UK’s first co-operative PPA
07 December 2021
- Co-op Power tenders aggregated Power Purchase Agreement through Zeigo Platform.
- The Co-op as the lead buyer, together with two of Co-op Power’s customers, brings the UK’s first ‘Co-operative’ PPA onto Zeigo's digital platform to bid for a joint PPA tender to tackle their Scope 3 emissions.
- The Zeigo PPA platform aggregates energy off-takers to democratise access to PPA procurement.
Co-op Power has partnered with Zeigo to tender 100GWh per annum for a ‘Co-operative’ PPA - the equivalent of powering over 32,000 homes per year.
The Co-op is leading the way in procuring renewable energy having been among the first to develop its own projects. The group now buys energy directly from seven onshore wind and solar PV projects under long term PPA. Co-op Power is pioneering a digital procurement process to secure clean energy options for its network.
Michael Mahoney, Energy Procurement Manager, at Co-op Power, said: “It is vital that we continue to work with other businesses to reduce costs and reduce carbon, we know from discussions with our own supply chain that 60% believe they don’t have the resource to reach net zero alone.
“Combining buying power to demand better value has always been at the heart of the Co-op movement. So, we’re pleased to be bringing our customer with us onto Zeigo's platform for this joint PPA, which will help us to tackle our Scope 3 emissions and achieve Net Zero.”
As part of this structure, which is first of its kind in the UK, the Co-op will be the anchor tenant, off-taking majority of the volume. This will help open this avenue to businesses that otherwise might not have the energy requirements to do this on their own, into impactful, traceable renewable energy agreements directly with generators.
Aggregation is crucial in democratising the market and helping companies reduce their dependence on fossil fuels whilst also helping them to reach the objectives of the Paris Agreement. It also contributes to achieving SDG7 (specifically Target 7.2) by increasing the share of renewable energy.
Zeigo has built the first-ever Aggregated PPA platform which facilitates the grouping of corporations looking to aggregate energy demand and form buying groups to sign a PPA, directly contributing towards a cleaner energy grid.
Juan Pablo Cerda, CEO of Zeigo, said: “For many companies, the biggest share of their greenhouse gas (GHG) emissions and cost reduction opportunities lie outside their own operations. Corporates with large supply chains can use this approach to ensure they run on renewable energy and reduce their Scope 3 emissions.”
Zeigo is trailblazing procurement for Aggregated PPAs, a key factor in achieving Net Zero for all organisations. Digitising the procurement process facilitates more sustainable procurement, standardises contract processes, and ensures that emissions data from suppliers is being tracked and reported.
About Zeigo About Zeigo – www.zeigo.com
Set up in 2018, Zeigo is an energy technology business that has developed a high-tech platform that connects corporate energy buyers (private and public sector) with renewable energy generators and suppliers, to cut through the complexities of clean power procurement and help energy buyers source renewables from around the world.
The London based startup has earned awards from Telca, Business Green, Solar Impulse Solutions, and the Energy Managers Association. Its business partners include DLA Piper and Bryan Cave Leighton Paisner, and its customers include CBRE, Network Rail and Vodafone.
Zeigo’s platform integrates machine learning algorithms to advance the corporate process of contracting clean energy and includes a PPA marketplace, digital energy portfolio manager, automated tender process, access to forward curves including comprehensive data reports, and a suite of bespoke tools including an online legal resource that will generate an automatically populated Heads of Terms.
Zeigo continues to facilitate digital energy procurement for key industry players across multiple regions. The PPA platform now hosts over 400 projects totalling around 21 GW in capacity. So far, more than 100 renewable energy developers are using the Zeigo platform to access the market, offering sellers a more transparent and efficient route to market across the UK and Europe.
For further information, please contact: Stephanie Schultz, Zeigo Marketing Communications firstname.lastname@example.org
About Co-op The Co-op is one of the world’s largest consumer co-operatives with interests across food, funerals, insurance and legal services. Owned by over 4 million UK consumers, the Co-op operates 2,600 food stores, over 800 funeral homes and provides products to over 5,100 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.
Employing over 60,000 people, the Co-op has an annual turnover of £10 billion. As well as having clear financial and operational objectives, the Co-op is a recognised leader for its social goals and community-led programmes. The Co-op exists to meet members’ needs and stand up for the things they believe in.
About Co-op Power Co-op Power is a unique energy buying group you can trust. By working together and pooling our energy buying with other organisations, we can negotiate the best value for energy, plus a wide range of fantastic terms and benefits that only a handful of companies in the UK can achieve.
Alongside substantially cheaper bills, we offer fixed and flexible contracts, fair and transparent fees, accurate billing and insightful reporting. We can help you reach your sustainability goals too, by only procuring 100% REGO certified renewable energy and advising you on ways to save energy across your operations.
For more information, visit: www.coop.co.uk/power
As part of its commitment to zero carbon, the Co-op has developed five wind farms across the UK and has already cut its direct carbon impact by 50%. Co-op has also committed to reducing its direct greenhouse gas emissions by a further 50%, and its product related emissions to 11% by 2025. Co-op Power will be looking to co-operate at scale and work together with other businesses, including their supply chain, in a bid to cut both costs and carbon.