Corporate Power Purchase Agreement (cPPA)
FAQ
Key Concepts
- SaaS – Solar as a Service (solar energy as a service, with no upfront investment)
- cPPA– corporate Power Purchase Agreement (direct corporate agreement for purchasing renewable energy from a producer)
- PV – Photovoltaic installation (photovoltaic installation)
- O&M– Operation & Maintenance (operation and maintenance of installations)
- SCADA – Real-time energy production monitoring and management system
- IFRS 16– Accounting standard defining when a contract qualifies as a lease
- PoA – Power of Attorney (power of attorney for administrative procedures)
- ESG – Environmental, Social, Governance (sustainable development and corporate responsibility)
- CSRD– Corporate Sustainability Reporting Directive (EU directive on sustainability reporting)
- GHG Protocol – international standard for greenhouse gas emissions reporting
- GO – Guarantees of Origin (GOs confirming that energy comes from renewable sources)
- IPP – Independent Power Producer (independent power producer that owns renewable energy installations)
- EFET – contract standard developed by Energy Traders Europe, widely used in European energy markets
- CfD – Contract for Difference (settlement mechanism used in virtual cPPAs)
- BESS – Battery Energy Storage System (energy storage system)
- Scope 2 – Indirect emissions from the consumption of electricity, heat or cooling
- Scope 3 – Indirect emissions generated across a company’s entire value chain, including emissions related to purchased goods and services, transportation, business travel, and the use of sold products.
- Hourly Matching – Matching energy consumption to renewable energy production within the same hour
- Additionality – a mechanism whereby the purchase of renewable energy (e.g. through a cPPA) supports the financing and construction of new renewable energy sources that would likely not have been built without the agreement, thereby increasing the share of green energy in the electricity system
- Off-site – Renewable energy installation located off the client’s premises
- On-site – Renewable energy installation located directly on the client’s premises
- Curtailment / redispatching – Temporary reduction of energy production imposed by the grid operator
cPPA Model Basics
1. What is a cPPA and how does it differ from a traditional energy purchase?
A Corporate Power Purchase Agreement (cPPA) is a long-term contract concluded directly between a renewable energy producer and a company or public institution. Volta Polska, an independent power producer (IPP) and part of the international Volta Groupe, supplies energy from its own renewable energy installations in Poland together with Guarantees of Origin (GOs) issued for each MWh by the President of URE.
Unlike standard energy contracts, a cPPA provides price stability for a period of several to over ten years and a direct link to a specific renewable energy installation. The company knows exactly where the energy it consumes comes from. Guarantees of Origin (GOs) attached to each MWh confirm this formally and enable compliance with the most stringent emissions reporting requirements.
This is particularly relevant in light of the upcoming GHG Protocol revisions, which will introduce mandatory hourly matching and regional alignment of energy with its actual source. A cPPA tied to a specific renewable installation already meets these requirements today. A detailed discussion of the GHG Protocol changes is available in the cPPA webinar recording.
cPPA is a proven decarbonisation tool for companies operating in Poland and Europe. FMCG, heavy industry and chemical companies, as well as public institutions looking to stabilise energy costs and meet CSRD emissions reporting requirements, are already signing this type of agreement.
2. What are the main types of cPPA and how do they differ?
There are two main cPPA models: physical and virtual (financial).
A physical cPPA involves actual delivery of energy from a renewable installation directly to the grid. The client draws energy at their locations along with the associated Guarantees of Origin (GOs). This model works best for large industrial consumers with a stable consumption profile. Volta Polska offers a physical cPPA based on the EFET standard, handled by experienced balancing partners.
A virtual cPPA (financial, CfD) does not involve physical energy delivery. The parties settle the difference between the contract price and the market price: if the market price is higher, the producer pays the difference to the client; if lower, the client pays the difference to the producer. The virtual model is flexible and suits companies with multiple locations or dispersed energy consumption.
The choice between physical and virtual depends on the consumption profile, company structure and ESG goals. A detailed discussion of both models is available in the cPPA webinar recording.
3. How does cPPA differ from SaaS, and when should you choose one over the other?
cPPA and SaaS are two different models for purchasing green energy without any upfront capital investment. cPPA is based on delivering energy from a PV farm off the client’s premises. SaaS is a photovoltaic installation built directly on the company’s site.
| cPPA | SaaS | |
|---|---|---|
| Installation location | Renewable farm off the client’s premises | On the client’s site (roof, ground or car park) |
| Distribution charges | Full distribution charges apply | None (self-consumption) |
| Min. annual consumption | from 8–10 GWh | from 2.5 GWh |
| Contract term | 5–20 years* | 15–20 years* |
* In the cPPA model, shorter contracts are possible for already-financed assets. In the SaaS model, Volta Polska covers the full cost of building the installation. The minimum contract period is 15 years.
cPPA is the stronger fit for companies with high energy consumption, multiple locations, or no space available for an on-site installation. It also lets companies actively support the development of new renewable projects in Poland, which matters for those reporting “additionality” as part of their ESG strategy. SaaS is the better choice when a company has its own space (roof, ground or car park) and wants to reduce grid draw and lower distribution charges.
4. Which companies and institutions is cPPA best suited for?
cPPA works well wherever a company has high and stable energy consumption but lacks the space for an on-site installation, or where consumption exceeds what an on-site installation could deliver. It is used primarily by:
- manufacturing and industrial plants,
- companies in the FMCG and chemical sectors,
- companies operating across multiple locations,
- public institutions and local governments.
For manufacturing and FMCG companies, the priority is long-term energy cost stability and credible supply-chain emissions reporting. For public institutions, the key benefit is zero upfront investment while meeting climate commitments.
Example: The Sadów Photovoltaic Power Plant (15 MWp) supplies green energy under a cPPA to a large FMCG manufacturing facility, covering approximately 30% of its annual electricity demand. More details in the press release.
Finances and Savings
5. What are the main financial benefits of a cPPA?
The main financial benefit of a cPPA is energy cost stability over a period of several to over ten years. The 2022–2023 energy crisis showed how rapidly market prices can spike and how exposed companies with high energy cost ratios can be. Standard energy contracts are typically signed for 1–3 years, offering no long-term protection against price swings. A cPPA removes that risk, enabling multi-year energy budget planning regardless of market conditions.
Volta Polska offers a cPPA based on the EFET standard with a predictable price throughout the contract term. The detailed pricing structure, including inflation indexation, is agreed individually during contract negotiations.
A detailed discussion of the financial benefits of cPPA is available in the cPPA webinar recording.
6. What should you look for when choosing a cPPA partner?
A cPPA is a long-term commitment that carries certain risks. Choosing the right partner and having a well-structured contract are the best ways to manage them.
- Financial stability of the producer. The partner must be able to deliver on the contract for its entire duration. Volta Polska is part of the international Volta Groupe, operating in Poland, France and the Indian Ocean region, with shareholders including TiLT Capital Partners i Eiffel Investment Group.
- Contract standard. Agreements based on the Energy Traders Europe standard are market-recognised and precisely govern settlement rules, balancing mechanisms, and procedures for curtailment and negative prices.
- Operational experience. The partner should own and operate renewable energy installations and have a documented track record of maintaining them. Volta Groupe manages over 500 photovoltaic installations in France. Volta Polska, as part of the group, draws on this experience and applies internal O&M Excellence standards when operating its own farms in Poland.
- Support throughout. Volta Polska guides the client from consumption profile analysis and source selection, through contract negotiations, to ongoing reporting and operational management of the installation.
A detailed discussion of partner selection criteria and cPPA contract structure is available in the cPPA webinar recording.
Implementation and Service
7. What is the minimum energy consumption required to enter into a cPPA?
There is no single fixed threshold. The minimum consumption depends on the type of assets covered by the contract (PV installations, wind farms, BESS storage) and the client’s consumption profile.
The indicative threshold for a standard cPPA is annual energy consumption of around 8–10 GWh. Transaction and legal costs are practically the same regardless of contract size, which means they are proportionally higher for smaller volumes. Volta Polska assesses each case individually.
Companies with lower consumption or their own space for an installation (roof, ground or car park) may want to consider the SaaS model. Szczegóły w Solar as a Service Q&A.
8. How long does cPPA implementation take and which departments are involved?
Concluding a cPPA is more involved than a standard energy contract. From the first conversations to signing, the process typically takes between a few and several months , depending on the complexity of the contract and the company’s organisational structure.
On the client side, the process typically involves procurement or energy, finance, and legal departments. In companies with a developed ESG strategy, the sustainability team is also brought in.
Volta Polska approaches each project individually. The offer is prepared based on the client’s actual consumption profile, and our team accompanies the client throughout the entire process.
9. How does the cPPA implementation process work, step by step?
Companies with multiple locations — such as manufacturing plants, warehouses or retail sites — can cover all of them under a single contracting process. Volta Polska manages multi-site projects in which individual installations may be smaller than in a standalone project. The overall scale of the partnership justifies implementation even at locations that would not meet the entry threshold on their own. Terms for each multi-site project are agreed individually.
| Phase | What we do | Outcome |
|---|---|---|
| 1. Consultations | Consumption profile analysis, selection of the optimal energy source, initial pricing | Initial offer |
| 2. Contracting | Negotiation of commercial and legal terms, agreement on balancing and settlement mechanisms | Contract signed |
| 3. Transition period | Grid connection formalities, coordination with the network operator, preparation for delivery | Ready for delivery |
| 4. Delivery | Energy delivery launched, Guarantees of Origin issued, ongoing reporting | First green energy deliveries from the cPPA |
Contracting is usually the longest phase — the time required depends on the complexity of the agreement, the number of locations and the client’s organisational readiness. We discuss a detailed timeline during a free consultation.
10. Where does the energy in a Volta Polska cPPA come from?
Volta Polska supplies energy from its own renewable energy installations located in Poland. As an independent power producer (IPP), Volta Polska owns and operates every installation from which energy is delivered under the cPPA.
Volta Polska has projects at various stages of development, from early-stage development through to fully operational farms. During conversations with the client, Volta Polska establishes their needs: expected contract size, technology, delivery start date and ESG goals. On this basis, it matches the right project to the client’s individual requirements.
ESG and Reporting
11. How does cPPA support ESG targets and CSRD reporting?
cPPA has a direct impact on Scope 2 emissions. Under the GHG Protocol market-based method, a cPPA together with the associated Guarantees of Origin allows a company to report a zero or very low emission factor for consumed electricity. The company knows exactly which renewable installation the energy it uses comes from.
This is particularly important in the context of CSRD requirements, which demand not only the use of green energy but also consistent and verifiable reporting data. The long-term nature of a cPPA builds a transparent energy data record that is clear and credible for investors, financial institutions and supply chain partners.
cPPA also has an indirect effect on Scope 3 emissions. By supporting the construction of new renewable installations in Poland, a company contributes to lowering the emissions intensity of the national energy mix, which reduces the carbon footprint embedded in the goods and services it purchases.
12. How does cPPA prepare a company for the GHG Protocol Hourly Matching requirements?
Currently, Scope 2 emissions reporting under the GHG Protocol is based primarily on annual energy balancing and Guarantees of Origin (GOs), which can come from various renewable installations across Europe. In this model, what matters is the total volume of green energy purchased over the year, not when or where it was generated relative to consumption.
The planned revisions to the GHG Protocol are moving towards a more rigorous approach, covering both hourly matching and regional alignment of energy with the electricity system in which it is consumed.
The direction of change is away from cross-European market balancing and towards greater temporal and grid-level alignment.
cPPA is a more advanced model than standard GO certificates, as it links energy consumption to a specific renewable installation and better prepares organisations for future Scope 2 requirements.
A detailed discussion of the GHG Protocol changes and their implications is available in the cPPA webinar recording.
13. How does cPPA support the development of new renewable energy installations in Poland?
Long-term cPPA agreements help develop new renewable projects by giving producers greater revenue predictability. This makes it easier to secure financing and get construction under way.
In practice, this means that some projects are built precisely because companies commit to offtake under a cPPA. This mechanism is known as „additionality” — the real-world impact of energy buyers on expanding new renewable capacity in the energy system.
At Volta, we look for partners who want not only to buy green energy but also to play an active role in developing new renewable projects in Poland and supporting the energy transition.
14. Which companies are best suited for cPPA?
cPPA works best for organisations with high or predictable energy consumption that want to protect themselves against energy price volatility and deliver on their ESG commitments.
The model is most commonly used by:
- manufacturing companies,
- logistics and warehousing centres,
- the retail sector and commercial chains,
- data centres and technology companies,
- large service organisations with multiple locations.
cPPA is the right choice for companies that:
- are planning Scope 2 emissions reductions,
- are preparing for CSRD reporting,
- want to increase the share of renewables in their energy mix,
- are looking for greater long-term energy cost predictability.