Corporate PPAs

CMS helped to create the first true Corporate PPAs (“CPPAs”) in Europe. These CPPAs provided long term bankable revenue streams for new-build project financed renewables projects, back to backed with utility PPAs, while helping Corporate offtakers achieve their environmental and cost predictability objectives. CMS has continued to shape the approach and market for Corporate PPAs both in Europe and across other emerging markets for these products. CMS has been involved in introducing virtual/synthetic CPPAs to new markets, helping to shape industry and legal frameworks to facilitate CPPAs, integrating CPPAs into wider Corporate Net Zero and commercial strategies. We have helped to develop standard forms for organisations such as EFET, as well as evolving the structure of CPPA documents to deal with different technologies, tenors, shape and volume (or volume weighted pricing), cap and floor arrangements, stacked agreements, multi-seller and multi-buyer arrangements, net metering structures and parallel balancing/hedging arrangements among others.

We also advise clients on power purchase agreements of all types, whether involving government or public procurement of IPPs or general private PPAs for merchant projects, as well as those involving trading parties, embedded generation or private wire connections and across all types of generation.  We also advise on trading agreements, such as GTMAs, ISDAs and FEMAs, and framework agreements (such as those between wholesale traders and suppliers or generators).   

Selected relevant experience includes advising:

  • Large volume CPPAs: GE Energy Financial Services and Green Investment Group as joint sponsors on the acquisition and project financing of the 650MW Markbygden ETT onshore wind farm in Northern Sweden with a 9-year fixed volume corporate PPA with Norsk Hydro, which is the largest wind CPPA in the world.
  • Subsidy free arrangements: Encavis/SolarCentury on its ISDA based Talayuela PV 300MWp 10-year PPA in Spain, which is the largest solar park in Europe backed by a long term unsubsidised PPA, as well as with a large multinational technology company in relation to power produced from the La Cabrera 200MW PV portfolio in southern Spain.
  • FOAK virtual CPPA: Signify on its first corporate PPAs in Poland negotiated as part of Green Investment Group acquisition of the 42MW Kisielice wind farm in Poland.
  • Lender perspective: The lenders in relation to the financing of an onshore wind farm (235MW) in the Nordics, including in relation to a corporate PPA that supported the project financing.
  • Dutch CPPA: A global technology company in relation to a corporate PPA with the 180MW Wieringermeer onshore wind farm in the Netherlands.
  • Utility CPPA offtaker: A water utility which is the largest electricity consumer in the relevant country on flexible pricing long term electricity supply agreements which include the ability to “sleeve” the prices achieved under PPAs or GTMAs between the Water Utility’s electricity supplier and third party generators and also “back to back PPA” scenarios between all three parties.
  • Consumer products CPPA offtaker: McDonald’s Restaurants on ‘direct’ long-term PPAs (as electricity offtaker) with Energiekontor UK (a generator) in respect of the Hyndburn onshore wind farm (24.60 MW) and Withernwick onshore wind farm (18.45 MW), which provided the basis for the generator to secure long-term project finance debt as well as a number of further CPPAs.
  • Biomass CPPA: Alpha Real Capital on long-term PPAs to sell electricity and clean energy certificates to several corporate offtakers from a new biomass plant.
  • Tech company CPPA offtaker: Luxcara on long-term corporate PPAs with Facebook and other corporates for 100% of the output and environmental (green) attributes of three contiguous wind projects (Gravdal, Skinansfjellet and Eikeland-Steinsland) in southwest Norway. The projects, known collectively as the Bjerkreim cluster, have a capacity of 294MW.
  • Wind CPPA: Aviva Investors in relation to corporate PPAs (one with HSBC and one with The Co-op) in relation to two UK onshore wind farms.
  • Telecoms CPPA offtaker: A telecoms company on the negotiation of four direct PPAs (two wind (Stroupster (29.9MW) and Mynydd Bwllfa (22.5MW)) and two solar (Great Glenham (19.5MWp) and Supernova (18.5MWp)) project financed projects) and the corresponding back to back arrangements with Npower.

Key contacts

Contact
Picture of Munir Hassan
Munir Hassan
Partner
Head of the CMS Energy & Climate Change Group