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Procurement · 6 min read

Supplying The Way: making Net Zero a reality with Power Purchase Agreements

PPAs let organisations add renewable capacity without diverting capital from core operations — and hedge against a volatile market.

Supplying The Way: making Net Zero a reality with Power Purchase Agreements

The future of the low-carbon economy depends on substantial growth in renewable energy. The UK National Grid has been striving toward an electricity system entirely free of carbon emissions, and in April 2023 renewables accounted for 46% of the UK's monthly electricity generation.

To get there, renewable generation has to expand. The question is where that additional capacity comes from, and how your organisation actively participates. One viable option is to invest in your own onsite renewable project — and by entering a Power Purchase Agreement (PPA), you can do that without allocating significant funds away from core operations.

Why PPAs are a practical Net Zero solution

PPAs are increasingly favoured by large corporates, SMEs and local authorities because they provide a dependable means of decarbonising electricity use. By 2030 the UK will need to triple solar capacity to stay on track for Net Zero by 2050, and demand for long-term solar and wind PPAs is rising fast.

Three reasons to consider a PPA

  • **Protection against fluctuating energy rates.** Wind and solar require minimal maintenance once installed, so buyers get consistent, predictable costs set out upfront in the contract.
  • **Long-term deals create future value.** Unlike buying from a single local utility, PPAs open access to a much wider range of generators and let you capture the best price on the market.
  • **Speed to sustainability targets.** Onsite generation alone has a ceiling — a rooftop can only go so far. There is no cap on the renewable volume you can procure through a PPA.

How iEM360 helps

Our model is built around changes that reduce energy spend and consumption together, easing the burden through debt free, risk free, cost, carbon and energy saving measures — including our Energy as a Service subscription model.