TFGM Virtual Power Purchase Agreement (vPPA)

Contract summary

Industry

• Petroleum products, fuel, electricity and other sources of energy - 09000000

Location of contract

United Kingdom

Value of contract

£50,000,000 to £70,000,000

Procurement reference

GMPTE001-DN756077-99710394

Published date

3 February 2025

Closing date

6 March 2025

Closing time

4pm

Contract start date

31 January 2026

Contract end date

31 December 2046

Contract type

Supply contract

Procedure type

Competitive dialogue (above threshold)

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

Yes

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Description

Transport for Greater Manchester ('TfGM') is seeking to enter into a virtual Power Purchase Agreement ('vPPA') with a supplier ('the Supplier') to meet its clean energy goals​, and reduce price volatility risk from its energy portfolio. 

TfGM has a clear set of objectives for the vPPA procurement and is looking to engage with interested developers​ who can meet the following requirements:

Power generation to meet demand of between 35 and 42 GWh annually. 

Delivery of a vPPA with a target Commerical Operations Date (COD) no later than 30 June 2029.

A 'pay-as-produced' vPPA contract structure, for the supply of wind power (onshore or offshore) or solar power.

A vPPA term of 15 years, with the option, at TFGM's discretion, to extend for a further 5 years.

TfGM is the local government body responsible for transport across Greater Manchester, delivering an integrated transport network (known as the Bee Network) to improve lives by connecting people and places. We're the proud owners of Metrolink (the UK's largest light rail network) and we're looking to expand it in future. 

We've taken bus services back under local control: we're the first city region outside London to franchise bus services, and have committed to greening our network through zero emission vehicles. Local bus services moved under local control as part of the Bee Network by January 2025, and we're working to bring local rail services onto the Bee Network by 2030. 

In addition to our Head Office in central Manchester, we own Greater Manchester's major bus depots and bus stations, stops and shelters, invest in and manage new, modern transport interchanges, and manage a range of electric vehicle charging infrastructure across our estate, and more widely across Greater Manchester. Based on this, we therefore have a large energy portfolio, and are looking at interventions to manage this effectively and efficiently.  

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More information

Previous notice about this procurement

TFGM Virtual Power Purchase Agreement (vPPA)

• Opportunity
• Published 3 February 2025

Additional text

TfGM intends to procure a vPPA via a Competitive Dialogue procedure under the Utilities Contracts Regulations 2016 (UCR16). The estimated contract value is between £50,000,000 and £70,000,000. The contract will be based on a 15-year term, with the option for a 5 year extension, at TFGM's discretion.

Documentation, including the requirements, how to submit a tender, potential areas for dialogue, and the process for this, can be found on Pro-Contract. To access this, interested suppliers should register on Pro-Contract at https://procontract.due-north.com/register

Following this, suppliers can search for the project with the following information:
Project Name: TFGM Virtual Power Purchase Agreement (vPPA)
Project Pro-Contract Reference Code: DN756077
As part of the process, TFGM intends to hold a virtual bidder day on Thursday 13th February 2025. Suppliers intending to join will need to register onto the project on Pro-Contract, and guidance on how to register onto the bidder day will be available on Pro-Contract.

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About the buyer

Contact name

TfGM Procurement

Address

TfGM
2 Piccadilly Place
Manchester
M1 3BG
United Kingdom

Telephone

+44 1612441000

Email

procurement@tfgm.com

Website

http://www.tfgm.com