While working towards Net Zero remains an important goal for businesses in the cold chain sector, dealing with the growing cost of energy is unsurprisingly a more immediate aim for many.
But the two don’t have to be mutually exclusive.
“Demand from large consumers for Corporate Power Purchase Agreements (CPPAs) is booming – and this includes a number of new enquires from those operating within the cold chain sector,” explains Vish Sharma, Head of Power Purchase Agreements at npower Business Solutions (nBS).
“This is not just because they are a credible route to help a vital sector decarbonise their power supply. But from a financial perspective, a CPPA also delivers price certainty, as well as means to mitigate future price risk from a volatile energy market.”
Long-term supply with reputational benefits
For the sake of clarity, a CPPA is typically a long-term agreement made between a business and a renewable energy generator, whereby the company commits to purchasing a quantity (normally 100%) of renewably-produced power – usually from wind, solar or hydro – at a minimum or fixed price over a set timescale, typically between 10 and 15 years.
The benefits for a business include a guaranteed, secure and sustainable energy supply that’s fully traceable, whichis particularly useful for robust carbon reporting.
“Such an arrangement also demonstrates a genuine investment from a business in the clean energy economy, which can hold huge social value with customers and investors,” explains Vish. “In particular, signing contracts with additionality – that is enabling a renewable project that may not otherwise have got funding – shows a proactive contribution to supporting the UK’s net zero goals.”
From a practical perspective, if your organisation is using more than 30GWh of energy per year and you have a steady forecast of how much power you need, then a long-term CPPA could be suitable for you.
Our new guide Corporate Power Purchase Agreements: Your guide to financing a clean energy future sets out key considerations and explains how nBS can support you in exploring a CPPA for your business. Read Vish’s blog to find out more and how to download a copy.
The guide also contains a brief overview of how a large multi-site customer – who happens to operate within the cold chain sector – is utilising a CPPA to meet 40% of its annual 950GW consumption.
You’ll also find all contact details in the guide, which you can download here.
