Power Purchase Agreement for Off-site Renewable Electricity

Power Purchase Agreement for Off-site Renewable Electricity – City of London

The City of London Corporation has committed to sourcing 100 % renewable electricity, with renewable PPAs being an integral part of its energy procurement and sustainability strategies.

United Kingdom-London: Electricity

2019/S 126-307770

Contract notice

Supplies

Legal Basis:

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

City of London Corporation
Guildhall
London
EC2P 2EJ
United Kingdom
Telephone: +44 2073321065
E-mail: James.Carter@cityoflondon.gov.uk
NUTS code: UKIInternet address(es):Main address: www.cityoflondon.gov.uk

I.2)Information about joint procurement

I.3)Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at: www.capitalesourcing.com

Additional information can be obtained from the abovementioned address

Tenders or requests to participate must be submitted electronically via: www.capitalesourcing.com

Tenders or requests to participate must be submitted to the abovementioned address

I.4)Type of the contracting authority

Regional or local authority

I.5)Main activity

General public services

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

Power Purchase Agreement for Off-site Renewable Electricity

Reference number: 18/299/FS

II.1.2)Main CPV code

09310000

II.1.3)Type of contract

Supplies

II.1.4)Short 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.

II.1.5)Estimated total value

Value excluding VAT: 36 000 000.00 GBP

II.1.6)Information about lots

This contract is divided into lots: no

II.2)Description

II.2.1)Title:

II.2.2)Additional CPV code(s)

II.2.3)Place of performance

NUTS code: UK

II.2.4)Description of the procurement:

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.

II.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6)Estimated value

Value excluding VAT: 36 000 000.00 GBP

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 180

This contract is subject to renewal: no

II.2.9)Information about the limits on the number of candidates to be invited

II.2.10)Information about variants

Variants will be accepted: no

II.2.11)Information about options

Options: no

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

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

II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation

III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

As stated in the procurement documents.

III.1.2)Economic and financial standing

Selection criteria as stated in the procurement documents

III.1.3)Technical and professional ability

Selection criteria as stated in the procurement documents

III.1.5)Information about reserved contracts

III.2)Conditions related to the contract

III.2.2)Contract performance conditions:

III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description

IV.1.1)Type of procedure

Competitive dialogue

IV.1.3)Information about a framework agreement or a dynamic purchasing system

IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated

IV.1.6)Information about electronic auction

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

The procurement is covered by the Government Procurement Agreement: yes

IV.2)Administrative information

IV.2.1)Previous publication concerning this procedure

Notice number in the OJ S: 2019/S 037-082730

IV.2.2)Time limit for receipt of tenders or requests to participate

Date: 05/08/2019

Local time: 12:00

IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates

IV.2.4)Languages in which tenders or requests to participate may be submitted:

English

IV.2.6)Minimum time frame during which the tenderer must maintain the tender

Duration in months: 3 (from the date stated for receipt of tender)

IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no

VI.2)Information about electronic workflows

Electronic invoicing will be accepted

Electronic payment will be used

VI.3)Additional information:

This tendering exercise is being undertaken using the electronic tendering system ‘capitalEsourcing’ (url:www.capitalesourcing.com). Suppliers will need to register an interest on the system in order to participate and registration is free.

The contract duration is expected to be between 10-15 years. The estimated value given at II.2.6) is for the full 15-year duration of the contract. The estimated annual contract value is therefore 2 400 000 GBP.

VI.4)Procedures for review

VI.4.1)Review body

High Court of England and Wales
Royal Courts of Justice, The Strand
London
WC1A 2LL
United Kingdom

VI.4.2)Body responsible for mediation procedures

High Court of England and Wales
Royal Courts of Justice, The Strand
London
WC1A 2LL
United Kingdom

VI.4.3)Review procedure

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

Cabinet Office
70 Whitehall
London
SW1A 2AS
United Kingdom

VI.5)Date of dispatch of this notice:

28/06/2019