Renewable
CPPAs
Choose your generation partner
A Corporate Power Purchase Agreement (CPPA) acts as a means of connecting the power your organisation consumes to a specific renewable power generator. This can relate to an existing or future renewable generation project.
Why Drax?
At Drax, we buy renewable electricity from around 2,300 generators and have our own renewable generation assets too. This means we’re well-placed to identify a generator that’s both close to you and using the technology type you want to support.
As a licensed electricity supplier, Drax can readily facilitate your Corporate Power Purchase Agreement journey – including registration, balancing when consumption and supply aren’t in step, and settlement. It’s also possible for us to ‘sleeve’ power into your existing contractual arrangements if required.
We can structure the options over the long-term or short-term, depending on your appetite. Shorter-term arrangements might embrace the output from our Galloway hydro asset in south-west Scotland.
Benefits of a Drax CPPA
A CPPA pinpoints the source of your energy and offers your stakeholders a tangible sign of your Environmental, Social and Governance (ESG) commitment to sustainability. Other benefits include:
More power, less risk
We’ll set up a CPPA with one of our generation partners.
Durations of 10-15 years help you confidently manage power price risk.
Added brand value
A CPPA can improve your environmental credentials.
It also helps drive the UK’s renewable energy industry to new levels.
Generator advantages
CPPAs provide regular income over the long-term.
They may also help unlock financing that contributes to developing UK-wide renewable projects.
CPPA types
You’ll need to decide early in the process which renewable generation technology you want to support, as well as which type of Corporate Power Purchase Agreements to adopt:
Direct
The generator’s renewable asset is on (or sufficiently near) your site to allow you to buy directly, so you bypass the grid and achieve savings on third party costs.
Indirect
Also known as ‘buy as produced’, the generator feeds renewable power into the grid, which the energy supplier buys before allocating you the same amount.
Synthetic/Virtual
The generator feeds the grid, but you don’t necessarily take delivery of the power.
Sound good?
Connect your business to a specific renewable power generator.
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