Awarded contract

Power Purchase Agreement for Off-site Renewable Electricity

  • City of London Corporation

F03: Contract award notice

Notice reference: 2021/S 000-002012

Published 1 February 2021, 10:56pm



Section one: Contracting authority

one.1) Name and addresses

City of London Corporation

Guildhall

London

EC2P 2EJ

Email

James.Carter@cityoflondon.gov.uk

Telephone

+44 2073321065

Country

United Kingdom

NUTS code

UKI - LONDON

Internet address(es)

Main address

www.cityoflondon.gov.uk

one.4) Type of the contracting authority

Regional or local authority

one.5) Main activity

General public services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Power Purchase Agreement for Off-site Renewable Electricity

Reference number

18/299/FS

two.1.2) Main CPV code

  • 09310000 - Electricity

two.1.3) Type of contract

Supplies

two.1.4) Short description

The City of London Corporation (The City) has entered into an offsite power purchase agreement (PPA) with a renewable energy project owner and operator (The Developer), from which the City purchases all of the power generated at an agreed fixed price for the duration of the contract, indexed annually to CPI, along with renewable energy benefits.

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £40,000,000

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - UNITED KINGDOM

two.2.4) Description of the procurement

The City of London Corporation (The City) has entered into an offsite power purchase agreement (PPA) with a renewable energy project owner and operator (The Developer), from which the City purchases all 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 is expected to deliver through the PPA approximately 54GWh per annum. The project is to become fully operational by February 1st 2022.

The contract structure is a ‘pay-as-produced’ sleeved ('physical') PPA with an availability guarantee provided by the Developer, for the supply of solar power. It is “sleeved” through the existing utility supplier who provide a shaping and balancing service separately.

The City has acquired the exclusive right to the power and the associated environmental attributes (including Renewable Energy Guarantees of Origin (‘REGOs’)) under the PPA, which is 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 is 15 years.

The contract was awarded at 54.6GWh towards the top of the proposed 35-55GWh procurement range and is valued at £40m over the term

two.2.5) Award criteria

Quality criterion - Name: Technical / Weighting: 30

Quality criterion - Name: Commercial / Weighting: 70

Cost criterion - Name: Net Present Value / Weighting: 70

two.2.11) Information about options

Options: No

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Competitive dialogue

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

four.2) Administrative information

four.2.1) Previous publication concerning this procedure

Notice number: 2019/S 243-596591


Section five. Award of contract

Contract No

1

Title

Power Purchase Agreement for Off-site Renewable Electricity

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

26 January 2021

five.2.2) Information about tenders

Number of tenders received: 2

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor

South Farm Solar Limited

One Lyric Square

London

W6 0NB

Country

United Kingdom

NUTS code
  • UKI - LONDON
National registration number

11677325

The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Initial estimated total value of the contract/lot: £30,375,000

Total value of the contract/lot: £40,000,000


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

High Court of England and Wales

Royal Courts of Justice, The Strand

London

WC1A 2LL

Country

United Kingdom

six.4.2) Body responsible for mediation procedures

High Court of England and Wales

Royal Courts of Justice, The Strand

London

WC1A 2LL

Country

United Kingdom

six.4.4) Service from which information about the review procedure may be obtained

Cabinet Office

70 Whitehall

London

SW1A 2AS

Country

United Kingdom