- Demand for renewable CPPAs is set to grow in coming years as companies seek to reduce their carbon footprint and seek budget certainty amidst volatile energy prices
- Electricity generated by wind farms will be used on-site at Wavin’s site as a key part of progressing their sustainability journey
- Leading with the first energy supplier led CPPA in Ireland.
16th November 2022:
Wavin Ireland has announced that they have signed a CPPA (Corporate Power Purchase Agreement) with Flogas Enterprise (the division of the Flogas group that supplies energy to large industrial and commercial customers). Flogas is part of DCC plc, the leading international sales, marketing, and support services group. This is the latest example of a DCC business leading their customers to net zero with renewable energy.
This is the first supplier led renewable energy CPPA in Ireland. A CPPA is a long-term contract under which a business agrees to purchase electricity directly from a renewable energy generator. Electricity generated by wind farms will be used on-site at Wavin Ireland’s site as a key part of progressing their sustainability journey.
Demand for renewable CPPAs is set to grow rapidly in Ireland over the next few years as companies look to reduce their carbon footprint and seek budget certainty given the last 12 months of extremely volatile energy prices. CPPAs are typically signed over long periods, guaranteeing both our partner – the renewable generator – and corporate consumers a fixed electricity price and hedging against market risks.
At Flogas Enterprise we have developed a simple approach to sustainability, called Carbon Kaizen; it supports our customers to take simple and continuous steps to becoming more sustainable. A CPPA is one of our Carbon Kaizen steps.
Sam Osborne, Business Development of Flogas Enterprise spoke of the new agreement, saying: “The CPPA that we have signed with Wavin Ireland signals the beginning of a new era in renewable energy supply for large users. In the current environment, having the opportunity to become more environmentally conscious and gain budget certainty is invaluable for our customers. We are delighted to be the first supplier in Ireland to sign a supplier led CPPA for our customer and we are working on many more. We have defined a CPPA structure that brings our corporate energy customers and our renewable energy off-take business together seamlessly. CPPAs provide green energy to our customers and new routes to market for our partners (the renewable developers).”
John Rowland, Operations Director at Wavin Ireland said: “We are functioning in a time when large energy users have limited hedging options. In a volatile energy market, having a fixed price for the supply of electricity through a CPPA is not only good for the environment, but it is also great for budgeting. This solution was hedged at a price that is reflective of current market price level but delivers budget certainty and sustainability benefits.”
Flogas Enterprise is leading with energy as the first supplier led CPPA to a customer in Ireland.