Alongside four other co-operative independent society members, Scotmid Co-op, has signed a landmark 10-year corporate power purchase agreement (CPPA) with RWE, the UK’s largest power generator, to supply electricity from renewable energy sources to over 400 locations across the UK.
Scotmid has committed to the agreement, which will see around 280 trading sites including Scotmid stores, Semichem retail outlets and Scotmid Funerals, supplied by the green energy source. The retailer has pledged that 50,000 Megawatts of its energy will come from the deal.
Starting the 1st of April 2025, the long-term contract will provide up to 53 gigawatt hours (GWh) of green electricity per year, enough to power over 400 retail stores, funeral homes, travel agents and more. Sourced from the London Array offshore wind farm in the outer Thames Estuary, this agreement will see significant savings for the five co-operatives (Scotmid Co-op, Lincolnshire Co-op, East of England Co-op, Southern Co-op and Central Co-op) throughout the lifetime of the CPPA.
This pioneering agreement was made possible with energy and sustainability advisor, Inspired PLC, who negotiated the CPPA, and Shoosmiths LLP, who led the legal negotiations. Notably, this deal was executed in just three months, less than half the usual timeframe, demonstrating the expertise and efficiency of the partnerships involved.
This agreement is a significant milestone in the co-operative movement’s journey towards sustainability. By securing long-term renewable energy, these five independent co-operatives are not only reducing their carbon footprint, but also reinforcing their commitment to ethical business practices and environmental responsibility.
Craig Strachan, Chief Financial Officer at Scotmid Co-op, said: “At Scotmid, we are proud to join forces with other co-operatives through this innovative Corporate Power Purchase Agreement. This collaboration not only strengthens our commitment to sustainability but also ensures we are securing reliable, clean energy at predictable rates for the long-term benefit of our members and communities. By working together, we are not only taking meaningful steps towards reducing our carbon footprint but also contributing to the UK’s collective efforts to reach net-zero. This agreement exemplifies the power of co-operation and collective action in driving real change for a sustainable future.”
Karen Hosking, PPA Manager at Inspired, said of the project: “We have facilitated a unique collective Corporate Power Purchase Agreement (CPPA), bringing together multiple parties to achieve a common goal. Typically, such projects take 18 months, but we accelerated execution to just three months, seizing market opportunities—which is a real achievement within our industry.
“By investing in this existing renewable asset, the ISMs secure traceable renewable energy on a long-term basis, support their sustainability targets, and contribute towards the UK’s net-zero journey.”
London Array is operated by RWE and owned by a consortium of four partners: RWE (30%), Caisse de dépôt et placement du Québec, Greencoat UK Wind PLC, and Masdar Energy UK Limited. It has 175 wind turbines and an installed capacity of 630 Megawatts. From the time of its fully commissioning in 2013 until September 2018, it was the largest offshore wind farm in the world.
