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 as the lead buyer, together with two of Co-op Power’s customers, will use Zeigo’s digital platform to bid for a joint PPA tender to tackle their Scope 3 emissions.
Aggregation is crucial in democratising the market and helping companies to decarbonise their operations allowing smaller firms to have access to traceable renewable energy agreements directly with generators.
The Co-op already buys energy directly from seven onshore wind and solar PV projects under long term PPA but wants to help its supply chain in achieving net zero targets. As part of this structure, which Zeigo says is the 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 PPAs to businesses that otherwise might not have the energy requirements to do so on their own.
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.”
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’s Aggregated PPA platform facilitates the grouping of corporations looking to aggregate energy demand and form buying groups to sign a PPA. Digitising the procurement process, makes it sustainable, standardises contract processes, and ensures that emissions data from suppliers is being tracked and reported.