Power Purchase Agreement (PPA)

A Power Purchase Agreement (PPA) is a medium to long-term contractual arrangement under which a business agrees to purchase electricity generated by an energy project on agreed commercial terms.

A PPA enables organisations in the UK to secure renewable electricity at a pre-agreed price and structure, supporting energy cost certainty and long-term procurement planning. Depending on the structure of the agreement, electricity may be sourced from either operational assets or new build renewable projects.

For businesses, a PPA provides a credible and transparent mechanism to support carbon reduction commitments and demonstrate climate leadership. For generators, it offers revenue certainty and portfolio stability. Where the PPA partially or wholly supports new build projects, it may contribute directly to enabling investment in additional renewable capacity. In the case of operational projects, revenues support the continued operation of existing assets and support capital being reinvested into the development and construction of new renewable projects.

By aligning corporate demand with renewable generation, PPAs play an important role in expanding renewable energy capacity and supporting the UK’s transition to a low-carbon energy system, while delivering long-term value to both parties.

Facts & Figures

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Number of PPAs signed in 2025

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Contract volume signed in 2025

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installed renewables capacity

Some of Our Success Stories in the UK

  • Partnering with RWE to supply clean power for the UK’s largest water provider.

    132 GWh

    5 years

    Camster onshore wind farm

    Supply per year

    Duration

    Supply from

    In December 2025, RWE signed a five-year Power Purchase Agreement with Thames Water, the UK’s largest water company serving 16 million customers. Under this deal, RWE will supply 132 GWh of clean electricity annually from its Camster onshore wind farm in Caithness, Scotland. This renewable energy will cover up to 15% of Thames Water’s essential services, helping the utility reduce emissions and manage energy costs in a volatile market.

    A winding road through a grassy landscape, with multiple wind turbines in the background under a cloudy sky.

    Camster onshore wind farm

    RWE Image

    “Our purpose is to deliver life's essential service, so our customers, communities and the environment can thrive. We´re committed to reducing our greenhouse gas emissions and transforming the way we generate, purchase and use energy. It takes a significant amount of energy to keep taps flowing and toilets flushing, and energy is one of our greatest costs. Power Purchase Agreements are a mechanism which allow us to buy renewable energy at a fixed cost for a sustained period of time. This agreement will help us manage future planning for energy costs.”

    Xiang Cheng, Head of Energy and Carbon at Thames Water

  • Multiple PPAs with UK co-operatives, bringing renewable energy into everyday life.


    53 GWh

    10 years

    London Array offshore wind farm

    Supply per year

    Duration

    Supply from

    Five UK Co-operatives – A Landmark 10-Year Agreement

    In April 2025, RWE partnered with five independent retail co-operatives—Central Co-op, Lincolnshire Co-op, Scotmid Co-op, East of England Co-op, and Southern Co-op—to sign a 10-year Corporate PPA.

    This agreement will deliver 53 GWh of green electricity annually to over 400 locations, including food stores, funeral homes, and travel agencies. The power comes from the London Array offshore wind farm, one of the world’s largest, with 175 turbines and 630 MW capacity.

    A serene sunset over the ocean with numerous wind turbines silhouetted against a colourful sky.

    London Array offshore wind farm

    RWE Image

    “At Co-op, we’re delighted to announce this further Power Purchase Agreement signing, as we continue to strengthen our energy purchasing strategy by making impactful changes across our business. For the sake of people and planet, it’s vital that collectively we tackle the climate crisis. The energy transition is central to energy security and therefore national security too. That’s why we believe that every business should be playing its part to help green the grid, be that by reducing their energy demand or indeed by ensuring that renewable electricity generation forms an integral part of their energy procurement decisions.”

    Heather Thomas, Group Property & Sustainability Director at Co-op:

  • RWE powers Global Switch’s London data centre.


    70 GWh

    8 years

    Brechfa Forest West onshore wind farm

    Supply per year

    Duration

    Supply from

    RWE has signed an 8 year PPA with Global Switch, a pioneering owner, operator and developer of data centres in Europe and Asia-Pacific. From January 2026 until 2033, RWE will supply a total of 70 gigawatt hours of clean electricity per year, produced from RWE’s Brechfa Forest West onshore wind farm to power Global Switch’s data centre in the heart of London’s Docklands.

    Aerial view of wind turbines in a forested area under a blue sky with scattered clouds.

    Brechfa Forest West onshore wind farm

    RWE Image

    “Our agreement with RWE is a critical next step on our journey to purchasing 100% renewable energy by 2030, and to the setting of new standards for what a sustainable, environmentally-conscious data centre can look like. It’s an agreement that brings together the forests of Wales and the most powerful, most advanced AI and high performance compute deployments in the world.”

    Peter Domeney, COO at Global Switch

  • Green electricity from RWE for British Lidl supermarkets


    100 GWh

    5 years

    Gwynt y Môr offshore wind farm

    Supply per year

    Duration

    Supply from

    RWE has signed a Power Purchase Agreement (PPA) with the discount supermarket Lidl GB. The five-year agreement, which has already begun, covers an annual electricity supply of 100 gigawatt hours (GWh). This accounts for just over 15% of Lidl GB’s national electricity requirements. The electricity will be generated by RWE’s Gwynt y Môr offshore wind farm, which is located in the Irish Sea.

    Aerial view of wind turbines in the ocean, with reflections on the water and a clear sky in the background.

    Gwynt y Môr offshore wind farm


UK Commodity Solutions Products

RWE’s UK Commodity Solutions team focuses on Power Purchase Agreements that support the delivery of renewable electricity to businesses across the UK.

The video highlights a broad PPA offering, from standard structures to innovative baseload PPAs that remove the need for imbalance and firming partners, with flexible tenors and pricing options designed to support both development and operational renewable assets while contributing to climate neutrality goals.

To learn more, reach out to us by using the contact form below.


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Explore PPAs beyond the UK

Discover more about Power Purchase Agreements and RWE’s PPA activities across different regions.

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