Public sector funding will be channelled into UK renewable energy projects, boosting growth and driving investment in UK based renewable energy technology.
Published 15 April 2025
Last updated 15 April 2025
A new commercial agreement from Crown Commercial Service (CCS), entitled the Provision of Power Purchase Agreement (PPA), gives central government and wider public sector organisations direct access to UK-based renewable energy and competitive long-term contracts with suppliers.
Procured under PCR 2015, the innovative agreement offers a unique combination of renewable energy sourcing, long-term fixed pricing, and UK-based supply security that has never been available at this scale. This is a significant step forward in supporting public sector organisations to meet their net-zero targets while providing wider access to the market and greater budget certainty.
The agreement went live on 15 April 2025 and will be in place for 4 years.
What are Power Purchase Agreements?
Corporate PPAs are long-term power contracts between customers and suppliers that allow for the purchase of agreed volumes of green energy directly from renewable generators for a fixed period. Renewable generation may come from various sources, such as onshore and offshore wind turbines and solar PV farms.
John Welch, Commercial Director – Estates at Crown Commercial Service, explains:
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.
Sustainable energy solutions with predictable, long-term pricing
Market intelligence gathered has shown the need for CCS customers to have access to greener energy with a clear, concise route to market. This new agreement gives CCS customers and the wider public sector direct access to green electricity with price certainty, protecting them from market volatility while accelerating progress towards net zero targets.
The agreement creates significant value for the nation, providing energy security, economic efficiency, market innovation, and carbon reduction.
For example, by focusing on UK-based renewable assets, this agreement strengthens national energy independence, reducing our reliance on imported energy. The agreement will also support the government’s mission to make Britain a clean energy superpower. Encouraging innovation in the renewable energy sector advances the UK’s commitment to reach net zero by 2050.
As a result, customers using the new agreement will benefit from:
- access to UK-based renewable energy assets
- competitive rates
- fixed-term pricing options, allowing for more efficient budgeting and future cost estimation
- a simplified procurement process that provides access to call-off contract terms aligned with the PPA market
- support toward net zero targets
Find out more
To learn more about the new Provision of Power Purchase Agreement framework, please visit the agreement page or contact the CCS Service Desk at info@crowncommercial.gov.uk or 0345 410 2222.