A Corporate Power Purchase Agreement (PPA) is a long-term energy procurement contract between a business (the corporate buyer) and a renewable energy generator.
It’s a broad term that includes various forms of PPAs—physical, virtual, and others—where the defining feature is that a non-utility corporation is directly purchasing renewable energy, usually from off-site sources.
Corporate PPAs enable businesses to procure green electricity without owning renewable assets themselves. These contracts help stabilise electricity costs over a long period, typically 10–20 years, which offers financial predictability. In addition to the electricity, companies receive environmental attributes such as RECs or GoOs that contribute to their carbon reduction claims and sustainability targets.
These PPAs are beneficial for companies with ambitious net zero or Science Based Targets, especially those under pressure from investors or customers to demonstrate environmental leadership.
Ideal sectors include retail chains, tech companies, industrials, and food/beverage producers—any organisation with significant energy demand and a public-facing sustainability agenda.
Corporate PPAs can also enhance brand reputation and investor confidence while fostering innovation in the renewable energy sector.
Since these contracts often result in the construction of new renewable projects, they contribute to additionality—meaning the corporate buyer helps bring new clean energy capacity online.
Businesses without direct access to the energy markets often partner with a licensed supplier or aggregator who manages the electricity flow and regulatory obligations.
This flexibility makes Corporate PPAs a key tool in decarbonisation strategies across a wide range of industries.