Benefits of renewable energy power purchase agreements highlighted
Contracts used by world’s biggest companies to fix prices ‘now available at all scales’
Scottish Renewables announced today that it has released two new guides to corporate renewable energy sourcing, developed in conjunction with leading global advisor Schneider Electric Energy & Sustainability Services (ESS) and global developer Brookfield Renewable.
The guides are designed to help UK businesses benefit from renewable energy.
The world’s most iconic businesses – Microsoft, Nestle and Amazon, among many others in 75 countries – are already buying renewable energy direct from generators via power purchase agreements (PPAs).
Now UK firms at all scales can join them with similar deals, which typically fix electricity prices for more than a decade.
Scottish Renewables, Schneider Electric ESS and Brookfield Renewable developed the documents to explain the mechanics of PPAs to businesses and renewable energy generators.
Hannah Smith, Senior Policy Manager at Scottish Renewables, said: “As businesses look for certainty in this time of change, entering into a renewable energy power purchase agreement can offer a number of benefits such as locking in energy prices and increasing business sustainability.
“For the renewable energy sector too, teaming up with businesses can provide a stable buyer for power and provide a different way of building out some projects.
“While PPAs are unlikely to meet the UK’s energy needs as a whole, encouraging businesses to use more renewable energy in this way is a critical part of reducing emissions and meeting our energy and climate change targets.
“This model has seen a great deal of success in the US, and as PPAs emerge in the UK market we hope these guides will provide a useful tool to help businesses and renewable energy developers take advantage of this opportunity.”
The two guides are:
- The Benefits Explained: A Guide for Corporate Energy Buyers
- Effective Corporate Engagement: A Guide for Renewable Energy Generators
In each guide, businesses and energy generators will find definitions, considerations, recommendations and case study examples tailored specifically to support their respective efforts of achieving more sustainable operations and growing renewable energy capacity.
Annika Yule, Cleantech Client Manager at Schneider Electric, said: “The bottom line is that renewables are becoming financially attractive in the UK and around Europe.
“The affordability of technologies is driving interest in synthetic PPAs, which allow organisations to make long-lasting contributions to Europe’s renewable energy capacity and ensure stable and predictable electricity costs.
“However, alignment of stakeholders and the availability of Government incentives have been barriers to the widespread adoption of PPAs in emerging markets.
“The first steps to making such a commitment are education and connection, so we’re excited to deploy these guides with partners Scottish Renewables and Brookfield Renewable to facilitate corporate adoption of clean power.”
Ciarán O’Brien, Head of Business Development at Brookfield Renewable, UK & Ireland, said: “The benefits of PPAs for corporate energy buyers are clear but the process can be complex.
“As a global leader in renewable power we want to support businesses in making the case for renewables and these guides are another step in the right direction”.
- Both guides are available to download from the Scottish Renewables website.
Scottish Renewables is the representative body for the renewable energy sector in Scotland, working to grow a sustainable industry which delivers secure supplies of low-carbon, clean energy for heat, power and transport at the lowest possible cost. We represent around 280 organisations ranging from large suppliers, operators and manufacturers to small developers, installers and community groups, and companies right across the supply chain.
Schneider Electric Energy & Sustainability Services (ESS):
Schneider Electric ESS’ Renewables & Cleantech team is a global supplier of renewable energy and clean technology products and services for the C&I sector. For over 15 years, the team has provided unparalleled experience and expertise on strategic renewable energy procurement. ESS has advised on over 4.5 GW of wind and solar capacity and is the leader in cleantech consulting, serving more clients than any other procurement advisor worldwide.
Brookfield Renewable is a multi-technology, globally diversified, owner and operator of renewable power assets, across five complementary technologies; hydro, wind, solar, storage and distributed generation with an installed capacity of more than 17,000 MW across North America, South America, Europe and Asia.
In the U.K and Ireland Brookfield Renewable’s onshore wind business consists of more than 400 MW of operating wind capacity across 24 wind farms on the island of Ireland, as well as significant wind development pipelines in Ireland and Scotland.
