Welcome to Generation Services
And if you choose renewable sources like wind, solar or biomass, you'll be on the path to supporting the government's energy initiatives. What's more it's likely your business will qualify for renewable energy certificates, and we'll help you maximise the commercial value of these.
See our Government initiatives section for more information.
How does it work?
Exported energy is bought through a Power Purchase Agreement (PPA), 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 certainty of price for each unit you export
- Protects against wholesale price volatility
- Assists budget certainty
A Fixed Price Power Purchase Agreement (PPA) lets you set the price for each unit you export upfront, helping give you budgetary 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 power and minimise the risk
You could minimise the risk and maximise value
- Spread your risk in an increasingly volatile market
- Sell your power in multiple transactions
- Take advantage of market movements to help you get the most for your power
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, benefit from multiple selling decisions and therefore helps get the best returns on your generation portfolio in an unpredictable market.
A Flexible PPA gives you access to the UK wholesale market via our sister company, RWE Supply and Trading. Plus it offers real-time market information and support via our award winning Optimisation Desk and online tool Risk Navigator 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
- Removes the emotive element of energy transacting, while still having access to the wholesale market
- 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
- Light 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 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 the National Grid), or vice versa, we can help start a Third Party Netting relationship that balances the financial and environmental ambitions of both parties.
This works by allowing the
Long Term Solutions (Long Term PPAs)
A tailored longer term agreement, enabling stability
When you need stability
Long Term PPAs
- Long term framework agreements to help 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 fifteen year Power Purchase Agreement (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) are gradually replacing the Renewables Obligation (RO) scheme due to the changes outlined in the Electricity Market Reform (EMR). If you generate renewable energy you may be able to benefit.
A CfD reduces uncertainty about energy prices for renewable energy - valuable in a volatile market.
How do CfDs 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
- 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 PPA options available if you are eligible for a 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 (CfDs), Renewables Obligation Certificates (ROCs) and/or Levy Exemption Certificates (LECs).
To be eligible for renewable certificates you need to:
- Get your installation accredited by Ofgem via the Online and Renewable CHP register
- Once registered, arrange to sell your power to an energy supplier like us through a Power Purchase Agreement (PPA)
- Measure your power through an export meter
- Send your data to Ofgem each month in exchange for renewable energy certificates
Renewables Obligation Certificates (ROCs)
If you generate renewable energy, you may be eligible for Renewables Obligation Certificates (ROCs) which 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 is open to new generators until 31st March 2017. After this all eligible renewable generators will use the Contracts for Difference scheme
- Generation that is accredited under the RO before April 2017 will continue to receive its full lifetime of support (20 years) until the scheme closes in 2037
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 Power Purchase Agreement (PPA), or just buy the certificates through a ROC Trading Master Agreement (RTMA)
Levy Exemption Certificates (LECs)
Energy generated from certain renewable technologies is exempt from the Climate Change Levy (CCL) and qualifies for Levy Exemption Certificates (LECs). These are valuable as businesses can use them instead of paying a climate change levy.
What you need to know:
- You get 1 LEC per MWh of renewable electricity
- You need to be accredited with Ofgem and report the amount of renewable energy you generate to them
- Have to be sold with the accompanying power
Feed In Tariff (FiT)
If you are generating renewable energy on a smaller scale with a capacity under 250kW, then the Feed-in Tariff (FiT) may be best for you.