| Background |
| The challenge |
| The solution |
| PPA benefits |
As an industry leader, Northumbrian Water Group supplies both water and sewerage services to 2.7 million customers in the north east of England, trading as Northumbrian Water. The company also supplies 1.8 million customers in the south east of England with water services, trading as Essex and Suffolk Water.
Named the world's most ethical water company by the Ethisphere Institute, Northumbrian Water has a high commitment to sustainability. As a large energy consumer, adopting a green, sustainable approach to their energy use plays a vital role in Northumbrian Water’s vision: to be the national leader in providing excellent, sustainable water and waste services, at a fair price.
Northumbrian Water already has an ambitious sustainable and renewable energy strategy. Onsite solar, hydro, gas-to-grid and advanced anaerobic digestion power generation meets a percentage of their energy requirement. To meet their additional energy needs, they had already partnered with Ørsted, to provide 100 % renewable electricity to their UK sites.
However, to achieve the goals and aspirations set out for the next 25 years, a long-term, innovative approach to Northumbrian Water’s energy use was needed to increase efficiency, manage costs, and deliver value to their customers.
Graham Southhall
Group Commercial Director, Northumbrian Water Ltd.
Ørsted provided Northumbrian Water with a ten-year corporate power purchase agreement (corporate PPA), the first of its kind in the UK. The agreement sources 30 % of Northumbrian Water’s renewable electricity directly from the Race Bank offshore wind farm, off the coast of Norfolk.
As well as supporting the growth of Northumbrian Water’s renewable energy activity, the agreement helps to drive down Northumbrian Water’s operation costs through a long-term fixed price for electricity. The agreement also provides an innovative balancing service of the wind output, so that the electricity can be delivered to Northumbrian Water under their existing supply agreement.
By taking renewable energy from a specific wind farm, Northumbrian Water supports the development of new renewable generation. Renewable Electricity Guarantee of Origin certificates (REGOs) enable the company to report zero carbon emissions for that electricity.
