Voltalia has signed a power purchase agreement (PPA) for a 50MW solar plant in south-west England to supply clean power for the City of London Corporation under a 15-year contract.
The “pioneering” £40m green energy deal could provide a blueprint for local authorities seeking to reduce carbon emissions and cut costs, said the City of London Corporation.
The deal is the first of its kind in the UK to be signed directly between a renewables producer and governing authority.
It will enable Voltalia to leverage cash to build the facility, while saving the city corporation around £3m in energy costs.
The arrangement will allow “cost certainty and avoid the risks” involved with local authority-owned energy firms, following recent high-profile selloffs of loss-making council-owned companies in Nottingham and Bristol, Voltalia said.
The solar plant, located in Dorset, will provide over half the City of London Corporation’s electricity, powering buildings including its historic Guildhall headquarters, three wholesale markets and the Barbican arts centre.
The new deal forms part of the organisation’s wider commitment to climate action. Its Climate Action Strategy, launched last month, commits it to making the Square Mile net zero for carbon emissions by 2040 – 10 years earlier than Government goals.
Chair of the City of London Corporation’s corporate asset sub-committee, Jamie Ingham Clark, said: “This is a pioneering scheme which we hope will lead the way for local authorities across the UK. It means they can play their part in reducing emissions without the risks of owning their own energy firms or infrastructure and without the need for Government funding.
“The deal, which supports our ambitious Climate Action Strategy, will help cut emissions and give us a cheaper, more secure electricity supply protected from the price volatility of energy markets.”
Voltalia has had a presence in the UK since 2012, developing, constructing and operating 22 solar farms with a total
The solar farm, near the village of Spetisbury, was granted planning permission by Dorset Council in February.