Power Purchase Agreement for Off-site Renewable Electricity

Tender description

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 per annum preferred. This could be from a single generation asset, several assets, or a proportion of a larger asset. The Developer shall commit to minimum delivery requirements for project availability. 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 acquire the exclusive right to the power and, at no additional cost, the associated environmental attributes (including Renewable Energy Guarantees of Origin ("REGOs")) under the PPA and the Sleeving Supplier will facilitate (or "sleeve") the supply of such power and associated environmental attributes from the renewable energy project to the City pursuant to the terms of the sleeving PPA entered into between the City and the Sleeving Supplier. The term of the PPA will be 15 years from the Commercial Operations Date (COD). The first date on which COD can be reached for the purposes of the PPA is 1 October 2020. By 1 April 2021 the Developer must have achieved either COD in respect of the Project or be able to offer an alternative Bridging solution (i.e. REGO-backed power at the same PPA price from an operational source). The City's preference is for COD or a Bridging Solution to be provided as close to 1 October 2020 as possible but this must be provided by 1 April 2021 at the latest. The longstop date for the Developer to achieve COD in respect of the Project is 1 April 2022, except to the extent that the Contractor does not provide a Bridging solution from 1 April 2021, in which case the COD Longstop Date is 1 April 2021.