Facilitating an innovative Corporate Power Purchase Agreement (CPPA) between Low Carbon and Lloyds Banking Group

One of the ways we are helping Britain achieve Net Zero is by working with renewable developers and helping businesses achieve Net Zero.

You may have seen we recently announced our latest agreement with renewable developer Low Carbon, to shape, balance, and sleeve renewable energy from two of their new build UK solar projects into Lloyds Banking Group’s supply contract.

So, what does this actually mean and how does it work?

There are three elements that are required to deliver a successful CPPA. The developer (Low Carbon), a supplier (incumbent supplier for Lloyds Banking Group) and a balancing and shaping partner (EDF Business Solutions).

All CPPAs need a credible and reliable balancing and shaping partner. Simply put – the service is a conversion process which turns the as-produced power generation into firm baseload power.

Also required is a counterparty who can be flexible in how they deliver the baseload power. As a trusted industry counterparty, EDF Business Solutions are able to enter into Grid Trade Master Agreements (GTMAs), to sleeve the power from the generator into the corporates (Lloyds Banking Group’s) supply contract. This means we don’t have to be your incumbent energy supplier to send you the baseload power from the CPPA.

Low Carbon have appointed EDF Business Solutions to do exactly that. Through facilitating the agreement, EDF Business Solutions are enabling the energy transfer between Low Carbon and Lloyds Banking Group and providing them with route to market services. As the chosen balancing and shaping partner, we will be managing the intermittent renewable power from Low Carbon’s solar farms, and shaping it into a firm, baseload block, then sleeving it into Lloyd’s Banking Group’s supply agreement. You can read more about what power balancing and shaping is, and how it works, here.

Harnessing Solar Power through a CPPA

EDF Business Solutions have signed two four-year agreements with Low Carbon’s latest solar farm projects.

The Meadow Solar Farm is located 1.5km North-West of Kimpton, Hampshire and Pepperhill Solar Farm is located in Albrighton, Shropshire. Both solar farms are currently under construction and are expected to be commercially operational in early 2025. Once complete, Lloyds Banking Group will receive 50 GWh of clean electricity annually for ten years – the equivalent of powering more than 14,000 homes.

This is an innovative CPPA led by Low Carbon, and through appointing EDF Business Solutions it has not only helped with the build out of additional renewable generation in the UK, but importantly helped power Lloyds Banking Group’s UK property estate and avoid over 21,000 tonnes of C02 emissions each year.

Through these long-term CPPAs, it ensures that Lloyds Banking Group have a long-term solution for sourcing renewable electricity and marks a significant step forward in their renewable energy approach and corporate Net Zero goals. As a result of Lloyds Banking Group’s investment in both solar farms, they are now able to develop vital enhancements to support nature, biodiversity, and local wildlife.

Low Carbon’s goal:

Low Carbon creates large-scale renewable energy to fight climate change by investing in, developing, and operating solar, wind, energy storage, and energy from waste projects across the UK, Europe, and North America. By working with partners like EDF Business Solutions, it enables Low Carbon to develop different finance options that are vital to the build out of more renewable energy capacity.

How this helps Britain achieve Net Zero

It is exciting to be working with Low Carbon and Lloyds Banking Group and providing these routes to market services for renewable energy. This demonstrates real positive change, and it is great to see three parties working together to achieve the same goal. Whilst EDF Business Solutions have lots of experience being both the supplier and the balancing and shaping partner, it demonstrates this doesn’t have to be the case for us to have a positive impact and make a difference. As a result, this removes restrictions or limitations in being able to facilitate and make the CPPA happen, meaning there are more opportunities for creative and innovative CPPAs, enabling more to get off the ground and accelerate Net Zero.

Ready to sell your power?

As well as being Britain's biggest generator of zero carbon electricity, EDF also offtake the most renewable electricity of any energy supplier in Great Britain, with the highest PPA market share of capacity under contract.*

EDF Business Solutions are experts in many different PPA and CPPA structures and are continuing to lead the way in the PPA market, utilising market expertise to structure, facilitate and support many agreements between corporates and generators. Whilst CPPAs are growing in popularity with increasing demand and are key method for developers of renewable energy to get investment certainty and support the build of the project, they are not the only way to sell your energy.

Find out more here or get in touch with our PPA experts to discuss your options and find out which PPA could be suitable for you!

Contact us today at letstalkpower@edfenergy.com