For a business to do their part in fighting climate change, it doesn’t have to cost money. It can save it. A corporate PPA is an insurance policy against the risks of fluctuating wholesale power prices.
The commercial and industrial sector accounts for two-thirds of the world’s end-of-use of electricity and as the appetite for more energy becomes stronger, the need for protection against rising energy prices becomes equally as strong.
Energy prices are estimated to rise 40-50% in the next 15 years, and this is a serious risk to business prosperity. A corporate PPA guarantees a fixed price for the duration of the contract and not only guarantees the security of supply but reduces carbon emissions as energy is sourced from the cheapest form of generation: renewables.
RES has international experience in providing corporate PPAs to global financial institutions, telecommunications companies, tech giants and more, but many businesses in the UK don’t recognise the benefits of a PPA in the same way that the likes of Google and Microsoft do.
100% of the energy that Microsoft uses is renewable and some British companies, such as AstraZeneca and Aviva, have made pledges to become 100% renewable by the 2020s, but a corporate PPA can suit organisations of all sizes and industries.
Company sustainability goals have never been more visible or noticed by consumers. Tech giants like Google and Facebook enjoy the limelight by powering their massive data farms with 100% renewable energy and consumers and competitors take notice and action. A third of consumers are more likely to engage with an organisation that turns its sustainability promises into actions and a corporate PPA is one of the fastest ways for a company to achieve its goals.
In the last 10 years, the UK has reduced its carbon emissions by around 30% and legislation like the Climate Change Act and the Paris Agreement have been instrumental in driving this reduction. However, those were acts of government and today, the need for acts of business has never been higher. The UK has a maturing renewables sector and the best wind generation in Europe, so the opportunities for corporate PPAs are plentiful. All it takes is for organisations to recognise that the cost savings are better than costing us the Earth through inaction.
Here at RES, we have reached a 1 GW milestone with CPPAs, but most of this is delivered internationally. Now is the time for UK businesses to wake-up and realise the potential these arrangements, both internally and externally.