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ENERGY MANAGEMENT & SUSTAINABILITY


Lower costs and risk with a Corporate PPA For those ready to make a longer-term commitment to carbon reduction, it may be time to consider a Corporate Power Purchase Agreement (PPA). Corporate PPAs not only have a direct, positive impact on the amount of renewable capacity on the grid, they also enable businesses to secure long-term, stable energy costs and reduce their exposure to marketplace risk.


Under a Corporate PPA, a business will receive energy from a specified renewable energy project or asset for periods of up to ten years. The arrangement guarantees investment for the generation project and a fixed energy price for the business throughout the contracted period. Our own offshore wind Corporate PPA has already provided budget certainty and more stable operating costs for Northumbrian Water through a long-term fixed price for electricity.


“Corporate PPAs not only have a


direct, positive impact on the amount of renewable capacity on the grid,


they also enable businesses to secure long-term, stable energy costs.”


T ZERO ne if we are to reach our nation’s


the world’s leading companies have already formally committed to sourcing 100% of their electricity from renewable sources under the RE100 initiative.


Facilities managers who would like to demonstrate that their organisation runs on 100% green energy should actively specify renewables from their supplier. The ideal green electricity contract is one where the supplier can guarantee power which is traceable to 100% renewable generation assets, such as specific offshore windfarms. If greenhouse gas reporting is within your remit - or your customers demand it - you’ll also want to be sure that your supplier can provide you with Renewable Electricity Guarantee of Origin (REGO) certificates, to enable you to report zero scope 2 carbon emissions and allow your organisation to participate in sustainability programmes such as RE100 and the Carbon Disclosure Project.


www.tomorrowsfm.com


The company will source approximately 100 GWh a year for ten years from our Race Bank wind farm. This agreement is an important element in Northumbrian Water’s intelligent procurement strategy and will help them to achieve their carbon reduction goals. It will cover 30% of their energy requirement. The remaining 70% of their energy will also come from 100% renewable sources, delivered through the company’s existing supply contract. By adopting a blend of solutions for its total energy demand, Northumbrian Water can spread its price risk, whilst keeping a firm focus on sustainability.


If your organisation has already made the decision to develop a long-term energy strategy but is trying to decide which type of renewable technology to invest in, offshore wind is a good option - as it allows you to provide your organisation with a secure, sustainable electricity supply for a stable, competitive price.


Prepare now for future change However you decide to approach carbon reduction, it’s worth considering that the environmental responsibilities all businesses face look set to increase over the coming months and years. In addition to the new policy and regulation expected to follow the new Net Zero legislation, increased public awareness is adding pressure on all businesses to operate sustainably. The overriding message is ‘be ready’. The journey to net zero will be challenging for businesses of all types and sizes, but can also provide facilities managers with new opportunities to manage costs, boost reputation and be a part of our nation’s exciting energy transformation.


www.orstedbusiness.co.uk/en TOMORROW’S FM | 49


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