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

How are UK Corporate Power Purchase Agreements changing and what does it mean for generators and
consumers of renewable electricity?

Big Zero Report 2023

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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