Businesses unlock $14m windfall from corporate renewable PPAs

Flow Power

Thursday, 21 March, 2019


Businesses unlock $14m windfall from corporate renewable PPAs

Analysis from business energy retailer Flow Power reveals that companies signed onto its corporate renewable power purchase agreement (PPA) secured total savings of up to $14 million since the start of 2018. The analysis highlights the significant opportunity for businesses to drive down energy expenditure and benefit from the long-term nature of these contracts, which serve as a secure platform to achieve sustainability goals.

The popularity of PPAs has risen as businesses turn to these agreements to hedge against potentially volatile future energy prices. Unlike most corporate renewable PPAs, which serve as financial tools and require additional energy contracts, the Flow Power agreements allow businesses to match their load to generation from one or more renewable plants, as well as benefit from wholesale spot pricing and rates tracked against their usage.

Of its 445 MW wind and solar offering, Flow Power has allocated 204 MW to Australian businesses. This is testament to the growing awareness and appetite for these agreements in the Australian market. The remaining 241 MW could power more than 200 commercial and industrial businesses for the next 10 years.

Flow Power CEO Matthew van der Linden said, “Last year, we set a fairly ambitious target of having 10 offtake agreements and wind and solar in every state. We’re excited to say that we’ve met this goal. The savings that businesses can achieve with corporate renewable PPAs is significant and this is just the beginning. We’re looking forward to seeing these deals gain traction as the market continues to embrace them. It’s critical that we support Australia’s growing pipeline of renewable projects, and PPAs are the way to do this.”

Image credit: ©stock.adobe.com/au/natali_mis

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