Wednesday, 27 August 2025

Revolutionising Energy: Flogas Leads the Way with Record-Breaking Multi-Buyer Corporate Power Purchase Agreement

Introduction: A New Milestone in Renewable Energy Procurement Fourteen Irish businesses are now powering their operations using wind energy, thanks to a groundbreaking multi-buyer Corporate Power Purchase Agreement (CPPA) with Flogas, a DCC company. This innovative deal — the largest of its kind in Ireland by customer count — connects businesses directly to Cronalaght 1 […]

Introduction: A New Milestone in Renewable Energy Procurement

Fourteen Irish businesses are now powering their operations using wind energy, thanks to a groundbreaking multi-buyer Corporate Power Purchase Agreement (CPPA) with Flogas, a DCC company. This innovative deal — the largest of its kind in Ireland by customer count — connects businesses directly to Cronalaght 1 Wind Farm in Co Donegal, marking a major advancement in how smaller companies can access clean, affordable energy.

What is a Multi-Buyer CPPA?

A Corporate Power Purchase Agreement allows companies to purchase electricity directly from a renewable energy generator, such as a wind or solar farm. A multi-buyer CPPA enables several businesses to share access to the same renewable energy source, combining their demand and unlocking benefits previously reserved for larger corporations.

This model is gaining traction in Ireland as more businesses seek to:

  • Reduce their carbon footprint

  • Lock in stable energy pricing amid market volatility

  • Increase transparency in their energy sourcing

Role of CPPAs in Ireland

Corporate Power Purchase Agreements (CPPAs) are playing an increasingly vital role in transforming Ireland’s energy landscape. As the country works to meet its ambitious climate targets—namely, generating 80% of electricity from renewables by 2030—CPPAs offer a practical, market-based solution that connects large energy users directly with renewable energy producers.

Ireland operates a Single Electricity Market (SEM) with Northern Ireland, one of the most integrated electricity markets in Europe. While traditionally dominated by utility-scale generators and regulated suppliers, the market is evolving rapidly to incorporate more variable renewable energy sources like wind and solar.

The government’s Climate Action Plan supports the growth of CPPAs as a key tool for unlocking private sector capital. Additionally, grid operator EirGrid and the Commission for Regulation of Utilities (CRU) are working to modernise market rules and grid infrastructure to accommodate new types of contracts and decentralised energy generation.

Challenges and Opportunities

While interest in CPPAs is growing, challenges remain—particularly around contract complexity, regulatory clarity, and access to the grid. Smaller companies may also lack the scale to enter such agreements. However, market developments such as aggregated CPPAs and more transparent energy pricing could help broaden access and streamline the process.

Thus, deals like the one with Flogas are very welcome to boost Ireland’s efforts to convert to net-zero.

The Flogas–Cronalaght CPPA: Key Details

  • 14 companies from sectors including agriculture, aviation, construction, hospitality, manufacturing, food/beverage, and technology are participating.

  • Participating businesses include Ashleigh Farms, Fresh Opportunities, SIAC, and EFG Inflight Ltd.

  • The wind energy is sourced from Cronalaght 1 Wind Farm, which has been operational for more than 25 years.

  • The wind farm prevents approximately 3,872 tonnes of CO₂ emissions annually — equivalent to powering 4,200 electric vehicles for a year.

  • CPPAs range from 1 to 2 years in duration, with supply commencing in Q1 2025.

  • Flogas has already opened its next multi-buyer CPPA for subscription, with supply beginning July 1, 2025.

Business Leaders React

Ken McGrath, Director, Ashleigh Farms:
“Partnering with Flogas on this CPPA has allowed us to secure renewable energy at a competitive price, significantly contributing to our sustainability targets. This agreement provides us with long-term price stability and demonstrates our commitment to a greener future.”

David Field, Managing Director, Fresh Opportunities:
“Sustainability is at the heart of everything we do. Partnering with Flogas allows us to power our operations with renewable wind energy, directly supporting our mission to reduce our environmental impact. It also resonates strongly with our customers.”

Barry Deane, Purchasing Manager, EFG Inflight Ltd:
“The aviation sector faces unique sustainability challenges, and this CPPA gives us a direct, impactful way to source renewable electricity for our ground operations. It’s a practical step toward decarbonisation and aligns with our vision for a more sustainable future in aviation.”

Impact and Broader Significance

This CPPA structure helps smaller businesses access renewable energy by removing traditional barriers — including contract complexity and minimum volume requirements. All 14 companies also benefit from more transparent Scope 2 emissions reporting, aligning with established greenhouse gas (GHG) accounting standards.

John Rooney, Managing Director, Flogas Ireland:
“We’re incredibly proud to be leading the charge in making renewable energy more accessible for Irish businesses. This is just the beginning — we’re already developing our next multi-buyer CPPA, further solidifying our commitment to providing sustainable energy solutions.”

The Road Ahead

Flogas’s pioneering approach to CPPAs is helping to transform Ireland’s energy landscape by:

  • Opening up renewable energy markets to SMEs

  • Supporting Ireland’s decarbonisation goals

  • Encouraging more direct corporate engagement with green energy generation

With continued demand from businesses and growing interest in sustainability across sectors, Flogas’s next multi-buyer CPPA is already underway.

Conclusion

Flogas’s innovative multi-buyer CPPA with Cronalaght 1 Wind Farm represents a major step forward in democratizing access to renewable energy in Ireland. By enabling 14 businesses to secure competitively priced wind power, the agreement showcases how collaboration and smart structuring can unlock clean energy solutions — not just for multinationals, but for companies of all sizes.


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