New Green Energy Deal Ensures Price Stability for UK Public Sector

Hello, Champions of Net Zero!

In an exciting development for the UK’s journey towards sustainability, public sector funding is set to invigorate renewable energy projects across the nation. A newly established commercial agreement from the Crown Commercial Service (CCS) aims to bolster growth and attract investment in UK-based renewable energy technologies.

The agreement, known as the Provision of Power Purchase Agreement (PPA), offers central government and wider public sector organisations direct access to competitively priced, long-term contracts with renewable energy suppliers situated within the UK. This initiative not only facilitates the procurement of green energy but also plays a pivotal role in achieving net-zero targets for public sector entities.

Launched on 15 April 2025, this innovative agreement will remain in effect for the next four years, marking a significant leap forward in the quest for sustainable energy solutions. By providing a unique combination of renewable energy sourcing, long-term fixed pricing, and robust supply security, the PPA stands out as a game-changer for public sector organisations striving to align with governmental sustainability goals.

Understanding Power Purchase Agreements

At the heart of this initiative are Power Purchase Agreements (PPAs), which are long-term contracts between buyers and suppliers that enable the purchase of designated volumes of renewable energy directly from green generators for a fixed duration. These renewable energy sources may include a variety of options, such as onshore and offshore wind farms and solar photovoltaic (PV) installations.

John Welch, the Commercial Director – Estates at Crown Commercial Service, emphasises the significance of this new agreement, stating:

“This new agreement represents an important step forward in our commitment to supporting public sector organisations in meeting their sustainability goals while securing predictable energy costs. By enabling access to a UK-based renewable energy supply through long-term contracts, we’re helping the public sector reduce its environmental impact and contribute to the government’s net-zero ambitions.”

Benefits of Sustainable Energy Solutions with Predictable Pricing

Market intelligence has revealed a pressing need for CCS customers to access greener energy through a clear and straightforward route to market. This innovative agreement provides CCS customers and the broader public sector with direct access to green electricity, ensuring price certainty. This feature is particularly crucial in shielding organisations from the unpredictable fluctuations of the energy market while propelling them towards their net-zero objectives.

The PPA agreement is poised to generate significant value for the nation by enhancing energy security, promoting economic efficiency, encouraging market innovation, and facilitating carbon reduction. By prioritising UK-based renewable assets, this initiative fortifies national energy independence, thus decreasing reliance on imported energy sources. Furthermore, it aligns seamlessly with the government’s mission to transform Britain into a clean energy superpower.

Encouraging innovation in the renewable energy sector is vital in advancing the UK’s commitment to achieving net zero by 2050. Consequently, organisations that take advantage of this new agreement will benefit from several key features:

• Access to UK-based renewable energy assets
• Competitive rates for energy procurement
• Fixed-term pricing options that enable better budgeting and future cost estimation
• A streamlined procurement process that provides access to call-off contract terms in line with the PPA market
• Support in achieving net-zero targets

Discover More

For those interested in delving deeper into the new Provision of Power Purchase Agreement framework, further information is available on the agreement page. Alternatively, you can reach out to the CCS Service Desk at info@crowncommercial.gov.uk or call them at 0345 410 2222 for assistance.

This landmark initiative represents a promising step forward in the UK’s renewable energy landscape, facilitating public sector organisations in their efforts to contribute to a more sustainable future. As we continue to champion the transition to net zero, the collaboration between public sector bodies and renewable energy suppliers will prove essential in the collective journey towards a cleaner, greener Britain.

Stay tuned to the Net Zero News Network for more updates on renewable energy initiatives and the ongoing efforts to achieve a sustainable future for all.