Welcome to Generation Services
Bespoke contracts to suit your needs
Whatever your generation type, we have a product that could help. Whether you're experienced or not, we can create bespoke contracts tailored to your needs that help you get the most from an ever-changing market.
If you choose renewable sources such as wind, solar or biomass, you will be on the path to supporting the government's energy initiatives. What's more, if your business qualifies for renewable energy certificates, we will help you maximise the commercial value of these.
See our 'Government initiatives' section for more information.
How does it work?
Exported energy is bought via a Power Purchase Agreement (PPA), which is a contract between a generator and a buyer. This covers the buying of exported energy, but can also include the purchasing of any associated renewable certificates.
Set your exported unit price for budget certainty
Fixed price PPA
- Provides price certainty for each unit you export
- Protects against wholesale price volatility
- Assists budget certainty
A fixed price PPA lets you set the price for each unit you export upfront, helping to give you budget certainty in a volatile market.
Standard fixed price PPAs allow you to set a price for 6-36 months, but in certain circumstances it may be possible to develop a longer term agreement.
Get the most for your electricity and minimise the risk
You could minimise the risk and maximise the value
- Spread your risk in an increasingly volatile market
- Sell your electricity in multiple transactions
- Take advantage of market movements to help you get the most for your electricity
As the UK wholesale market has become increasingly volatile it’s almost impossible to get the best price in a single contracting decision. Our flexible PPA can help you mitigate the risk. It lets you take advantage of market movements and benefit from multiple selling decisions, therefore helping you get the best returns on your generation portfolio in an unpredictable market.
A flexible PPA gives you access to the UK wholesale market. Plus it offers real-time market information and support via our award-winning Optimisation Desk and online Risk Navigator platform for easy access to market news as it breaks.
Direct Budget Management (DBM)
Expert guidance and a flexible contract
Additional support for flexible energy transacting from our award-winning Optimisation Desk
- Expert guidance to support your individual requirements
- Robust framework to support selling on a flexible contract
- May provide guaranteed floor price within liquid periods
We know that changing to a flexible contract can be daunting, even with all the benefits. That’s why we’ve developed our DBM energy-selling solution, for generators who feel they’d welcome some support.
Hedge generation volume beyond standard contract term
- Allows you to extend your contract beyond its end date for a longer-term hedging horizon
- Maintain a standard ‘firm’ term contract for a minimum of one year, with a six-month rolling horizon
- Take advantage of a ‘Lite’ term of up to 15 years from contract signature
- Termination clauses apply in the extended Lite term
Looking to hedge your price risk over a longer term, while working within the constraints of a shorter-term contract? This is a challenge facing many of our larger customers who generate, so we have developed the ideal solution – Contract Lite for export.
PPA Netting (Third Party Netting)
Bringing generators and buyers together contractually
Bringing generators and supply customers together
- Contractually connects your generation assets with your own supply requirements. Or it can contractually connect your generation assets with a third party supply customer for mutual benefit
- May provide you and supply customers long-term pricing mechanisms
- Purchaser may benefit from renewable supply
If you are a power user looking to contract with an embedded generator (a generator connected directly to National Grid), or vice versa, we can help start a Third Party Netting relationship that balances the financial and environmental ambitions of both parties.
Long-term solutions (long-term PPAs)
A tailored longer term agreement, enabling stability
When you need stability
- Long-term framework agreements to help with the financing of your generation project
- Help to maximise your power value by linking your payments to an open and liquid market index
- Guaranteed off take of your power and associated benefits for up to 15 years
Underpin your generation activity with a five to 15 year PPA. Product structures can be tailored to your specific requirements.
Contracts for Difference (CfD)
An agreed price for your energy, regardless of the market
Contracts for Difference (CfD) has replaced the Renewables Obligation (RO) which closed for new entrants at the end of March 2017. If you generate renewable energy you may be able to benefit from the CfD scheme.
CfD reduces uncertainty about energy prices for renewable energy which is valuable in a volatile market.
How does CfD work?
- A fixed price for the renewable energy you will export is agreed through your allocated CfD (called a ‘strike price’)
- When the market falls below this, you’re paid the difference from a fund run by the Low Carbon Contracts Company (LCCC)
- If the market rises above the strike price you pay back the difference
- This means you’ll always get paid the agreed strike price for your exported energy and never lose money ensuring security of revenue
Please contact us to discuss the PPA options available to you if you are eligible for CfD.
Extra benefits from your energy generation
Reap the benefits of generating renewable energy
If you generate renewable energy you may benefit from one of the government’s initiatives, including Contracts for Difference (CfD) and Renewables Obligation Certificates (ROCs).
To be eligible for ROCs you need to:
- Have had your installation accredited by Ofgem via its Renewable and CHP Register
- Arrange to sell your electricity to an energy supplier like us through a PPA
- Measure your electricity through an export meter
- Send your data to Ofgem each month in exchange for renewable energy certificates
Renewables Obligation Certificates (ROCs)
If you eligible for ROCs, these have a cash value to you.
The Renewables Obligation (RO) is an obligation promise for UK suppliers to supply more energy from renewable sources, and to help us with this, we may buy your ROCs.
What you need to know:
- The RO was open to new generators until 31 March 2017. Since then new renewable generators can apply for support under the CfD scheme
- Generation that was accredited under the RO before April 2017 continues to receive ROCs on accredited capacity for the lifetime of their support under the scheme
How do ROCs work?
- You need to be accredited with Ofgem.
- Renewable generators report the amount of renewable energy that they generate on a monthly basis to Ofgem
- The number of ROCs you get depends on the technology you use (i.e. wind, solar, biomass etc) and when your asset was originally built
- We can buy your ROCs as part of a bundled package with your exported energy through a PPA, or buy the certificates through a ROC Trading Master Agreement (RTMA)