Northumbrian Water
case study

Cleaning up the future


With a corporate power purchase agreement, Northumbrian Water was able to reach its sustainability goals and cut costs.

Background

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.

 

The challenge


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.

This corporate PPA is not only a first of its kind in the UK; it aligns perfectly with our sustainability goals. The long-term stability this brings is fantastic for us, and great news for our customers and stakeholders, because it reduces operational costs without compromising our work.


Graham Southhall
Group Commercial Director, Northumbrian Water Ltd.

Transforming coastal communities

Transforming coastal communities in the UK

We’ve helped to transform coastal communities across the UK through investment in local facilities, the creation of high-skilled jobs, and the development of competitive, export-orientated local supply chains.
 

The solution

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.

Northumbrian Water corporate PPA key facts
Duration
10-year from 2019

Total volume
100 GWh per year

Wind farm

Race Bank, between Lincolnshire and North Norfolk coasts
Corporate PPAs – the benefits
Budget certainty
Fix energy prices through agreements of four years or more.

Reduced risk

Protect your business from energy price changes in a volatile market place.

Increased sustainability

Support the development of renewable energy generation with no investment or upfront costs: a boost to CSR and an important contribution to national emission reduction targets.

Fulfil compliance

Meet reporting requirements from RE100 and UN Global Compact. Renewable Electricity Guarantee of Origin certificates (REGOs) enable you to report zero carbon emissions.

Get in touch

If you have any questions about Ørsted's green corporate PPAs and how it can help your business, please get in touch.