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 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, or portfolio of projects, should not be fully operational before the PPA is signed, expected to be QTR 2 2020 and must be located in Great Britain (i.e. excluding Northern Ireland) and should expect to deliver through the PPA on average c.35-55 GWh per annum, with P50 outputs near to 45 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. Project(s) with CODs between QTR 2 2020-QTR 4 2020 could become fully operational after the PPA is signed and sell to the market before the PPA is due to start on or after 1.4.2021. The contract structure will be a ‘pay-as-produced’ sleeved (‘physical’) PPA with an availability guarantee provided by the Developer, 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 the associated environmental attributes (including Renewable Energy Guarantees of Origin (‘REGOs’)) under the PPA, which should be included in the price offered by the Developer. 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. The first date on which supply and purchase under the PPA can start is 1.4.2021 while the commercial operations date (COD) longstop date will be 31.3.2023. Commercial scores will be based on Net Present Value (NPV in January 2020 terms), which will be assessed over 15 years, beginning on the bidder’s proposed PPA start date between 1.4.2021-31.3.2023.