CPC Technology Management
Power Purchase Agreements for Councils for (Energy & Water Security)
Why Councils Should Purchase Power Purchase Agreements (PPAs): Ensuring Energy and Water Security for the Future
As local governments face growing challenges in providing sustainable services and ensuring long-term resource security, purchasing Power Purchase Agreements (PPAs) offers a strategic solution to enhance energy and water security. A PPA is a contract between a purchaser (such as a local council) and an energy provider, typically for renewable energy sources. These agreements guarantee a fixed price for electricity over a long period, offering numerous benefits for councils, communities, and the environment.
Our Approach:
1. Promoting Renewable Energy and Sustainability
One of the main advantages of PPAs is their ability to support renewable energy generation. By purchasing energy through a PPA, councils can reduce their reliance on fossil fuels and actively contribute to the transition to a cleaner, greener energy future. This not only helps local councils meet carbon reduction targets but also supports national and international efforts to combat climate change. By locking in a stable price for renewable energy, councils can increase their energy resilience, ensure future sustainability, and contribute to the global shift toward decarbonisation.
2. Stable and Predictable Energy Costs
Energy costs have traditionally been volatile, subject to fluctuations in fuel prices and market dynamics. PPAs offer councils long-term price stability, with contracts typically spanning 10 to 20 years. This predictability allows local governments to better plan their budgets, providing certainty over energy expenses, and reducing the financial risks associated with market price fluctuations. In turn, councils can redirect savings into critical community services and infrastructure projects.
3. Enhancing Energy Security
By engaging in a PPA, councils can diversify their energy sources, moving away from reliance on traditional energy suppliers. This decentralisation enhances local energy security, particularly as energy infrastructure around the world becomes increasingly vulnerable to extreme weather events, geopolitical tensions, and other disruptions. A council’s commitment to renewable energy through a PPA can protect against potential future energy shortages, ensuring that communities have access to reliable, sustainable power well into the future.
4. Water Security Linkage
Energy and water are inextricably linked, with a significant amount of water being used in the energy production process, particularly in fossil fuel-based power generation. By choosing to purchase energy from renewable sources via a PPA, councils not only reduce carbon emissions but also decrease water usage. Wind, solar, and other renewable technologies typically use little to no water in their operation, unlike coal or nuclear power stations, which rely on vast amounts of water for cooling.
This reduction in water consumption is particularly important in areas that face water scarcity or drought. Councils can play a vital role in ensuring water security by minimising the strain on water resources and promoting sustainable practices across the community.
5. Long-term Sustainability and Resilience
Purchasing energy through a PPA ensures that councils are not only securing affordable energy today but are also future-proofing their communities against evolving environmental and market challenges. With energy efficiency and sustainability at the core of such agreements, local governments can help drive their own resilience, safeguarding future generations by ensuring that both energy and water resources remain plentiful, affordable, and accessible.
6. Economic Benefits and Job Creation
In addition to the environmental and operational advantages, PPAs can also boost local economies. Councils investing in renewable energy through PPAs can support the development of green jobs and industries, creating long-term employment opportunities within the community. Renewable energy projects also stimulate local investment, helping to strengthen the economy while promoting sustainable growth.
Conclusion
By purchasing Power Purchase Agreements, councils can enhance energy and water security, stabilise energy costs, and contribute to environmental sustainability. These agreements offer a smart, forward-thinking approach to addressing the pressing challenges of the future, ensuring that communities are resilient and prepared for the changing energy and environmental landscape. As local governments look ahead, PPAs represent a critical tool for securing a cleaner, more secure, and economically sustainable future.