UK Co-operatives & RWE Secure 10-Year Renewable Energy Deal

Hello, Champions of Net Zero!

In an inspiring move towards sustainability, five pioneering co-operative independent society members (ISMs) – Lincolnshire Co-op, Scotmid Co-op, East of England Co-op, Southern Co-op, and Central Co-op – have joined forces to sign a groundbreaking 10-year Corporate Power Purchase Agreement (CPPA) with RWE, the UK’s largest power generator and a global leader in renewable energy. This historic agreement is set to supply green electricity to more than 400 locations across the UK, marking a significant step in the co-operative movement’s commitment to a sustainable future.

Beginning on the 1st of April 2025, this long-term contract will provide up to 53 gigawatt hours (GWh) of renewable energy annually, enough to power a diverse range of establishments, including retail stores, funeral homes, and travel agencies. The electricity will be sourced from the London Array offshore wind farm, located in the outer Thames Estuary. This deal promises substantial savings for the five co-operatives throughout the duration of the CPPA, showcasing the financial and environmental benefits of investing in renewable energy.

The successful execution of this pioneering agreement was facilitated by Inspired PLC, the UK’s leading energy and sustainability advisor, which played a crucial role in negotiating the CPPA. Legal negotiations were expertly handled by Shoosmiths LLP. Notably, the entire process was completed in just three months, significantly shorter than the typical 18-month timeframe, underscoring the efficiency and expertise of the partnerships involved.

This agreement is not merely a contract; it represents a vital milestone in the journey of these co-operative societies towards sustainability. By securing a long-term supply of renewable energy, these five independent co-operatives are taking significant strides to reduce their carbon footprints while reinforcing their commitment to ethical business practices and environmental stewardship.

Olaf Lubenow, Head of Commodity Solutions UK, North & South Europe at RWE Supply & Trading, expressed enthusiasm for the collaboration, stating: “We are pleased to support these five independent co-ops in their ambitious climate protection targets. This agreement shows how our clean energy solutions contribute to climate protection across all sectors of the economy while ensuring cost control through long-term power pricing.”

Paul Lockwood, Head of Procurement and Net-Zero at Central Co-op, shared his excitement about the deal, stating: “At Central Co-op, our purpose is to create a sustainable society for all, and this landmark agreement is a crucial step in that journey. By securing 20% of our energy needs from renewable sources, we actively reduce our reliance on traditional energy. We are committed to becoming self-sufficient in green energy by 2030. Leading this deal on behalf of a consortium of Co-op societies, alongside RWE, Inspired, and Shoosmiths, we are proud to promote ethical and responsible energy sourcing, ensuring a sustainable future for our communities.”

Mark Smith, Chief Executive at Southern Co-op, echoed this sentiment, stating: “We’re thrilled to collaborate with other independent Co-ops on this Power Purchase Agreement. Working together enables us to benefit from clean energy, achieve cost certainty, and reduce our carbon usage while sending the important message that a greener future starts with collective action.”

Andrew Turner, Procurement and Sustainability Manager at Lincolnshire Co-op, expressed his satisfaction with the CPPA, noting: “We’re delighted to unite with fellow co-operatives in this agreement, underscoring our commitment to a sustainable future while ensuring long-term financial stability for our society. By securing clean energy at predictable rates, we are effectively reducing our carbon footprints and shielding our businesses from the volatility of electricity pricing.”

Steven Fendley, Head of Sustainability at the East of England Co-op, highlighted the importance of this partnership, stating: “We’re really pleased to have joined other co-operatives in partnering with Inspired PLC to provide low-carbon energy across our business. This move is a significant step towards reducing carbon emissions while controlling costs across our 225 branches in East Anglia.”

Craig Strachan, Chief Financial Officer at Scotmid Co-op, reinforced the collaborative spirit of the agreement, declaring: “At Scotmid, we are proud to join forces with other co-operatives through this innovative Corporate Power Purchase Agreement. This collaboration not only strengthens our commitment to sustainability but also ensures we are securing reliable, clean energy at predictable rates for the long-term benefit of our members and communities. By working together, we are making meaningful strides towards reducing our carbon footprint and contributing to the UK’s collective efforts to achieve net-zero.”

Karen Hosking, PPA Manager at Inspired, emphasised the uniqueness of this collective CPPA, stating: “We have facilitated an exceptional Corporate Power Purchase Agreement, bringing together multiple parties to achieve a common goal. Typically, such projects take 18 months to complete, but we accelerated execution to just three months, capitalising on market opportunities—a real achievement within our industry.”

She further elaborated: “By investing in this existing renewable asset, the ISMs secure traceable renewable energy on a long-term basis, support their sustainability targets, and contribute towards the UK’s net-zero journey.”

The London Array, operated by RWE, is owned by a consortium of four partners: RWE (30%), Caisse de dépôt et placement du Québec, Greencoat UK Wind PLC, and Masdar Energy UK Limited. With 175 wind turbines and an installed capacity of 630 megawatts, it was the largest offshore wind farm in the world from its commissioning in 2013 until September 2018.

Inspired PLC is dedicated to providing market-leading commercial energy and sustainability advisory services, helping clients achieve net-zero and thrive in a future low-carbon global economy. David Cockshott, Chief Commercial Officer at Inspired, reiterated this commitment, stating: “Inspired is proud to have built a long-standing partnership with ISM Co-operatives as their dedicated energy consultant. Together, we are committed to driving sustainability and transforming the lives of their members and local communities. Our comprehensive energy management services, including flexible energy buying, invoice validation, and data management, are supporting various ISM Co-operatives in their ambitious net-zero goals.”

He added, “By working together swiftly and effectively, we’ve achieved something monumental that will help each Co-operative take a significant step forward in their carbon reduction journey.”

Shoosmiths LLP, a leading law firm with over 1,500 colleagues across fourteen locations, provided the legal counsel for the negotiations. James Wood-Robertson, Head of Shoosmiths’ Energy & Infrastructure sector and PPA specialist, expressed pride in supporting the independent Co-ops in their sustainable operations, stating: “It has been a privilege to assist this group of independent Co-ops as they take this significant step towards clean, sustainable operations across hundreds of stores. Our firm is committed to helping our clients navigate the shift towards renewable energy, and we are thrilled to use our expertise in CPPAs to advance the cause for businesses like these cooperatives that shape our community.”

For over 180 years, co-operatives have championed ethical business practices, community ownership, and sustainability, adhering to the values and principles that guide their operations. This landmark renewable energy deal reinforces the co-operative movement’s long-standing commitment to fairness, environmental responsibility, and collective action.

As we look to the future, it is noteworthy that the United Nations has declared 2025 as the International Year of Co-operatives. This agreement serves as a testament to how co-operatives continue to lead by example, tackling global challenges such as climate change. By collaborating, these co-op societies are securing sustainable energy solutions that will benefit their members, customers, and communities for years to come.

In a world increasingly focused on transitioning to a low-carbon economy, this collaboration sets a precedent for how businesses can unite to drive meaningful change. Together, these co-operatives are not just addressing the pressing issue of climate change; they are paving the way for a more sustainable and equitable future.

For more information on the London Array wind farm and its contributions to renewable energy, please visit londonarray.com.

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