Corporate purchase power agreement
EnergyBroker’s guide to CPPAs
A corporate power purchase agreement, or CPPA, is a long-term contract under which a business agrees to buy some or all of its electricity directly from a renewable energy generator, such as a solar or wind farm (which is connected to the grid).
This differs from the traditional approach of simply buying electricity from licensed electricity suppliers. Providing a green energy supply, Corporate Power Purchase Agreements (CPPAs) are popular with organisations looking to meet climate change targets.
The process of choosing a CPPA can be complex
The wide range of CPPA options available means it makes sense to talk to the experts about your requirements first. EnergyBroker delivers an end-to-end CPPA service, to help you at every stage of the process.
If you’d like to talk to us about whether a CPPA would be a good fit for your organisation, we’d be happy to help.
Why should an Irish Business Buy Electricity Using a CPPA?
-
Cost Reduction
One of the main benefits of using a Corporate Power Purchase Agreement (CPPA) is cost reduction. By purchasing electricity from renewable energy sources, companies can reduce their energy bills over the long-term.
-
Sustainability
Using a CPPA promotes sustainability, which is an increasingly important consideration for businesses. Companies can reduce their carbon footprint and demonstrate their commitment to sustainable practices by procuring renewable energy.
-
Predictable Pricing
CPPAs offer predictable pricing, which can be a great advantage for businesses that need certainty in their budgeting. Unlike traditional energy contracts, which are subject to market fluctuations, CPPAs provide a fixed price for energy over the long-term.
-
Risk Management
By securing a CPPA, businesses can mitigate the risks associated with energy price volatility. This can help to protect their bottom line and ensure financial stability.
-
Positive Public Relations
Procuring renewable energy through a CPPA can be a great way for businesses to enhance their public image and demonstrate their commitment to sustainability. This can help to attract new customers and retain existing ones.
The concept of Corporate Power Purchase Agreements (CPPAs) has transformed the electricity generation sector, as it promotes inter-utility competition to reduce prices and increase efficiency.
CPPAs allow industrial consumers to purchase energy directly from renewable energy generators, instead of going through the traditional power distribution channels. This not only assures cheaper and more competitive rates but also provides a sustainable energy option.
CPPAs have been gaining traction across the globe as an effective tool to achieve energy sustainability objectives. The implementation of CPPAs is an essential step towards achieving a greener and more sustainable energy future.
Expect to see a significant increase in the use of CPPAs in the Irish electricity sector over the coming years. CPPAs make commercial sense for both the generator and the buyer and form part of the government’s strategy for 80% of the country’s electricity to be from renewable sources by 2030.