The Co-op as the lead buyer, together with two of Co-op Power’s customers, brings the UK’s first ‘Co-operative’ PPA onto Zeigo’s digital platform to bid for a joint PPA tender to tackle their Scope 3 emissions.
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 is leading the way in procuring renewable energy having been among the first to develop its own projects. The group now buys energy directly from seven onshore wind and solar PV projects under long term PPA. Co-op Power is pioneering a digital procurement process to secure clean energy options for its network.
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.”
As part of this structure, which is 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 this avenue to businesses that otherwise might not have the energy requirements to do this on their own, into impactful, traceable renewable energy agreements directly with generators.
Aggregation is crucial in democratising the market and helping companies reduce their dependence on fossil fuels whilst also helping them to reach the objectives of the Paris Agreement. It also contributes to achieving SDG7 (specifically Target 7.2) by increasing the share of renewable energy.
Zeigo has built the first-ever Aggregated PPA platform which facilitates the grouping of corporations looking to aggregate energy demand and form buying groups to sign a PPA, directly contributing towards a cleaner energy grid.
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 is trailblazing procurement for Aggregated PPAs, a key factor in achieving Net Zero for all organisations. Digitising the procurement process facilitates more sustainable procurement, standardises contract processes, and ensures that emissions data from suppliers is being tracked and reported.