Corporate Power Purchase Agreements

A Corporate Power Purchase Agreement (CPPA) is a long-term agreement between a large business and a renewable generator for the purchase of electricity from a specific renewable asset. By signing a contract over several years at an agreed price, both parties gain greater visibility over future energy costs and revenues.

The associated Renewable Energy Guarantees of Origin (REGOs) can be transferred alongside the power, enabling businesses to link their electricity procurement to a named renewable generator. For organisations looking to strengthen their connection to renewable energy, a CPPA offers greater traceability than a standard supply contract.

By providing generators with longer-term revenue certainty, CPPAs can also support investment in renewable energy projects, while helping businesses build greater certainty into their energy procurement strategy.

Every agreement is negotiated, but the process follows the same four stages.

1. Matching: We identify a generator and a buyer whose volumes, technology, location and contract term fit together. With a large portfolio of C&I businesses and renewable generators, we have the experience and extensive network to match you to the right partner.
2. Structuring and pricing: You agree the commercial shape of the deal, whether that is a fixed price, a floor or a collar, and whether the power is delivered physically or settled financially. Your price is then set for the term of the agreement.
3. Sleeving and supply: We manage the wholesale interface, shaping the generator's output against the buyer's demand and covering the balancing and imbalance risk that sits between them. We settle both parties, so buyers keep a single supply arrangement and generators keep a single offtaker.
4. Reporting: REGOs are transferred and retired against the buyer's consumption, providing auditable evidence for sustainability reporting and net zero disclosure.

The term covers several structures. Which one suits you depends on how much of the physical delivery you want to take on.

Sleeved (physical) CPPA

Power is delivered physically to the buyer through a supplier, who sleeves the generation into the buyer's supply and covers the difference between what the asset generates and what the site uses. This is the most common structure for UK buyers who want to keep a single supply relationship.

Virtual (financial) CPPA

Also known as a VPPA or a financial PPA. The two parties settle the difference between the agreed strike price and the market price, and the buyer continues to be supplied as normal. It suits businesses with sites across several regions or countries, where physical delivery from a single asset would be difficult to arrange.

Direct wire or on-site PPA

Generation is connected directly to the site it powers, without using the grid. Network costs are lower, although the asset and the demand need to be physically close together.