Case studies
Exploring procurement of indirect PPAs
June 3, 2025
The NHS set a world-leading commitment to reach net zero for carbon emissions by 2045. It will be difficult to deliver on this ambition without first achieving a step change in the NHS’s electricity supply chain.
An indirect wire, Corporate Power Purchase Agreement (PPA) is a contract for offsite renewable energy delivered via the National Grid. Increasingly common in the private sector, the NHS is yet to adopt them. PPAs can cut carbon emissions on a large scale, provide cost stability by avoiding energy price fluctuations and boost the UK’s green energy economy.
University College London Hospitals NHS Foundation Trust (UCLH) is a national leader in delivering against its sustainability plans, yet faces high electricity costs due to significant, and increasing, consumption. Electricity contributes around 50% of the Trust’s direct carbon emissions and UCLH has a goal to achieve carbon net zero by 2031.
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direct carbon emissions from electricity0 %of UCLH’s direct carbon emissions are from electricity
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carbon reduction0tonnes of carbon emissions could be reduced per year through a PPA
Economic modelling, done in partnership with Real Zero and Akereos, shows that a cautious 50% wind and solar mixed PPA could save UCLH up to £1 million every year and reduce annual carbon emissions by up to 5,500-6,000 tonnes over the length of the PPA contract.
The first indirect wire Corporate PPA in the NHS is now in the process of procurement because of our work with UCLH.
To support others, we are developing a toolkit to build understanding of this type of PPA, helping interested organisations assess their impact. Interest has been shown Cambridge University Hospitals, Barts Health, and NHS England who are looking to incorporate them within the Energy Basket.
The work has also influenced the CCS’ PPA procurement framework that UCLH are looking to procure through initially.