TfL Renewable Corporate Power Purchase Agreement ('PPA Comet')

Description

Transport for London (TfL) (contracting as its subsidiary, London Underground Limited) is seeking to enter into a PPA ('PPA Comet') with a renewable generator, and expects to contract for 150-200 GWhs of renewable energy per annum from 'additional' generator assets, pursuant to a 15 year PPA. The new build facility must be able to begin delivering power to TfL under a PPA no earlier than 1 June 2024 and no later than 30 June 2026. TfL will purchase the power generated by the renewable facility (or an agreed percentage of the power generated reflecting TfL's output requirement (i.e. 150-200 GWh per annum)) for the duration of the supply period (i.e. 15 years) as well as the associated environmental attributes and benefits. The contract structure will be a 'pay-as-produced' sleeved ('physical') PPA for the supply of wind power or solar power only, with TfL's existing utility supplier (or such other licensed supplier that TfL may appoint from time to time) providing the sleeving services. TfL is conducting a Negotiated Procedure with prior call for competition under the Utilities Contracts Regulations, and therefore some change to the published PPA may be expected. Potential areas of negotiation, and the process for conducting it, are included in the full suite of tender documents. As indicated in its press release of 19 March 2021, the GLA is exploring collaborative GLA Group new-build PPA procurements, along with the separate development of a long-term asset financing solution to be made available to bidders for those PPAs. The GLA also intends to make a tranche of long-term asset financing available to bidders for this TfL PPA, subject to due diligence. The GLA financing solution, and the GLA Group new-build PPA procurements, are separate from and independent of this TfL PPA procurement. Whether or not bidders take up the GLA financing offer will be solely for bidders to determine and no preference will be given in the evaluation of PPA bids to submissions from bidders who have taken up this offer. TfL has no information on the GLA financing offer; interested potential suppliers should contact PPAfinance@londontreasury.org.

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