Transport for London has relaunched its first Power Purchase Agreement to source renewable energy to run its operations.
The company is looking for a generator to supply it with 80GWh-200GWh of green electricity per year under a 15-year PPA.
The contract will require the winner to begin delivering power to TfL no earlier than 1 April 2025 and no later than 31 December 2028.
The PPA aims to facilitate up to 10% of TfL’s required electricity coming from new-build renewable energy assets.
The contract structure will be a pay-as-produced sleeved PPA for the supply of wind power or solar power only, with TfL’s existing utility supplier providing the sleeving services.
Transport for London previously launched the tender in June 2022, looking to procure 150GWh-200GWh of renewable energy per year for the London Underground network over a 15-year term.
However, the process was soon withdrawn, and a relaunch paused due to unprecedented uncertainty in the market. With market volatility decreasing, the company has decided to relaunch the tender.
Lilli Matson, Chief Safety, Health and Environment Officer at Transport for London, said: “As one of the largest consumers of electricity in the UK, I am delighted to issue a tender for a Power Purchase Agreement that will be the first step towards ensuring TfL continues its journey towards our, and the Mayor of London’s, goal of net zero by 2030.
“This contract offers renewable generators the potential to sell their energy to one of the most reliable, essential and attractive electricity customers in Britain. TfL has a vision to be the strong, green heartbeat of London and I’m delighted to open to the energy market a new opportunity that will mean creating green jobs from a secure and reliable source.”