CPPAs are a popular option for businesses across numerous industries, but what benefits can they provide?
A Corporate Power Purchase Agreement – also known as a CPPA or PPA – is a specific kind of energy contract, designed for businesses who wish to purchase renewable electricity directly from a specific producer. This provides both the business customer and the producer with flexibility to fix the price you pay for that energy for a designated period of time.
These types of electricity agreements are growing in popularity across the UK, especially as businesses are hit with higher energy bills than ever before. From both a commercial and an environmental perspective, there are numerous potential benefits to be gained from CPPAs, and we’re going to take a look at some of the leading ones.
The benefits of a CPPA
CPPAs can be customised to meet your business needs
Because CPPAs are usually private, they allow you and your chosen producer to set up tailored agreements based on your requirements. This includes everything from pricing and quantity to choosing the most applicable kind of contract.
Some of the most common kind of CPPA contracts include Sleeved CPPA Contracts – where an intermediary utility company manages the transfer of money and energy to and from a renewable energy provider – and Virtual CPPA Contracts, which lets you purchase a project’s renewable energy for a pre-agreed price. Other options include Cross-Border CPPAs, Multi-Buyer CPPAs and Private-Wire CPPAs.
CPPAs provide fixed energy prices
Perhaps the most attractive advantage of a CPPA is the fixed energy price it provides, given how volatile the current market is. CPPAs set out how much electricity needs to be supplied for a fixed price over a pre-agreed period of time – usually between five and 20 years. This is substantially longer than a typical fixed energy contract, providing certainty while also investing in renewable energy.
This can make it easier to plan ahead and make business decisions based on a set budget which isn’t going to fluctuate during the duration of your contract.
Sustainability is central to CPPAs
CPPAs only ever deal with green energy, making them a useful tool for businesses looking to reducing their carbon emissions. With regulations in place and the climate crisis gaining more traction, organisations across all industries have a duty to take steps towards sustainability. Businesses are setting targets centred around achieving carbon neutrality, and CPPAs can help you towards this goal.
Responsibility and transparency
Consumers are increasingly expecting the brands they shop with to be transparent about their impact on the environment, and the action they’re taking to reduce it. Linking your electricity supply to a specific green energy producer makes your sustainability efforts more tangible, clearly demonstrating how your business is taking steps towards eco-friendliness. This can, in turn, aid your marketing efforts by appealing to your consumer’s climate concerns, and giving them peace of mind that you are a good choice of brand.
Consultiv Utilities can help you find the right fit for your energy
It’s easy to feel powerless right now about your utility prices, but there are still numerous options available to your organisation. With years of experience and market-leading expertise, Consultiv Utilities can help you explore all possibilities and find the perfect fit for your energy needs. Whether you’re looking to cut costs, go green or both, we will work with you to get to know your brand and uncover options that meet your requirements.