Electricity

Tender description

The City of London Corporation (‘City Corporation’) has committed to sourcing 100 % renewable electricity, with renewable PPAs being an integral part of its energy procurement and sustainability strategies. The City Corporation is therefore seeking to sign a long-term offsite Power Purchase Agreement (‘PPA’) with an onshore wind farm or solar PV developer in Great Britain (i.e. excluding Northern Ireland). In the interest of creating ‘additionality’, the City Corporation seeks a ‘new’ project, which is not yet fully constructed but that has already been permitted/consented. The City Corporation would consider an operational project as a bridging option only. The City of London Corporation (The City) is seeking to enter into an offsite Power Purchase Agreement (PPA) with a renewable energy project owner and operator (The developer), from which The City purchases all (or an agreed proportion) of the power generated at an agreed fixed price for the duration of the contract, indexed annually to CPI, along with renewable energy benefits. The project should be new i.e. not yet fully constructed, and it must be built in Great Britain (i.e. excluding Northern Ireland) and should expect to deliver on average c.40-60 GWh per annum with P50 outputs near to 50 GWh preferred. This could be from a single generation asset, several assets, or a proportion of a larger asset. Minimum delivery requirements for project availability and output/performance will be negotiated between The city and the developer. The contract structure will be a sleeved (‘physical’) PPA, for the supply of onshore wind power or solar power only, with an existing utility supplier providing the sleeving services (The sleeving supplier). The city will also consider ‘firmed’ options where the developer works with a trader/utility to deliver annual or monthly baseload blocks of power. The developer will supply the power under the PPA to the sleeving supplier on behalf of The City, and will work with the sleeving supplier to facilitate the supply of electricity from the renewable energy project. Also The developer will transfer all environmental attributes (including Renewable Energy Guarantees of Origin (‘REGOs’)) to the sleeving supplier on behalf of the city at no additional cost (i.e. included within the PPA price). The term of the PPA will be 10-15 years from the Commercial Operations Date (COD). The first COD acceptance date shall be 1.10.2020. The ‘Scheduled COD’ is 1.4.2021. The ‘COD Longstop Date’ shall be 1.4.2022, unless the contractor does not provide a Bridging solution (i.e. REGO-backed power at the same PPA price from an operational source), in which case the COD Longstop date shall be the same as the ‘Scheduled COD’, 1.4.2021.