A corporate power purchase agreement (or CPPA) is an agreement between a generator and a corporate end-user. Typically, it will set out pre-agreed volumes, contract length and price, which will be on a bespoke basis. The energy is delivered over the public network, so the negotiations are essentially about appropriately indexing the wholesale cost element of the end bill.
CPPAs are more frequently being used to support debt-financed new build subsidy-free renewables assets, in the absence of available government subsidy schemes or revenue stability mechanisms.
In this short research paper, analyst Sam Peek covers the topic of corporate power purchase agreements (CPPA), looking into deal structures and agreements, wider GB CPPA market trends, future business models, and much more.