What is the minimum size for a corporate PPA?

Most PPAs require annual consumption of at least 10–50 GWh, which typically suits large industrial consumers or multi-site organisations. Aggregated PPAs allow smaller buyers to participate by pooling demand. Some platforms now offer PPA access for consumption as low as 5 GWh per year.

Does a PPA make my Scope 2 emissions zero?

Under the market-based method, a PPA backed by REGOs can reduce your Scope 2 to zero for the contracted volume. Under the location-based method, the grid average factor still applies. Report both figures for transparency. The PPA provides a stronger additionality claim than a standard green tariff.

Power Purchase Agreement (PPA)

A PPA is a long-term contract between an electricity buyer and a renewable energy generator, providing the buyer with a fixed-price supply of renewable electricity and associated certificates.

What is Power Purchase Agreement (PPA)?

A Power Purchase Agreement (PPA) is typically a 10–25 year contract between a corporate buyer and a renewable energy project (wind farm, solar farm, etc.). The buyer agrees to purchase electricity at a fixed or indexed price, giving the generator revenue certainty that enables project financing. In return, the buyer receives the associated energy attribute certificates (REGOs or GOs).

Corporate PPAs come in several forms. Physical PPAs involve direct delivery of electricity. Virtual (or synthetic) PPAs are financial contracts where the buyer and generator settle on the difference between the agreed price and the market price, with the buyer receiving the certificates. Sleeved PPAs route the electricity through a licenced supplier.

PPAs offer several advantages: price certainty over the long term, a strong additionality claim (the PPA may enable a new renewable project that would not otherwise be built), and robust evidence for market-based Scope 2 reporting. However, they require significant procurement effort, long-term commitment, and may involve credit risk.

Practical Examples

A FTSE 100 company signs a 15-year virtual PPA with an offshore wind developer, locking in a fixed price of £45/MWh and receiving REGOs equivalent to 60% of its UK electricity consumption.

A university enters a sleeved PPA with a local solar farm, with electricity delivered through its existing supplier and matched to campus consumption.

A group of mid-sized companies forms an aggregated PPA consortium, combining their demand to meet the minimum volume required by a wind farm developer.

How Climatise Helps

Climatise tracks electricity from PPA sources separately in your Scope 2 calculation, applying the correct market-based emission factor and documenting the REGO retirement for audit purposes.

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