How can a CPPA positively impact your business and the environment?

By Talk Power Team | Posted November 20, 2023

The UK have made a commitment to achieve Net Zero emissions by 2050 and it is now more important than ever that we accelerate to achieve this in an affordable, secure, and responsible way. One route to significantly reduce environmental impact to which businesses have either adopted, thought about, or would like to explore further are Corporate Power Purchase Agreements (CPPA).

A Corporate PPA is a direct contractual agreement between a business and a renewable energy generator which in hand, is managed and supported by the energy supplier (also referred to as the offtaker). Corporate PPAs offer a multitude of benefits for both businesses and the environment by empowering corporations to lead the way in sustainable energy adoption, reduce costs, report on sustainable credentials, support local communities, and create additionality of renewable energy sources.

Corporate Power Purchase Agreement: positively impacts your business and the environment.

Positive impact

Navigating the challenges of a changing climate is not easy. More and more businesses are looking for ways to reduce their carbon footprint and meet ambitious sustainability targets by shifting towards greener energy. Choosing a Corporate PPA will ultimately make a real difference to your business achieving its Net Zero ambitions by creating a partnership between you and a renewable asset.

It provides traceability of supply by allowing you to know exactly where your energy is coming from, for example a wind or solar farm situated in the North of England if you choose. It also benefits by adding more renewable energy to the UK grid. Some agreements even create additionality by supporting the build of new renewable generation sites – which is helping Britain to achieve Net Zero.

The growth of renewable energy sources is vital for a sustainable future. Corporate Power Purchase Agreements serve as a mechanism for expanding renewable energy by providing financial security to its generators. Which in turn, encourages development, creates jobs and economic growth.

Economic & social advantages

Beyond the important environmental benefits, Corporate PPAs have economic advantages and are reshaping the way we think about power purchasing.

Not only do they provide access to clean, renewable electricity, the ‘as produced’ cost is likely to be lower than current wholesale market prices. Contracts are typically 10 – 15 years and therefore can be used to hedge some of your power requirements for the long term.

A Corporate PPA provides complete transparency for businesses, enabling them to demonstrate their sustainability commitments to stakeholders and customers through 100% renewable energy by contracting directly with a generator. This creates an opportunity for positive PR to customers and aids towards their overall corporate social responsibility agenda.

Getting your business ready

Now you know the positive impact this route will have on both your business and the environment, I’m sure you’re wondering what’s next and how do you get your business ready.

EDF has a wealth of experience in the PPA market, already partnering with companies like Tesco and Nestle on their Corporate PPA journeys. We pride ourselves in being one of the leading suppliers for businesses in renewable energy and offtake the most renewable electricity of any energy supplier in Great Britain, through PPA contracts. (Source: Cornwall Insight 2023). As a credit worthy offtaker, we can offer long term assurance and support for your business through a range of owned assets and we also work with independent generators to provide a wide range of renewable sources (solar, wind, hydro, energy from waste).

So, whether you know a little or a lot, we can help you begin or continue your Corporate PPA journey. Contact us today at LetsTalkPower@Edfenergy.com