Power Purchase Agreements (PPAs)

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


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.


Contact our PPA team

We’re here to support your PPA solutions across our key markets.

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