Corporate Power Purchase Agreements (CPPAs) are a key ingredient for businesses looking to strengthen both their sustainability performance and financial resilience.
Building a sustainable business isn’t just about meeting environmental targets, it’s about creating long-term resilience and financial stability. As energy markets remain volatile and the pressure to demonstrate credible sustainability grows, CPPAs remain one of the most effective tools for large businesses.
The UK Government is accelerating decarbonisation, aiming for clean power by 2030. This means doubling onshore wind capacity and tripling or quadrupling offshore wind and solar. Initiatives like the Contracts for Difference (CfD) scheme remain vital for funding renewable projects, but recent rounds have fallen short of delivering enough new capacity. To stay on track, we need additional mechanisms to drive investment – and that’s where businesses come in.
Why sustainability and price certainty matter
Energy costs have been unpredictable in recent years, making it harder for businesses to plan ahead. At the same time, stakeholders from customers to investors, expect companies to show real progress on sustainability. CPPAs address these pressures by enabling businesses to secure long term renewable energy arrangements, demonstrate credible sustainability credentials, and strengthen overall Environmental, Social, and Governance (ESG) performance to support long term brand reputation and compliance.
CPPAs: A game changer for businesses
A CPPA is a long term contract that allows businesses to buy renewable energy directly from a new build renewable site at an agreed price. CPPAs stand out because they offer:
- True additionality: Supporting the development of new renewable capacity.
- Long term cost visibility: Helping businesses plan their energy strategy with confidence.
- Enhanced ESG leadership: Demonstrating transparent carbon reduction and traceable supply.
- Scope 2 emissions reduction: One of the most effective tools for reporting zero Scope 2 emissions.
- Supply chain impact: For B2B suppliers, CPPAs help reduce Scope 3 emissions for customers.
CPPAs deliver utility scale impact, accelerating the UK’s transition to Net Zero while strengthening your organisation’s sustainability position.
The business case: Financial and strategic benefits
Alongside their sustainability impact, CPPAs deliver clear strategic and economic advantages:
- Budget stability: Enhancing cost visibility amid fluctuating wholesale markets.
- Risk management: Hedging against future price spikes and supply uncertainty.
- Economic growth: Driving renewable development and supporting job creation.
- Sustainability leadership: Showing measurable progress on emissions reduction and ESG improvement.
Despite these advantages, CPPAs currently account for less than 5 per cent of renewable generation on the grid. With many CPPA backed projects now under construction, this is set to change, but businesses must act now to lead the way.
EDF: Your ideal partner in renewable transformation
EDF is the UK’s leading renewable electricity offtaker, with the largest PPA market share under contract (Cornwall Insight). We’ve helped major corporates like Tesco, which, through CPPAs has supported the development of four wind farms and five solar farms, generating enough clean energy to power 80 supermarkets for a year.
By partnering with EDF, you’ll gain: bespoke CPPA structures tailored to your business needs; expert guidance to simplify the process; and maximum authenticity for your sustainability credentials.
Are you ready to future-proof your energy strategy?
CPPAs aren’t just an energy contract, they’re a strategic move that combines sustainability with financial certainty. Talk to the EDF team today and discover how a CPPA can help your business thrive.