Drax Energy Solutions launches new CPPA sleeving service for business customers
Drax Energy Solutions (DES) has launched a new Corporate Power Purchase Agreement (CPPA) sleeving service, making it easier for business customers to access renewable electricity, manage energy costs and secure long-term price certainty.
CPPAs allow businesses to buy renewable electricity directly from a named wind or solar project at a fixed price over a number of years. They are increasingly popular with large electricity users as a way to reduce exposure to volatile energy prices while supporting sustainability and net zero ambitions.
As a leading supplier of renewable electricity and energy services to UK businesses, Drax has developed an end-to-end CPPA solution that gives customers greater flexibility in how they buy their power. Through its sleeving service, Drax enables customers to contract with independent renewable generators while Drax manages the supply, transfer and administration needed to integrate that power into their existing electricity contract.
Paul Miller, Customer Sales Director, Drax Energy Solutions, said:
“Managing energy costs over the long term is a key priority for our customers. CPPAs have become an important part of how businesses do that, and our role is to make these arrangements as simple and effective as possible.”
Rather than requiring customers to buy all of their electricity directly from Drax, the new service allows them to source power from third-party renewable generators through a CPPA. Drax then ‘sleeves’ that electricity and the associated renewable certificates into the customer’s supply contract, allowing them to directly use the renewable power they have purchased while benefiting from long-term price certainty and a more diverse energy supply.
In 2025, Drax supported two large CPPA transactions in the UK, including a five-year agreement for Thames Water, covering 132GWh of electricity each year, enough to power around 15% of its essential operations. DES is also sleeving a CPPA for Global Switch, supplying 70GWh annually and accounting for more than 35% of its electricity needs.
Callum O’Reilly, CPPA Strategic Originator at Drax Energy Solutions, said:
“These deals show how we’re helping customers turn long-term renewable power agreements into practical, working solutions. We’re focused on building tailored services that support our customers’ needs today and into the future.”
Interest in CPPAs is expected to continue growing, with the UK Government recently exploring how more businesses can access stable, predictable electricity prices through these types of agreements. Drax is continuing to invest in its CPPA capabilities as part of its wider commitment to supporting the transition to a low-carbon energy system.
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