With the UK’s Net Zero target drawing ever closer and growing numbers of organisations making the switch to renewable energy, the pressure for energy intensive businesses to succeed in their own renewable energy strategies is increasing.
While there are many different options out there for businesses to achieve their renewable energy goals – such as installing their own renewable technologies – Power Purchase Agreements (or renewable PPAs) are a powerful, beneficial, and increasingly popular asset to include in your business’s strategy.
Below, we’ve explored some of the most popular renewable energy goals for businesses, and how renewable PPAs will help you to achieve them.
A renewable PPA will help your business to achieve the following renewable energy goals:
Goal 1: Making the switch from fossil fuels to renewable energy sources
In the first instance, sourcing some or all of your energy from a renewable site, such as a solar or wind farm, will reduce your reliance on fossil fuels – which is precisely what a PPA will set out to help your business achieve.
More specifically, a ‘sleeved’ Corporate PPA enables you to purchase power from one or more renewable energy assets for all or a proportion of consumption across your business, whilst with a Private Wire PPA, the renewable energy generated from a directly connected generation site will go directly to your premises
Goal 2: Contributing to the development of renewable energy infrastructure
Renewable energy sites, such as solar and wind farms, require significant financial investment to be constructed. Although it might be considered a more unusual or indirect means of reaching your business’s renewable energy goals, there’s much to be said for investing in renewable energy developments.
This can be done in several ways; for example, by developing your own renewable energy site on your premises, or becoming an equity investor in a renewable site or company.
Renewable PPAs also provide this opportunity for businesses to contribute towards new renewable energy, but without the need for any up-front investment. In signing a PPA your business, through its commitment to purchasing electricity at an agreed price, will help to underpin the finance of renewable capacity, and subsequently increase renewable energy generation to the grid – often referred to as additionality.
A PPA also comes with the added benefit of having access to the power generated from the renewable site you’re committed to.
Goal 3: Ensuring the longevity of your renewable energy strategy
Once a renewable energy strategy is implemented, it’s also key to ensure that it lasts, and creates a long-term impact. PPAs typically last ten years or more, meaning that you’ll have access to renewable energy and reap the rewards for the long term.
What’s more, a PPA will protect your business from the volatility of the electricity market. While this does not guarantee your business will make any financial savings, it can provide a level of stability around electricity costs which can otherwise be highly exposed to global energy prices.
Considering a PPA as part of your renewable energy strategy?
Our brochure details how you can achieve Net Zero through a PPA, the different kinds of PPAs we offer, and how this works. You can also find out more about PPAs and how the PPA team at Innova work with Energy Buyers on our website, or by getting in touch with us!
Download the brochure
Author: Andy Peyman, Head of Energy Sales