbon reduction strategy, from an ESG perspective, but demonstrate your commitment to sustainability to your investors, customers, and other stakeholders. 
• Secure REGOs
  The demand for Renewable Energy Guarantees of Origin (REGO) certificates will only increase as the UK transitions to net zero. A CPPA will protect against forecasted REGO price increases, as you secure certificates for the duration of the CPPA.