Location based renewable energy partnerships

Award outcome

Description

Yorkshire Water is looking to establish a partnership with REGO (Renewable energy guarantee of origin) backed, location based, renewable energy suppliers to procure behind the meter renewable energy via direct wire to energise its operational assets. The renewable energy schemes can be energised already, or those that are proposed future development nearby YWs sites. The consumption of renewable energy is a key component of YWs route map to 40% location based renewable energy by 2030 - this framework will support our carbon reduction ambitions, as well as increase operational efficiency, and de-risk energy supply: the benefits of which can be passed to our customers. Yorkshire Water has thousands of operational assets across Yorkshire which are largely powered by energy from grid network providers. Currently ca.18% of Yorkshire Waters energy consumption is self-generated through REGO backed, location based renewable energy. A potential future tender provides an opportunity for suppliers to lay a direct power connection from private energy providers' renewable energy assets to Yorkshire Water sites in close proximity. The scope of this sourcing activity is to realise opportunities at a local level, rather than securing a renewable energy supply for the entire region. The core principle of this arrangement is that there is a mutual commercial benefit in contracting directly with a private supplier for the supply of electricity; YW would benefit from reduced energy importing costs, whilst the supplier would benefit from long term power purchase agreements (PPAs). Yorkshire Water currently is working on a number of behind the meter, direct wire solutions including both third party owned and YW owned generation. This includes, Wind, Solar, Hydro, CHP and EfW connections. YW is open to DBFOM (Design, Build, finance, operate, maintain) solutions where either a fixed or flexible PPA tariff could then be agreed at an agreeable rate for both parties. Alternatively, YW are seeking connections to existing generating programmes.

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