RWE Signs PPA with 5 Retail Co-operatives in UK

RWE, the UK’s largest power generator and a global leader in renewable energy and five independent retail co-operatives – Lincolnshire Co-op, Scotmid Co-op, East of England Co-op, Southern Co-op and Central Co-op, who led on the deal – on Tuesday signed a landmark 10-year corporate power purchase agreement (CPPA) to supply electricity from renewable energy sources to over 400 locations across the UK.

Starting the 1 April 2025, the long-term contract will provide up to 53 GWh of green electricity per year, enough to power over 400 retail stores, funeral homes, travel agents and more. Sourced from the London Array offshore wind farm in the outer Thames Estuary, this agreement will see significant savings for the five co-operatives throughout the lifetime of the CPPA.

The offshore wind farm London Array is operated by RWE and owned by a consortium of four partners: RWE (30%), Canadian pension fund company Caisse de dépôt et placement du Québec (CDPQ), Greencoat UK Wind PLC, and Masdar Energy UK Limited.

It has 175 wind turbines and an installed capacity of 630 MW. From the time of its fully commissioning in 2013 until September 2018, it was the largest offshore wind farm in the world.

This agreement is a significant milestone in the co-operative movement’s journey towards sustainability.

By securing long-term renewable energy, these five independent co-operatives are not only reducing their carbon footprint but also reinforcing their commitment to ethical business practices and environmental responsibility.

The agreement was made possible through a collaboration with Inspired PLC, the UK’s leading energy and sustainability advisor, who negotiated the CPPA, and Shoosmiths LLP, who led the legal negotiations. Notably, this deal was executed in just three months, less than half the usual timeframe, demonstrating the expertise and efficiency of the partnerships involved.

Tie-Up with NBIM

In a related development, RWE has entered into a new partnership with Norway’s sovereign wealth fund Norges Bank Investment Management (NBIM) for its Nordseecluster and Thor offshore wind projects which are currently under construction.

While NBIM, which is also the co-investor, will acquire 49% stakes, RWE will remain in charge of construction and operations. The agreed purchase price is approximately $1.51 billion as of closing which is expected by the beginning of the third quarter of 2025.

RWE CEO Markus Krebber said that active portfolio management is part of their systematic approach to optimise the company’s capital allocation for offshore wind business. By selling down and entering partnerships for their projects, RWE will be reducing its capital employed for projects under construction and NBIM will get stakes in highly attractive projects, he said.

 Once fully commissioned, the two offshore wind farms will have a total capacity of 2.7 GW, enough to power more than 2.6 million households in Germany and Denmark.

While Thor offshore wind project will use 72 15 MW wind turbines with a combined total capacity of 1.08 GW, powering the equivalent of more than one million Danish homes annually, Nordseecluster will use 104 15 MW wind turbines with a combined total capacity of 1.56 GW, powering the equivalent of 1.6 million German homes annually.