Ensure your company of reliable, affordable and locally produced renewable energy with a Corporate Power Purchase Agreement (CPPA)

  • 9 May 2022

As an entrepreneur or C-level manager, a key challenge is to keep an eye on cost efficiency. The share of energy in the total cost of production can be a source of worries. No activity or process can exist without it. Energy is perhaps the only factor for which “TINA” really holds.

Yet, prices and distribution become ever more constrained by a combination of economical, geopolitical and policy evolutions.

A perfect storm: energy price, supply and regulatory pressures team up

The pressure to come up with future proof energy solutions mounts. With its Green Deal, the European Union raised the bar for climate ambitions of all its member states. The European economy must be carbon neutral in 2050 and reduce emission volumes by 55% by 2030 (compared to 1990 level).

To reach these goals, a double system of Emissions Trading System (ETS) and non-ETS categories of business has been set up, roughly based on the level of energy intensity of each industry. The ETS circuit is governed by a European emission certificate market; the non-ETS policy is (to be) codified in action plans at the member state level.

Whether ETS or non-ETS, many European companies now feel they are squeezed between two dangers.

On the one hand, they need to secure a stable supply of energy at an affordable price on extremely volatile international markets.

On the other hand, they feel the regulatory pressure to switch to a carbon dioxide light or free mode of operation. The push for sustainability is often also desired by internal or external stakeholders.

The answer: locally produced renewable energy, by BEE

The Bio Energy Base reinforces Belgian Eco Energy (BEE)’s unique position as both a producer and a supplier of locally produced renewable energy. This is how price levels and continuity of supply become manageable, while you are 100% sure of green energy.

Indeed, BEE ensures every client access to Guarantee of Origin (GOs) certificates, the only credible - and lawful, for that matter - tool to support evidence of a company’s efforts to reduce CO2 emissions and to exclude greenwashing.

The bundling of energy production and distribution that is at the core of the Bio Energy base gives any type of company an extraordinary opportunity to simultaneously neutralize potential effects of energy market fluctuations and heavily reduce carbon dioxide emissions.

How: by entering into a Corporate Purchase Power Agreement (CPPA)

What is a Corporate Purchase Power Agreement (CPPA)?

With a CPPA, the provider and client agree upon a long term supply of energy at a fixed price level. Most agreements cover 5 to 15 years.

A CPPA opens up a wide range of advantages for organizations that engage in it:

  1. The CPPA ensures a stable and affordable flow of energy supply for your business, even at peak moments. When demand rises and capacity is constrained, CPPA holders needn’t worry about anything.

  2. It enables you to forecast the share of energy cost well into the future and reduces levels of uncertainty.

  3. A CPPA serves as a type of hedging against the risks of geopolitical tensions and market volatility. The CPPA is an instrument of financial stability.

  4. A CPPA is your lever to power company activity with locally produced, renewable energy from a transparent and traceable source.

  5. Whether you fall under the ETS or non-ETS scheme, the CPPA will help you meet the targets that have been set by European, federal and local governments and meet the increasingly value driven demands of partners and customers.

  6. By making this switch, your company contributes both to the strengthening of a local energy production and distribution infrastructure and to the energy transition of the economy in general. You are now a co-producer of green growth.

  7. The CPPA is attached to the GO’s. Greenwashing is impossible. This gives your company the credibility to act and communicate as a driver of the transition.

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