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.
Get market Intelligence
Get expert analysis and commentary from Daniel Starman, our Sales Energy Market Lead, and other energy professionals.
GHG Protocol consults on shift to hourly matching for Scope 2 reporting
On 20 October, the Greenhouse Gas (GHG) Protocol issued a consultation on proposed changes to Scope 2 emissions accounting. In summary, it proposes...
Consultation on next steps for the Non-Domestic smart meter rollout
The Government released a consultation on 23 October looking for views on obligations to support non-domestic smart meter uptake beyond 2025. The aim is to drive the uptake of smart meters whilst protecting consumers.
Government to directly regulate TPIs
On 23 October, the Department for Energy Security and Net Zero (DESNZ) published responses from its consultation, ‘Regulating Third-Party Intermediaries in the retail energy market’.
REMA 2025 summer update: Key reforms FAQs
The Government’s latest REMA summer update marks a pivotal moment in the UK’s electricity market reform. Having ruled out zonal pricing, the Department for Energy Security and Net Zero...
NESO forecasts BSUoS on declining trend for 2026-27
National Energy System Operator (NESO) has published its draft Balancing Service Use of Systems (BSUoS) tariffs for 2026-27. It set Tariff 7 at £14.21/MWh (April–September 2026) and Tariff 8 at £11.93/MWh (October 2026-March 2027).
LCCC bumps back nuclear RAB levy collection until 1 December
On 3 October, the Low Carbon Contracts Company (LCCC) confirmed it had pushed back the start date for revenue collection under the nuclear Regulated Asset Base (RAB).