Monday 29 March 2021

‘PPAs are a great way to both secure a clean energy supply and support the UK’s renewable capacity’

‘PPAs are a great way to both secure a clean energy supply and support the UK’s renewable capacity’

Power Purchase Agreements (PPAs) are a great way of not only securing power but also helping to establish and increase the UK's total renewable capacity.

That was the suggestion from Nigel Holden, Head of Co-op Power, who along with Energy Procurement & Risk Manager Michael Mahoney, spoke to future Net Zero about what exactly PPAs involve, the different types available and how they can help businesses deliver their net zero ambitions.

PPAs are a type of long-term agreement in which a business signs a contract to take power from a renewable energy source, generally over a period of around 10 to 15 years.

The deal is often signed when the project that will supply the clean electricity is being built and has the benefit of helping the project developer underpin the financing of the generation source.

Co-op Power states PPAs are a viable option to help tackle the climate crisis and says they serve the dual purpose of delivering long-term sustainability goals and demonstrating commitment to the growth of renewable electricity infrastructure.

The firm warns: "Organisations that fail to invest in sustainability and carbon reduction will leave themselves at risk not only of paying higher costs in the long-term, but potentially facing backlash from their customers as environmental pressure intensifies and governments enforce new legislation."

Nigel said: "Long-term underpinning of a carbon programme and getting the procurement right is an essential first step.

"Clearly, good quality green electricity procurement counts as zero carbon from an emissions point of view, it doesn't negate you from other actions you need to take, but it's a good way of actually underpinning that programme."

To get in touch with Co-op Power for more information, you can email

Written by

Bruna Pinhoni

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