Q&A on CPPA’s

Corporate Power Purchase Agreements (CPPA) – Power in companies’ hands.

Why are businesses increasingly interested in Corporate Power Purchase Agreements (CPPAs)? Or alternatively Why should businesses pay more attention to Corporate Power Purchase Agreements (CPPAs)?

With unprecedented volatility in energy prices and increased commitment to ambitious sustainability targets, many companies have started paying close attention to Corporate Power Purchase Agreements (CPPAs). These agreements between producers and consumers secure high-quality green energy for the long-term at a stable price.

How is the European CPPA market performing, and what is driving growth in Ireland?

Despite a temporary slowdown in early 2025 due to market realignment calibration and falling spot electricity prices, the European CPPA market has established strong foundations for long-term growth and experienced record activity in previous years. Markets such as Spain, Germany and UK have been leading the way. Ireland is also experiencing strong growth in CPPAs, driven by corporate sustainability goals, volatile energy prices, and government climate action targets. The Irish government has set a target for CPPAs to account for 15% of electricity demand by 2030. 

What is a Corporate Power Purchase Agreement (CPPA)?

A CPPA is a contractual arrangement between a business and a renewable energy generator, such as a solar or wind farm. Through this agreement, businesses commit to purchasing electricity directly from renewable sources for a fixed term at a predetermined price. This empowers businesses to support renewable energy projects while benefiting from stable energy costs and demonstrating environmental leadership.

What are the key benefits of entering into a CPPA?

By entering a CPPA, businesses can not only reduce their carbon footprint but also secure reliable and cost-effective renewable energy sources.

How does Flogas support businesses in accessing renewable energy through CPPAs?

Flogas Enterprise has been at the forefront of facilitating renewable energy adoption through Power Purchase Agreements (PPAs) across the Republic of Ireland (ROI) and Northern Ireland (NI). With a dedicated renewables team and a robust portfolio of PPAs with independent developers, Flogas Enterprise offers businesses a direct pathway to renewable energy procurement.

What role does Flogas play in the CPPA ecosystem?

Effectively, Flogas Enterprise acts as a renewable energy matchmaker, connecting businesses with renewable energy sources through tailored CPPAs. CPPAs allow businesses to gain access to competitively priced green energy solutions aligned with their sustainability objectives for an agreed period.

How is Flogas making CPPAs more accessible to a wider range of businesses?

Flogas Enterprise have not only aligned individual corporate customers to individual renewable energy wind and solar sources but have also implemented Ireland’s first multi-buyer CPPA in 2025 with 14 separate companies sharing the allocation of one renewable energy project. This approach is in line with our ethos of driving Ireland’s firsts in the renewable energy space and in line with our view that CPPAs should not just be the domain of the very large corporate energy users. We see this as the democratisation of the CPPA industry and the opening of CPPAs to corporate energy users of varying sizes.

Types of CPPA available in the marketplace.

Sleeved CPPA
This is the more common CPPA approach and involves the CPPA provider also supplying the electricity to the corporate customer site and is a product known as a “Physical Sleeved Corporate PPA”. 

Both the Corporate Buyer and Renewable Producer contract with Flogas Enterprise Solutions (FES) in “back-to-back” contracts. The PPA is bundled into the standard electricity contract of the user.

Financial CPPA

A financial CPPA is a swap of monies between a buyer and seller of renewable energy directly. Ownership of the electricity is never transferred to the corporate user formally, but the corporate user retains the green rights for the electricity produced. Financial CPPAs can be agreed direct between producer and end user or through a provider such as Flogas Enterprise acting as an intermediary.

What is next for CPPA? 

Hourly Matching for CPPA’s

Hourly matching for CPPAs, CPPA hourly matching is not commonplace in Ireland as yet, other European markets have moved in this direction, and we expect that Ireland will follow this path and will be underpinned by legalisation in coming years. CPPA hourly matching in Ireland involves Corporate Power Purchase Agreements (CPPAs) using technology to match a company's electricity consumption with renewable energy generation on an hour-by-hour basis, moving beyond annual matching to achieve 24/7 Carbon goals. This level of real- time transparency will become more commonplace in Ireland over the coming years and will be a key requirement for all CPPA customers and solution providers. 

How is Flogas preparing customers for hourly matching CPPAs?

Flogas hasve been involved in trials of hourly matching and can provide this solution to our enterprise customers when required. We see this as part of our innovation and evolving solution offering to customers.

What does the future hold for the CPPA market?

The CPPA market is set for further growth over the coming years as it transitions from a niche solution for large multinationals to a mainstream energy procurement strategy for businesses of various sizes, playing a critical role in the global energy transition to net-zero. 

What role will Flogas continue to play in the CPPA market in Ireland?

Flogas Enterprise are proud to be playing a strong role in developing the CPPA market in Ireland and will continue to help our customers find innovative and creative solutions to meet their decarbonisation goals.