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CPPA FAQ
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A Corporate Power Purchase Agreement (CPPA) is a long-term contract between a corporate energy consumer and a renewable energy generator. It enables the direct purchase of electricity, typically from wind or solar sources, at a fixed price, providing both budget certainty and a tangible contribution to sustainability goals
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Corporate PPAs offer several strategic benefits:
- Price stability: They protect businesses from volatile electricity markets by locking in long-term pricing.
- Sustainability alignment: They help companies meet climate and CSR objectives by sourcing clean energy.
- Energy strategy integration: PPAs can be tailored to match existing or future energy demand, supporting operational planning and growth.
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Corporate PPAs play a vital role in accelerating the shift to renewable energy by:
- Driving additionality: They support the development of new renewable assets by providing guaranteed offtake.
- Decarbonising supply chains: By sourcing green electricity directly, businesses reduce their carbon footprint and contribute to broader net-zero targets.
- Enabling market innovation: PPAs encourage the integration of flexible technologies like batteries and electrolysers, enhancing grid resilience.
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Centrica Energy offers a wide range of tailored CPPA solutions, including:
- Physical and financial PPAs: With flexible settlement structures to suit different risk profiles.
- Technology-Agnostic Contracts: Covering wind, solar, and hybrid assets.
- Integrated Green Energy Services: Including biomethane sourcing, green gas certificates, and Guarantees of Origin.
- Digital Optimisation: Advanced platforms for real-time energy management and hedging.
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Our position as a trusted PPA partner is based on:
- Market leadership: Managing a significant share of the European CPPA market.
- Proven track record: Years of experience delivering PPAs across sectors and geographies.
- End-to-end expertise: From asset matching and trading to digital optimisation and regulatory compliance.
- Client-centric approach: Solutions are co-developed with clients to meet specific energy, financial, and sustainability goals.
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