Planning

Renewable electricity procurement – seeking a corporate power purchase agreement (PPA)

  • National Highways

UK2: Preliminary market engagement notice - Procurement Act 2023 - view information about notice types

Notice identifier: 2025/S 000-042566

Procurement identifier (OCID): ocds-h6vhtk-056505

Published 24 July 2025, 8:55am



Scope

Description

National Highways (NH) is investigating the potential use of Power Purchase Agreements (PPAs), including potentially corporate PPAs and onsite PPAs, and is looking to potentially partner with a renewable electricity developer (or developers) to support its clean energy goals and reduce price volatility risk across its energy portfolio.

National Highways is looking to engage with interested developers as part of pre-market engagement who can meet the following:

• Corporate (offsite sleeved) PPAs of either virtual or physical type, that would be operational by the end of 2028

• Power generation to meet demand of up to approximately 35GWh annually

• Competitive energy prices for a duration of 10 to 15 years

• Additionality through the deployment of new renewable electricity generation capacity

In addition, National Highways is also looking to engage with interested onsite renewables developers in the same pre-market engagement discussions who can meet the following:

• Development, build, financing, operation and maintenance of renewable generation on one or more NH-owned sites, likely to be ground mount solar, although technology not confirmed at this stage. Potential sites may include both sites suitable for a direct connection to NH demand centres, and other sites that could be developed as standalone renewables sites.

• Power generation of a scale of approximately up to 20GWh annually, assuming full use of land (indicative view only, to be refined)

• Flexibility to adopt either a PPA structure or structure with capex contribution (from NH) for the developed sites

• Competitive energy prices for a duration of up to ~25 years

• Additionality through the deployment of new renewable electricity generation capacity

Interested developers may have capabilities in one or both of the categories above (Corporate PPAs and/or onsite PPAs/renewable development)

National Highways is looking to engage with the market to understand capacity, capability and appetite for our requirement, and to further shape our procurement strategy with market feedback. The relevant contract value may therefore vary depending on the final approach taken (current indicative estimate is based on a full term CPPA). This notice does not constitute the commencement of a formal competitive procurement.

Total value (estimated)

  • £35,000,000 excluding VAT
  • £42,000,000 including VAT

Above the relevant threshold

Contract dates (estimated)

  • 31 May 2027 to 29 May 2037
  • Possible extension to 22 July 2039
  • 12 years, 1 month, 23 days

Main procurement category

Services

CPV classifications

  • 45251160 - Wind-power installation works
  • 09331000 - Solar panels
  • 31121300 - Wind-energy generators
  • 71314000 - Energy and related services

Contract locations

  • UK - United Kingdom

Engagement

Engagement deadline

31 July 2025

Engagement process description

National Highways will be starting market consultation to understand marketplace limitations, opinions and suggestions, with an aim to help shape the Commercial and Procurement Strategy and Contract Documents.

This is the first in a number of market engagement activities, including, but not limited to:

1. A questionnaire to aid us in defining our procurement strategy. The questionnaire can be found at the following link:

https://forms.office.com/e/qmfVAmRRvZ

or please request the link from the following mailbox: indirectprocurementmailbox@nationalhighways.co.uk

Please note that the closing date for this questionnaire is Friday 15 August 2025

2. Select supplier 121's on key themes to aid in the development of the Procurement strategy.

This Pre- Market Engagement Notice is issued solely for the purpose of commencing a market consultation exercise and does not constitute any commitment by National Highways to undertake any public procurement exercise.

Interested parties will not be prejudiced by any response or failure to respond to this notice. Nor shall a response to this notice guarantee an invitation to participate in this market consultation exercise or any future procurement process that National Highways may conduct. This notice does not constitute a call for competition to procure any works or services and is not published to reduce time limited for the receipt of tenders.


Submission

Publication date of tender notice (estimated)

9 March 2026


Contracting authority

National Highways

  • Companies House: 09346363

Bridge House, 1 Walnut Tree Close

Guildford

GU1 4LZ

United Kingdom

Region: UKJ25 - West Surrey

Organisation type: Public authority - central government