The Co-op Group has relaunched Co-op Power, its co-operative energy purchasing arm, to help UK businesses source clean energy for their operations.
Co-op Power’s offering, which previously only operated internally, will include consultancy, energy purchasing, portfolio and invoice management and account management.
The relaunch follows two years of internal reforms, including strengthening the hedging strategy and expanding corporate power purchase agreements (cPPAs).
According to the Co-op’s Chief Procurement Officer, Imran Rasul, the group has “reengineered” its approach to make Co-op Power “stronger and more resilient than ever”.
The Co-op Group is active in the areas of food, retail, funerals, insurance and legal services. Co-op Power’s advisory services include PPA procurement and energy sleeves, providing access to the existing supplier network. It has partnerships with Shawton energy, RWE And Zestecwhich covers cPPAs for solar and wind projects, as well as commercial rooftop PV.
According to the company, it will now use its purchasing power to support other companies in their greener energy strategies. In 2022, the Co-op Group turned its focus to internal energy purchasing, but now says the foundations are in place to offer its ‘expertise’ to others.
It uses the Biggleswade distribution center in Bedfordshire, the largest in the Co-op’s logistics network, which the group has equipped with a 6,744-panel solar array expected to generate 2,500 MWh annually, as an example of its efforts.
The company soft launched to partner suppliers in June A report commissioned by the Co-op shows that electricity consumption by small and medium-sized enterprises (SMEs) is equivalent to 85% of all renewable electricity generated in 2024.
Companies face ‘far-reaching’ challenges to achieve clean energy goals
The Co-op report, published by the Green Alliance, shows that a significant proportion of SMEs are unable to absorb the costs required to invest in renewable energy installations or energy efficiency improvements, and many face high barriers to entry to secure access to PPAs.
While the Co-op Power offer is one solution to this, the report outlines policy recommendations for government-led support, including introducing a zero rate on the renovation of buildings that improve energy efficiency and providing a scheme of low-cost loans to SMEs to enable them to build on-site renewable energy generation.
