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.
What is a CPPA?
Why Drax?
In addition to having our own renewable generation assets, we buy renewable electricity from around 2,300 independent generators. 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. We also ‘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.
Download your guide to CPPAs
Our guide looks at how Corporate Power Purchase Agreements can help organisations with sustainability progress and financial planning. Download your copy for free below.
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:
Stabilises costs
Contracts of 5-20 years help corporates reduce their exposure to volatility in the energy markets, providing budget certainty.
Reduces risk
Linking to different technology types (e.g. solar, wind, biomass) can flatten the profile of your baseload power and dampen the impact of intermittency.
Supports the grid’s transition
A CPPA helps generators (and investors) secure funding for even more renewable energy projects – growth the grid needs to meet its 2050 targets.
Cuts emissions
CPPAs relate to renewable power and are backed by Renewable Guarantees of Origin (REGOs).
CPPA factsheets
Download our Corporate Power Purchase Agreement (CPPA) factsheets for consumers and generators below.
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:
Private wire
The generator directly supplies power to the user – usually over distances of 3km or less – and not to the grid. A licensed supplier doesn’t need to be involved.
Physical
On behalf of the user, a supplier tracks (or ‘sleeves’) generated power through the grid, creating either a ‘back-to-back’ contract with the user only, or a tripartite one with the user and generator.
Virtual
This is a financial (and therefore ‘virtual’) arrangement, whereby the user pays for the generator’s power but doesn’t take physical delivery of it.
Sound good?
Connect your business to a specific renewable power generator.
CPPA insights
Why more businesses are turning to CPPAs to manage energy risk
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Choosing the right CPPA for your organisation
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CPPA structures explained
Corporate power purchase agreements (CPPAs) can deliver financial, environmental, reputational and risk-reduction benefits. But to optimise the advantages to your organisation, you’ll need the...
CPPAs in 2035: shorter contracts, simpler structures and wider access
CPPAs look different from the agreements organisations first started signing 15 to 20 years ago. And as the market matures, it’s likely they’ll change...
Drax support Breedon Group with CPPA
Drax Energy Solutions has supported Breedon Group plc in securing a long-term renewable electricity agreement, as energy-intensive industries increasingly look to decarbonise operations.
Corporate Power Purchase Agreements - FAQs
How can a CPPA support my organisation's net zero strategy?
CPPAs help businesses source renewable electricity directly from renewable generators and receive Renewable Energy Guarantees of Origin (REGOs), which can support Scope 2 emissions reporting and wider sustainability targets.
What are REGOs and why are they important in a CPPA?
Renewable Energy Guarantees of Origin (REGOs) certify that electricity has been generated from renewable sources. Through a CPPA, organisations can receive REGOs associated with their contracted renewable generation to support environmental reporting and claims.
What is energy sleeving in a Corporate Power Purchase Agreement?
Energy sleeving is the process of transferring electricity from a renewable generator through the national grid to the end consumer, with a licensed supplier managing the associated balancing and supply arrangements.
Can a CPPA help protect my business from volatile energy prices?
Yes. Many CPPAs are structured to provide long-term pricing certainty, helping organisations forecast energy costs more accurately and reduce exposure to wholesale market fluctuations.
What types of businesses are suitable for a Corporate Power Purchase Agreement?
CPPAs are often most suitable for organisations with significant electricity consumption, sustainability commitments, and a desire to secure long-term renewable energy supply arrangements.
How do I get started with a Corporate Power Purchase Agreement?
The first step is typically to assess your electricity consumption, sustainability objectives, and procurement requirements. A CPPA provider can then help identify suitable renewable generation projects and structure an agreement that meets your needs.