Twenty of the UK’s leading universities have struck a £50m deal to buy renewable energy directly from British windfarms for the first time.
The collaborative clean energy deal will supply electricity from wind farms across Scotland and Wales to universities including Newcastle University, University of Exeter and Aberystwyth University.
The landmark deal, known as a “power purchase agreement” or PPA, is the first time that public sector energy users have clubbed together to buy clean electricity.
The PPA was arranged by deal brokers at The Energy Consortium and Squeaky Clean Energy to fix the price of renewable electricity from a portfolio British windfarms for the next 10 years. The universities will be guaranteed clean energy by the windfarm owner, Norwegian energy giant Statkraft, which will issue certificates matching the output of the windfarms.
Richard Murphy, the managing director of The Energy Consortium, said the “groundbreaking deal” would help universities reduce their carbon emissions and save money by accessing the power purchase market for the first time. Murphy said that collaborative energy purchase deals mean that even small institutions are now “able to navigate a previously inaccessible market” too.