Wednesday 9 August 2023

What’s the outlook for Corporate Power Purchase Agreements in the UK?

What’s the outlook for Corporate Power Purchase  Agreements in the UK?

A growing demand for CPPAs

We’re witnessing growing demand from organisations for CPPAs, and increased levels of interest from generators too. It’s possible this is in part due to low administrative strike prices announced under the next round (AR5) of Contracts for Difference (CfDs).

The government’s CfDs have generally been a favoured route to market for renewable technologies as the prices offered have been supportive over the longer term. That still applies but the perceived advantage of a CfD over a CPPA has certainly narrowed lately, and lower strike prices might be expected to lead to greater potential interest for CPPAs among generators.

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Written by

Drax

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