Power Purchase Agreement for Off-site Renewable Electricity

Description

The City of London Corporation (The City) has entered into an offsite power purchase agreement (PPA) with a renewable energy project owner and operator (The Developer), from which the City purchases all of the power generated at an agreed fixed price for the duration of the contract, indexed annually to CPI, along with renewable energy benefits. The project is expected to deliver through the PPA approximately 54GWh per annum. The project is to become fully operational by February 1st 2022. The contract structure is a ‘pay-as-produced’ sleeved ('physical') PPA with an availability guarantee provided by the Developer, for the supply of solar power. It is “sleeved” through the existing utility supplier who provide a shaping and balancing service separately. The City has acquired the exclusive right to the power and the associated environmental attributes (including Renewable Energy Guarantees of Origin (‘REGOs’)) under the PPA, which is included in the price offered by the Developer. The Sleeving Supplier will facilitate (or ‘sleeve’) the supply of such power and associated environmental attributes from the renewable energy project to the City pursuant to the terms of the sleeving PPA entered into between the City and the Sleeving Supplier. The term of the PPA is 15 years. The contract was awarded at 54.6GWh towards the top of the proposed 35-55GWh procurement range and is valued at £40m over the term