Drax launches new Corporate Power Purchase Agreement product

Making the announcement, Paul Miller, Drax Energy Solutions Sales and Marketing Director, said: “At Drax Energy Solutions, we’ve seen an increase in the demand for CPPAs as organisations continue to develop their approach to engaging with the energy markets. CPPAs can bring together generators, suppliers and end users while providing price certainty and allowing organisations to support national decarbonisation goals.

However, when negotiations are lengthy and technically challenging – as often happens – businesses can be put off from starting that journey. So I’m pleased to say we’ve built a bespoke solution that makes it easier for our business customers to access this growing market.”

Here are five key reasons for choosing a CPPA from Drax:

1. Easily executable contracting structure – for simplicity and speed

Elsewhere in the market, CPPA negotiations are typically long and complex. In contrast, we simplify and accelerate the process by having pre-existing products and contract structures in place that meet the needs of all parties.

2. Price stability – for financial peace of mind

We work with generators that set a price for the lifespan of the contract. And we provide – for a fee – the balancing and shaping services that the corporate customer requires to match their consumption against that generation.

The result for both parties is predictability in both the supply of energy and its costs. Generators are assured about their income while corporates have certainty about their outgoings and security of supply. These factors help to lock both parties into the agreement. The stability also encourages the continued investment in, and development of, renewable energy projects.

3. Reliability and a range of options – for security and choice

We’re a long-established electricity supplier for UK businesses, with expertise in energy market trading, CPPA and PPA facilitation, and decarbonisation services. As a FTSE-listed business critical to the UK’s infrastructure and energy security, and with PPAs with over 2,300 generators, Drax brings the benefits of financial stability and extensive choice to our CPPA customer base.

Our CPPA product includes options for our Private matching and Sleeving services, which are available to corporate consumers and to generators. We also have a Route-to-market service for generators only. For more information, please download the appropriate information using the buttons at the foot of this page.

4. Comprehensive risk management – reducing complexity

We earn a proportion of our management fee through assessing the risk associated with each individual CPPA, and by structuring each transaction to manage that risk appropriately.

Using our expertise to manage the shaping and balancing activities associated with renewable energy supply, we reduce the operational complexity for all CPPA parties.

5. Traceable access to renewable energy – for socially responsible businesses

There are Renewable Energy Guarantees of Origin (REGOs) associated with the power that generators produce, which the corporate counterpart within a CPPA gets as part of the transaction. The purchasing business can then match these REGOs against their own consumption and Scope 2 emissions, to help achieve their sustainability and environmental targets.

To learn more about our CPPA offering, read our product factsheet for consumers or our product factsheet for generators.

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