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Case study
6 April 2023
- 250 GWh of energy from renewable sources per year
- 17 PPA counterparties proposed projects
- c.50% total volume through corporate Power Purchase Agreements (PPA)
Overview of the challenge
Our customer, a major retail chain in the UK and Ireland, plans to reach net zero emissions by 2030 for its offices and restaurants, as part of its overall net zero targets.
The retailer was already an early adopter of corporate Power Purchase Agreements (cPPAs) as part of its strategy. And, with increasingly volatile wholesale electricity prices, and sustainability becoming even more important, further investment in cPPA contracts were being considered.
The company wanted to understand how to strike a balance between increasing its renewable investment, and gaining long-term price certainty, while remaining competitive in an unpredictable market.
The company chose Mitie’s energy specialists to help it drive its energy agenda forward and mitigate the effects of market volatility.
An independent overview of the cPPA market
Mitie’s Plan Zero team helped the customer understand the current position of the cPPA market. A cPPA would allow the customer to buy zero carbon power from renewable generators directly.
Our renewable energy advisors team ran a workshop with key personnel. This provided a deep dive into market trends and set out how additional cPPAs could fit into the customer’s energy purchasing strategy.
Following the workshop, our team engaged with multiple generators to gain insight into prospective projects and provided a range of alternative options for the customer to consider. We prepared a high-impact report evaluating how these options might fit into the existing strategy from a volume, net zero and price perspective. This gave the customer the information they needed to progress to a full tender.
A clear pathway to carbon and financial goals
Our specialists evaluated over 100 unique offers, across 40 renewable generation projects, and created multiple scenarios looking at both volume coverage and price commitments. The depth and detail of the research and evaluation gave the customer a comprehensive view of potential future benefits and added weight to the business case taken to their franchisees.
We provided the customer with a clearer understanding of what is available in the market and the commercial terms they should be looking for. The scenarios generated have given their team a clear pathway to deliver both their carbon and financial goals.
Why choose Mitie?
Mitie has collaborated with the customer for over 15 years and has a strong partnership in relation to energy and sustainability. We secured the first UK cPPA, in 2008, so have a wealth of knowledge in contracts, potential partners, commercial terms and market conditions.
Get in touch to find out more
Looking for long term or renewable options? Whether you need advice on cPPAs or REGO certification, Mitie’s Plan Zero team can advise you on purchasing and executing energy contracts. We’ll help you buy green gas, or renewable power, to make sure your energy is low carbon.
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