A total of 20 universities in the UK have signed a landmark £50 million agreement to buy renewable energy directly from wind farms, the first of its kind in the country.
Under the aggregated power purchase agreement (PPA), educational institutions including Newcastle University, Exeter University and Aberystwyth will be supplied with electricity from onshore wind farms built across Scotland and Wales.
The universities will be guaranteed green electricity by developer Statkraft, which will issue certificates that match the output of the wind farms.
Richard Murphy, TEC Managing Director said: “The corporate PPA market has long been touted as a means for larger organisations to procure renewable power and enable subsidy-free development. But to date, it has largely been the preserve of very large companies, requiring substantial commitments from buyers. By acting together in a collaborative approach facilitated by the energy expertise here at TEC, these institutions, whether large or small, have been able to navigate a previously inaccessible market.
“It allows members to protect budget, they know what they are going to pay for power over the term but it also provides flexibility – because they are not committing 100% of annual baseload volume to the agreement.”