Frasers Property signs CPPA to procure clean energy from Welsh solar farm

Pictured: Frasers’ Jeremy Parsons and MAPP’s Peter Tench

Frasers Property UK’s CPPA has been signed with MAPP and will support the property firm’s aim to reach net-zero emissions by 2050.

The CPPA will provide power from the 27 MW solar farm near Llanedi, Wales, directly powering multi-let buildings across business parks, which will also benefit Fraser Property’s corporate clients.

Frasers Property is aiming to be net-zero carbon across all its operational areas of control by 2030, targeting a 61% reduction in Scope 1 & 2 emissions, and a 46% reduction in Scope 3 emissions in the same timeframe.

The company now procures 100% of renewable energy across all landlord-controlled areas.

Frasers Property UK’s sustainability director Jeremy Parsons said: “Our focus for this year has been to follow through and deliver on our SBTi carbon commitments, most importantly reducing our emissions on single and multi-let buildings. This new initiative in collaboration with MAPP is another step closer to our targets and we’re pleased to be able to deliver a future-proof energy solution for our assets.

“The CPPA with MAPP provides our occupiers with green-sourced electricity at a discount to market rate. This gives Frasers Property a competitive advantage as a sustainable real estate investor-developer-manager.”

CPPA-OK

In 2023, approximately three-quarters of the world’s newly added renewable energy capacity was attributed to solar power. At the same time, corporate funding for the solar sector surged by 42% year-on-year.

Research from BloombergNEF found that large businesses globally recorded 46GW of Power Purchase Agreements (PPAs) with wind and solar farm developers and operators in 2023, up 12% year-on-year. However, Energy UK notes that uptake in the UK industry is low due to “high counterparty risk and price sensitivity”.

Commonly used REGOs are also under scrutiny, with businesses calling for policy reforms in order to give businesses tangible evidence of their commitment to procuring renewables.

The likes of pub and brewer Marstons and date centre operator Telehouse recently unveiled innovative PPA contracts to ensure clean energy usage.