A start-up company which aims to connect commercial buyers with farmers who generate renewable energy has received almost £1m in funding.
With the agricultural industry embracing anaerobic digestion, backers say the platform will make it easier for farmers to gain visibility of clean energy markets, capitalise on market opportunities and achieve the best prices for power sold to the grid.
Called PPAYA, the new virtual marketplace aims to maximise the price of Power Purchasing Agreements (PPAs) for farmers and other energy generators while minimising the associated administrative burden.
It works by bringing people together and encouraging collaboration between all stakeholders involved in the PPA. This is set to become more important as the UK strives to de-carbonise to meet climate change targets.
New climate change commitments announced by the government last month set the UK on course to cut carbon emissions by 78% by 2035. Renewables energy is seen as a key way of achieving this goal.
The commitment, which is set to become law by the end of June, brings forward the government’s current target for reducing carbon emissions by 15 years. Doing so would position the UK as a world leader on climate change.
The subsidy free market is expected to unlock about £20bn of investment in the UK between now and 2030. PPAYA will also help existing generators maximise returns when they look to renew their current PPAs.
The funding will be used to widen the company’s offering to agricultural energy generators, by backing projects that will support the UK’s transition towards renewable generation and achieving net zero emissions.
PPAYA founder and chief executive Kristina Rabecaite said: “The energy industry is very reactive when it comes to executing PPAs and most people and companies do not have the tools or time to alert them to power price spikes.
“We are delighted to have secured support from an established network of energy investors who recognise the value that PPAYA can bring to the industry – and the benefits we can bring to generators, renewable asset developers and fund managers.”