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.
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