The Crown Commercial Service (CCS) has released a new commercial framework to provide central government and other public sector bodies with direct access to renewable energy via long-term, fixed-price contracts
The Provision of Power Purchase Agreement (PPA), which went live on 15 April 2025, is essential to the UK on its journey towards achieving net-zero emissions by 2050.
Secured under PCR 2015, this four-year agreement allows public sector organisations to purchase clean electricity directly from UK-based renewable energy generators, including wind and solar farms. It is the first time this kind of large-scale, fixed-price access to domestic green energy has been available to the public sector, offering a game-changing blend of sustainability, affordability, and energy security.
John Welch, Commercial Director, Estates at Crown Commercial Service, highlighted the strategic importance of the agreement:
“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,” the Crown Commercial Service reported.
What are power purchase agreements?
Power Purchase Agreements (PPAs) are long-term contracts between an energy buyer and a generator, where the buyer agrees to purchase a certain amount of power at a fixed price. These deals are significant in today’s energy market, offering budget certainty while guaranteeing a supply of clean, green electricity. The energy can come from renewable sources, including onshore and offshore wind and solar photovoltaic (PV) farms.
A response to market needs
CCS developed the agreement in response to growing demand across the public sector for accessible, reliable, and low-carbon energy. Market research highlighted the need for a simplified and transparent route to sustainable electricity procurement. This new agreement directly addresses that, offering competitive rates and fixed-term pricing options that help organisations plan more confidently.
Welch added:
“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.”
Key benefits for public sector buyers
The CCS Power Purchase Agreement framework delivers multiple advantages:
- Direct access to UK-based renewable energy assets
- Protection from energy market volatility
- Streamlined procurement process, with pre-approved contract terms
- Support for net-zero strategies
- Improved national energy independence
Focusing on domestic renewable assets, the agreement reduces reliance on imported energy and boosts national resilience.
A win for sustainability and stability
This innovative approach does more than help organisations “go green.” It provides a secure and stable electricity supply at a predictable price, empowering public sector entities to budget more effectively while supporting the UK’s climate goals. The framework encourages innovation and investment in the renewable sector, helping drive long-term transformation.
By merging long-term value, environmental responsibility, and financial predictability. The CCS Provision of Power Purchase Agreement shows a new public sector energy procurement standard.
