Budget certainty: CPPAs typically cover a period of between five and 20 years and the price per unit can be fixed throughout the full contract
Corporate Power Purchase Agreements (CPPAs)
Traditionally, businesses buy their electricity from licensed electricity suppliers – but a corporate power purchase agreement (CPPA) offers an alternative.
It’s a long-term contract under which an organisation agrees to buy some of its electricity directly from a grid-connected renewable energy generator, such as a solar or wind farm.
CPPAs help to fund renewable energy projects, as they give generators a long term revenue stream for the energy they produce.
Benefits of CPPAs:
Price discount: Most CPPAs are priced at a discount to current market projections in order to secure funding
Meet carbon reduction targets: CPPAs offer a fast way for organisations to reduce their carbon emissions. Renewable Electricity Guarantee of Origin certificates (REGOS) enable organisations to report zero carbon emissions for that electricity
Corporate social responsibility: CPPAs are a straightforward way of directly supporting renewable energy projects
Transparency: CPPAs offer clear proof that an organisation’s power is from renewable sources
Portability: CPPAs do not stop you from changing energy suppliers, as you can take it with you if you move your supply contract
