Multi-Party Renewable Corporate Power Purchase Agreements (PPAs)

Descriptions

Transport for London (TfL) is London's single largest consumer of electricity and among the top users in the UK, with an annual aggregate electricity consumption of ~1.6 Terawatt hours (TWh) across traction and non-traction power.TfL is in the process of preparing to re-launch its first Corporate PPA, 'PPA Comet'. This anticipated procurement aims to secure energy under a long term PPA from new build assets.Alongside the development of PPA Comet, TfL has been engaged in the GLA Energy Procurement Collaboration Programme for the past year with the Greater London Authority (GLA), the Metropolitan Police, the London Fire Brigade, and the London Legacy Development Corporation (LLDC), referred to collectively as the "Collaboration Bodies".Across the Collaboration Bodies, annual electricity consumption is expected to reach a minimum of c.1.7TWh by 2030, where TfL is the majority user. The GLA Energy Procurement Collaboration Programme therefore aims to pool the electricity demand of TfL with that of other Collaboration Bodies with smaller energy requirements. This will enable the Collaboration Bodies to benefit from enhanced purchasing power through the joint procurement of renewable PPAs via a multi-party PPA (Collaborative PPA).The Collaboration Bodies are actively working on developing options to deliver this collaborative procurement approach. TfL, together with its advisers, are conducting a market sounding exercise with potential developers, financiers and electricity suppliers to obtain market feedback in relation to the procurement of a Collaborative PPA.The purpose of this Market Sounding is to better understand market appetite and feedback in relation to different PPA features and associated shaping and sleeving arrangements in the context of a multi-party PPA.TfL has made a questionnaire available on our sourcing system, SAP Ariba (https://service.ariba.com/Supplier.aw). Information about how to access and respond to this questionnaire can be found in section II.2.14 below.Feedback from this questionnaire will inform and help shape the development and subsequent procurement of the initial Collaborative PPA. Its purpose is to invite views and insight from interested parties in a structured format. We may contact respondents to seek further information or clarification through a structured meeting.We would like to hear from any interested party, regardless of whether they intend and/or have the capability to participate in the Collaboration Bodies' procurement of a Collaborative PPA.Please submit your response to the questionnaire by 5PM on Friday 23rd December 2022.