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:

  • GE Energy Financial Services and Green Investment Group (GIG), part of Macquarie Group, as joint sponsors on the acquisition and project financing of the 650MW Markbygden ETT onshore wind farm in Northern Sweden where the 19-year fixed volume corporate PPA with Norsk Hydro will be the largest corporate wind energy PPA in the world.
  • 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.
  • 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.
  • Encavis/SolarCentury on a long term virtual PPA with a large multinational technology company in relation to power produced from the La Cabrera 200MW PV portfolio in southern Spain.
  • Signify on its first corporate PPAs in Poland negotiated as part of Green Investment Group acquisition of the 42MW Kisielice wind farm in Poland.
  • The lenders in relation to the financing of an onshore windfarm (235MW) in the Nordics, including in relation to a corporate PPA.
  • A global technology company in relation to a corporate PPA with the 180MW Wieringermeer onshore wind farm in the Netherlands.
  • A water utility which is a large electricity consumer 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.
  • BP on its strategic framework agreement with Amazon for up to approximately 400MW renewable electricity across various European markets, including an initial 170MW comprised of onshore wind generation capacity in Sweden and solar PV in Spain.
  • Senior lenders on the portfolio project financing of the combined 180MW Buheii, Tsyvaer and Hornamossen onshore wind projects in Sweden and Norway developed by Macquarie / GIG.
  • 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. CMS also advised on PPAs for 8.2 MW extensions to each of the projects.
  • A large corporate on corporate PPAs with Energiepark UK (a generator) in respect of the Pidsea onshore wind farm (10.2MW) and the corresponding back to back arrangements with its electricity supplier.
  • A restaurant chain on corporate PPAs in respect of the Homestead solar plant (15MW), Pingewood solar plant (15MW), Aston Clinton solar plant (20MW) and the Lynt solar plant (22.6MW).
  • Alpha Real Capital on long-term PPAs to sell electricity and clean energy certificates to several corporate offtakers from a new biomass plant.
  • Aviva Investors in relation to corporate PPAs (one with HSBC and one with The Co-op) in relation to two UK onshore wind farms.
  • Sainsbury’s on heat and electricity supply arrangements from onsite generation by an energy services company at a number of Sainsbury’s development sites in the UK.
  • Tullis Russell Papermakers in relation to the contractual arrangement for the supply of energy from the multimillion pound Biomass CHP plant constructed by RWE on Tullis Russell’s premises at Markinch. 
  • Merchant Place Corporate Finance in relation to the drafting and negotiations of a long-term PPA with a corporate offtaker and a temporary route-to-market PPA in relation to a biomass plant in Usk, South Wales.
  • The developer in relation to a corporate PPA with large pharmaceutical company in respect of renewable generation in GB.
  • A global tech company on a PPA with ENECO to source its Dutch facilities with renewable energy.
  • Capvert Energie, a generator of electricity from renewable sources, on regulation issues in setting up direct sales schemes for industrial consumers in France.
  • Sponsors (confidential and current) regarding a corporate PPA for a large onshore wind project in Finland.
  • A multinational RE100 buyer on the purchase of renewable energy certificates (RECs) from the largest solar project (up to 60MW) in Singapore from the Sunseap group.
  • Cleantech Solar Asia on a rooftop solar leasing agreement with an RE100 multinational corporation in relation to the provision of solar panels at a manufacturing facility in Malaysia.
  • Lys Energy, a regional roof top solar power solutions provider in Singapore, on various aspects of their business including power purchase agreements and financing arrangements with potential investors.
  • 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.
  • The developer of an in-development project in Finland in relation to its corporate PPA with a global technology company.
  • RWE on a sleeved PPA with a multinational drink and brewing company in relation to an operational wind project in the UK.
  • Acciona on an ISDA-based virtual PPA with multinational automotive manufacturer Brembo in relation to the 63MW Krobia I wind farm in Poland.
  • GIG on a 10-year physical PPA with food conglomerate Danone in relation to output from the Jozwin wind farm in Poland.
  • The lenders on the financing of a 50MW in-development merchant solar project in the UK supported by a CPPA with a global technology company.

Key contact

Munir Hassan
Head of the CMS Energy & Climate Change Group
T +44 20 7367 2046