Corporate power purchase agreements

A renewable electricity supply plan is a retail electricity product. A CPPA sits alongside your electricity supply contract, giving you greater choice over how your renewable electricity is sourced and enabling a closer commercial relationship with renewable generation.

A power purchase agreement (PPA) is a broad term for a commercial agreement to purchase electricity directly from a generator. The term corporate power purchase agreement (CPPA) was introduced to distinguish corporate organisations purchasing electricity for their own use from electricity retailers buying power for resale.

In practice, today, the terms PPA and CPPA are often used interchangeably.

SSE Energy Solutions offers flexible CPPA terms, typically ranging from two to ten years from existing assets. This allows organisations to align their renewable electricity procurement with their commercial objectives, appetite for risk and wider energy procurement strategy.

For comparison, new build generation or on-site solar PPAs are typically longer-term agreements of 15–25 years, reflecting the lifetime of the renewable installation and the investment required to build and operate it.

A sleeved CPPA is a type of physical CPPA in which your renewable electricity purchase agreement is integrated into your existing electricity supply contract. Your supplier manages the transfer, or "sleeving", of electricity through industry-standard mechanisms and into your supply arrangements, simplifying billing and contract management.

A physical CPPA is linked to your electricity supply arrangements. Your electricity continues to be supplied through the national grid, while the renewable electricity and associated Renewable Energy Guarantees of Origin (REGOs) are integrated into your supply contract.

A virtual CPPA is typically a financial contract for difference. Your electricity supply arrangements remain unchanged, while the CPPA settles the difference between an agreed electricity price and the wholesale market price. Virtual CPPAs can introduce additional financial reporting requirements under IFRS 9.

Your electricity procurement timeline doesn't always align with the start of a new CPPA. Whether you're bringing a new site into operation or transitioning from an existing electricity contract, SSE Energy Solutions can provide bridging supply arrangements to maintain continuity until your long-term CPPA begins.

We'll work with you to develop a procurement strategy that supports your operational timetable while providing a smooth transition to your long-term renewable electricity agreement.

Yes. Companies with advanced renewable electricity procurement strategies combine off-site CPPAs with an on-site solar PPA to help meet ambitious sustainability or net zero goals. While SSE's off-site CPPAs typically run for two to ten years, our on-site solar PPAs are generally 15–25-year agreements, reflecting the long-term investment in the solar installation.

Yes. Subject to the appropriate contractual arrangements and Renewable Energy Guarantees of Origin (REGOs), renewable electricity purchased through a CPPA can be reported as zero Scope 2 emissions using the market-based method of the Greenhouse Gas Protocol.

Half-hourly time-matched reporting compares your electricity consumption with contracted renewable electricity generation during each half-hour settlement period, providing a more detailed picture of how closely your demand aligns with renewable generation. It is an important step towards 24/7 carbon-free energy procurement and is available with selected SSE CPPA products.

Additionality refers to the extent to which your renewable electricity procurement supports the development of new renewable generation. Selected SSE CPPA products can source renewable electricity from newer generating assets, helping organisations align with evolving sustainability frameworks and voluntary initiatives such as RE100.