Is a PPA Right for Your Business?
A PPA is most relevant when electricity is a material cost line, and price volatility affects budgeting.Â
It is also relevant when sustainability reporting requires more confidence in the integrity of renewable procurement and certificate treatment. Industry bodies have noted growing end-user concern about REGO additionality and calls for greater transparency, which is one reason corporates explore CPPAs as an alternative to simple certificate-backed tariffs.Â
You should consider a PPA feasibility review with Consultiv Utilities if:
- You operate multiple sites or have a large and stable annual electricity demand.Â
- You want long-term price visibility, not just short-term contract optimisation.Â
- Your sustainability team needs credible progress for Scope 2 reporting and stakeholder scrutiny.Â
- You have internal procurement or finance governance that requires clear risk allocation and contract management plans.Â
Speak to our expert team today to book your initial consultation.Â
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PPAs for Your Business
A PPA is a practical route to procuring renewable electricity with clearer commercial terms than a standard green tariff approach. If you are weighing cost control alongside sustainability outcomes, the right PPA structure can support both.
What is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement is a long-term electricity purchase agreement between an electricity generator and a buyer.Â
In many corporate use cases, the generator is a renewable asset, and the agreement is designed to provide price certainty and a bankable route to market.
Energy market volatility and the journey to net zero have ignited renewed business interest in Corporate PPAs. PPAs can be structured in different ways depending on how electricity is delivered, who takes balancing risk, and how certificates and reporting are handled.Â
Entering a PPA without structured modelling can expose your organisation to long-term financial risk.
Corporate Power Purchase Agreements and Virtual PPAs explained
If the buyer is a business, the PPA becomes a Corporate Power Purchase Agreement (CPPA). There are multiple CPPA options, including physical CPPA models such as sleeved and unsleeved arrangements, as well as onsite or private wire structures.
A Virtual PPA (often written as VPPA) is different. It is typically a financial hedging instrument rather than a physical supply contract, with funds changing hands when the market deviates from an agreed benchmark. This structure can be attractive for organisations that want a hedge and renewable attributes, but do not want to change physical supply arrangements.
Get in touch with our team today to learn more about PPAs and whether one is the right fit for your business.
PPAs: Key Information
Timeframe:
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Long-term, between 5 and 20 years.
4 Main Types:
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Onsite
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Offsite
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Virtual
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Portfolio
Key Benefits:
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Cut your scope 2 emissions
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Demonstrate sustainability commitment
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Long-term energy price security
Download our PPA guide
Whether you are already exploring this topic or would like some
additional support, we’ve put together this useful PPA guide to help.
Power Purchase Agreements Explained | Download
Power Purchase Agreements - Download
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We consult on a wide range of Power Purchase Agreements
Book your free consultation with our PPA experts.Â
As independent energy consultants, we are here to help by providing you with the most suitable advice and solutions for your company.
How we can provide PPA support to your business
At Consultiv Utilities, our role is to provide independent, commercially driven PPA advisory support from feasibility through to long-term management.
Entering into a Power Purchase Agreement is a long-term strategic decision. It affects pricing certainty, balance sheet exposure, ESG reporting and procurement flexibility. It should not be approached as a simple supplier introduction exercise.
Why choose Consultiv Utilities for Power Purchase Agreements?
Power Purchase Agreements sit at the intersection of procurement, finance and sustainability. At Consultiv Utilities, we do not sell generation. We model risk.
Our advisory approach combines:
- Energy market expertise
- Commercial modelling capability
- Regulatory awareness
- Risk management strategy
We structure and manage Power Purchase Agreements to ensure they deliver measurable commercial value.
Whether you are considering your first Corporate Power Purchase Agreement or restructuring an existing PPA portfolio, our role is to ensure clarity, compliance and financial protection. Book your initial consultation with a member of our knowledgeable team.
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FAQs
What is a Corporate Power Purchase Agreement (CPPA)?
A CPPA is a PPA where the buyer is a business rather than a utility or trader. It is typically used to secure renewable electricity at an agreed price and term, with structure options such as sleeved, unsleeved, onsite, and private wire models.Â
What is a Virtual PPA?
A Virtual PPA is commonly a financial hedging instrument rather than a physical supply contract.Â
A Virtual PPA can involve settlement against a pricing benchmark when the market deviates, which helps some organisations hedge price risk without changing how electricity is physically supplied.Â
How long does a PPA usually last?
PPAs are often long-term and can span multi-year periods, depending on structure, asset type, and credit requirements.Â
Many PPAs commonly span 5 to 20 years, which is why governance and in-life management matter.Â
How do certificates and renewable claims work in the UK?
In the UK, the REGO scheme issues certificates demonstrating renewable electricity generation, with one REGO per MWh of eligible renewable output.Â
REGOs are primarily used for fuel mix disclosure, and organisations often care about how certificates are treated when making renewable claims.Â
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