Corporate power purchase agreement: Independent Co-ops in renewable energy drive

Central Co-op has announced that it has signed a ten-year renewable energy corporate power purchase agreement (CPPA) with energy company RWE, in partnership with four other independent UK co-operatives societies.

Lincolnshire Co-op, Scotmid Co-op, East of England Co-op and Southern Co-op have teamed up with Central Co-op for a CPPA that will result in a supply of renewable energy to over 400 co-op locations across the UK.

Starting on 1 April 2025, the long-term renewable energy contract is set to provide up to 53 gigawatt hours (GWh) of green electricity per year. The energy is sourced from the London Array offshore wind farm in the outer Thames Estuary, and the CPPA means the co-operatives will benefit from significant savings over the next decade.

Central Co-op has calculated this deal will provide 20% of its total energy needs across its diverse business operations, which includes retail and funeral services.

Inspired PLC, an energy and sustainability advisor, negotiated the CPPA on behalf of Central Co-op, while law firm Shoosmiths LLP led the legal conversations. The retailer said the deal was executed in three months, which is less than half the usual timeframe.

Paul Lockwood, head of procurement and net zero at Central Co-op, commented: “At Central Co-op, our purpose is to create a sustainable society for all, and this landmark agreement is a crucial step in that journey.

“By securing 20% of our energy needs from renewable sources, we are actively reducing our reliance on traditional energy and moving towards our ambition of becoming self-sufficient in green energy by 2030.”

Olaf Lubenow, head of commodity solutions for UK and north & south Europe at RWE Supply & Trading, added: “This agreement shows how our clean energy solutions contribute to climate protection in all areas of the economy and ensure cost control by securing a long-term power price.”

In November 2023, the Co-op Group and renewable energy provider Voltalia signed a CPPA which will see the former sourcing its electricity from the latter’s solar farm in Yorkshire from this year.

[image credit: Green Retail World]