Power Purchase Agreements

A Power Purchase Agreement (PPA) is a long-term contract between an energy buyer and a renewable energy producer. It defines the terms under which electricity is generated, delivered, and paid for - typically from wind, solar, or hydro sources. PPAs are a cornerstone of the energy transition, enabling businesses to secure clean energy at predictable prices while supporting the development of new renewable assets.

PPAs offer more than just green credentials. They provide:

• Price stability: Locking in energy costs over 10–15 years helps mitigate market volatility.
• Sustainability impact: PPAs directly support the build-out of new renewable capacity, helping companies meet net-zero targets.
• Reputational value: Demonstrating climate leadership through a PPA can enhance brand equity and stakeholder trust.

PPAs are a key enabler of the green transition. By guaranteeing revenue for renewable developers, they accelerate investment in clean energy infrastructure. For corporates, PPAs offer a tangible way to decarbonise operations and supply chains, contributing to national and EU climate goals.

Centrica Energy offers a range of tailored PPA solutions, including:

• On-site PPAs: Direct supply from renewable assets located at or near your facilities.
• Off-site PPAs: Energy delivered via the grid from remote wind or solar farms.
• Virtual PPAs (vPPAs): Financial contracts that hedge energy price risk while supporting renewable generation.

Our team works closely with clients to structure PPAs that align with their risk appetite, sustainability goals, and operational needs.

With deep expertise in energy trading, risk management, and asset optimisation, we are uniquely positioned to deliver value through PPAs. We operate across all major European markets and offer end-to-end support from origination and structuring to balancing and settlement.