Rethinking Access to Clean Energy
- lauradelooze
- Sep 1
- 3 min read

Why Flexible CPPAs and Smarter Credit Solutions Could Unlock the Next Phase of the UK’s Net Zero Transition.
The UK is accelerating its shift towards a low-carbon energy system. But as demand for traceable renewable electricity rises, so does the complexity of accessing it. For many organisations, the barriers are less about ambition and more about availability.
The Clean Energy Access Gap
Whilst Corporate Power Purchase Agreements (CPPAs) remain a powerful tool employed by businesses to decarbonise, conventional CPPA models often cater only to those organisations with investment grade credit ratings, large energy demands and the capacity to commit to long-term contracts. This leaves many forward-thinking businesses unable to participate.
Meanwhile, renewable energy developers face parallel challenges. They typically rely on long-term offtake agreements to secure project financing, manage market risk and secure timely grid connection. But when buyers fall short of conventional criteria, projects stall. This mismatch, between high demand and limited access, slows progress for both sides of the renewable energy industry.
Complexity vs. Progress
In sectors with fragmented energy use, decentralised operations or weaker credit profiles, accessing renewable electricity remains a struggle. Generators seek certainty. Buyers want cost predictability and carbon reduction. But the system’s rigidity creates friction and fragmentation in a market that should be moving towards seamless facilitation.
So what would it take to unlock progress?
Recurring challenges with conventional models and mechanisms suggest that greater flexibility, not more complexity, could be the key to scale for business energy users of all sizes.
1. Credit Innovation
Traditional forms of credit support are a blunt tool. Generators will typically require cash collateral or a bank guarantee / Letter of Credit amounting to 24 months’ forecast output at the purchase price. However, tying up cash for most organisations is unviable relative to their working capital constraints and opportunity cost. However, there are signs of increasing Generator flexibility around the credit conundrum through their being able to support shorter term tenors on existing operational assets. In addition, there is a trend emerging of Generators realising that they need to be accepting of some credit risk exposure if they want the benefit of known fixed pricing for predictable revenue as this is pivotal in securing debt finance for future investment. Price certainty can be achieved when contracting with a corporate buyer whereas this is not guaranteed via a ‘route to market’ PPA where Change of Law contractual clauses are regularly exercised that can impact price and create revenue uncertainty.
2. Aggregation and Collaboration
The aggregation of demand customer volumes can offer a path forward for organisations that are unable to meet CPPA thresholds and / or satisfy credit requirements alone. By forming supply contract consortiums (i.e. sustainable baskets), businesses can combine volume, share risk and circumvent barriers for entry, making renewable energy viable and accessible for buyers. It’s a shift that benefits both commercial generators and corporate consumers alike.
3. Phased Transition Planning
Whilst not every organisation can switch to renewable business energy overnight, a phased rollout, starting with high-usage or high-profile sites, can align sustainability with commercial priorities. This approach gives businesses a realistic, strategic path to net zero.
4. Bilateral Support and Sleeving Services
Even where direct agreements are feasible for corporates that either have minimum demand requirements and / or requisite covenant strength, having the financial capability to be the contractual party to a CPPA still doesn’t guarantee access to the renewable power. Corporate consumers and Generators often overlook the importance of the licensed supplier in facilitating the CPPA and integrating the renewable energy into a supply position. Buyers cannot fulfil many of their contractual obligations to the Generator without the co-operation of the supplier and yet through the process of sub-contracting these obligations, the buyer will seek indemnities from the supplier aligned to the liability regime within the PPA that the supplier had no part in negotiating. Certain suppliers are therefore averse to sleeving renewable energy through independent generators into customer supply positions.
5. Managing Surplus for System Resilience
Surplus generation doesn’t have to be a challenge. Smarter routes to market, such as the supplier providing a volume shaping service or organisations investing in a BESS installation (Battery Energy Storage System), allow for greater returns, less waste, and a more stable, resilient renewable energy system.
This adaptability is especially vital as the utilisation of variable forms of generation sources such as onshore wind and solar PV continues to rise.
Reframing the Challenge
The Net Zero transition isn’t just about new technologies or policies - it’s about rethinking the frameworks that shape how renewable electricity is integrated into the retail market and building a more inclusive market for more participants.
Progress cannot be utopian, but renewable energy does need to become accessible to more corporate organisations.
Find out more about how we help our customers unlock access to renewable energy solutions here.
Comments