What is a Corporate Power Purchase Agreement?
A Corporate Power Purchase Agreement (CPPA) is a type of long-term relationship between a corporate energy consumer (often called offtaker) and Scatec’s renewable power plant (often called generator). Typically, agreements are focused on a 10–20-year tenor signed in which a specified amount of green energy is secured at a fixed price. However, one of the key benefits of signing a CPPA with Scatec is our long-term approach towards offtakers. We offer tailored CPPAs to specific needs of our customers.
What do we offer for commercial and industrial plants?
We offer:
- Long-term partnership approach while designing CPPAs;
- Energy Attribute Certificates such as Guarantees of Origin or I-RECs (International Renewable Energy Certificates) included or excluded upon necessity;
- Exclusively newly built renewable plants tailored to offtakers’ needs;
- Contract tenors tailored to specific needs;
- Tailored pricing scheme to accommodate supply and hedging strategies.
Benefits of a CPPA with us
Financial benefits
- Reduction in energy costs over the long term;
- Predictable energy costs and budgeting, with protection against price volatility in the energy market;
- Improved access to capital through financial instruments and funding sources that require use of renewable energy.
Flexibility and scalability
We operate across 4 continents with 4.6 GW in operation and under construction across the globe with a multi-technology approach in renewables. We have projects in solar, wind, hydro and hydrogen across the globe. Our expertise and size mean that we work alongside clients to deliver what is needed for their business in a tailored approach.
Credibility
As a Norwegian renewable energy company, we have been at the forefront of development and investment in emerging economies for over a decade. We have decoded the complexity and systemised our way of working in these countries to make them our home markets. We partner with policymakers, communities, financial institutions, and local suppliers, as well as with utilities and other end consumers, to support our growth while advancing the communities we operate in. We have been awarded high scores on ESG ratings – for more information, please see ESG resources.
Climate and environmental benefits
- Contribute to reducing fossil fuel consumption and climate emissions through supporting more renewable energy generation;
- Reduce your company’s carbon footprint through a PPA with Energy Attribute Certificates;
- Ensure responsible processes for planning, construction, and operation of the power plant through Scatec’s rigorous environmental and social management system.
Social benefits
- Potential to support local communities through renewable energy development;
- Local job creation.
Governance benefits
- Demonstrating responsibility and leadership in the green transition;
- Meeting company sustainability ambitions and targets;
- Access data from the plant for use in sustainability reporting and assessments and ensure compliance with EU;
- Showing sustainability leadership improves reputation and trust in the company;
- Meet market expectations and build support from stakeholders who prioritise sustainability.
“We are excited to contribute to keeping Brazil at the forefront of providing the industrial sector with clean energy resources. Through the 20-year PPA signed with Alunorte, our Mendubim solar project also supports Hydro’s goals of reducing the greenhouse gas intensity of their operations and increasing the sustainability of aluminum production,” says Deborah Canongia, VP Business Development, Latam.
For further information, please contact:
“We are aware companies have set targets relating to renewable energy procurement, energy efficiency, or cutting greenhouse gas (GHG) emissions. As in every renewable CPPA signed, not only do we assure that sustainability related factors are met but also economic ones, such as long-term energy cost stability. However, where SCATEC differentiates itself is our ability to tailor this service and our long-term partnership mentality” Henrik Aas, VP Portfolio Management.
