Award

Private Wire - Power Purchase Agreements

SCOTTISH WATER

This public procurement record has 1 release in its history.

Award

26 Feb 2024 at 19:05

Summary of the contracting process

The procurement process involved the buying organization Scottish Water, with the title "Private Wire - Power Purchase Agreements" in the industry category of Electricity. The procurement stage was an award, completed on February 25, 2024, for Power Purchase Agreements to supply power to specific sites in Scotland until 2040, with extension options to 2049.

This tender presents a business growth opportunity for suppliers in the electricity industry who can provide Power Purchase Agreements for onsite power generation. Businesses involved in power generation, particularly those with expertise in private wire transactions, would be well-suited to compete in this limited procurement process negotiated without public notice by Scottish Water Horizons Ltd. The awarded contract with a value of £54,000,000 presents a lucrative opportunity for suppliers to secure long-term contracts in the electricity sector in Scotland.

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Notice Title

Private Wire - Power Purchase Agreements

Notice Description

Power Purchase Agreements (PPAs) for power provided to Stirling WWTW and Dalmarnock WWTW via private wire from onsite CHP units. The CHP units are being sold by Scottish Water Horizons Limited to Noventa - Helix Heat & Power I Ltd and Noventa - Helix Heat & Power II Ltd. As SW has on ongoing requirement for onsite power generation, PPAs will be placed with the new asset owners. The PPAs will be in place until 2040 with extension options to 2049.

Lot Information

Lot 1

Power Purchase Agreements (PPAs) for power provided to Stirling WWTW and Dalmarnock WWTW via private wire from onsite CHP units. The CHP units are being sold by Scottish Water Horizons Limited to Noventa - Helix Heat & Power I Ltd and Noventa - Helix Heat & Power II Ltd. As SW has on ongoing requirement for onsite power generation, PPAs will be placed with the new asset owners. The PPAs will be in place until 2040 with extension options to 2049.

Procurement Information

Scottish Water Horizons Ltd, a wholly-owned subsidiary of Scottish Water, owns and operates CHP plants on two Scottish Water sites (Stirling WWTW and Dalmarnock WWTW). These units produce power which is sold to Scottish Water by Scottish Water Horizons Ltd under an internal Group financial agreement. Scottish Water Horizons is in the process of selling the CHP units to Noventa - Helix Heat & Power I Ltd (Stirling WWTW) and Noventa - Helix Heat & Power II Ltd (Dalmarnock WWTW). Stirling WWTW and Dalmarnock WWTW have an ongoing requirement for the onsite power generated by these units. As these units provide power via a private wire it is only possible to purchase this power from the asset owner. There is no reasonable alternative to the provision of onsite power and so the asset owner of the existing CHP units has the exclusive right to supply power via the private wire. Scottish Water intends to contract with Noventa for the remaining 17 years of the initial PPAs in order to secure access to the onsite power generation up to 2040 (or 2049 including extension options). The advertised value is based on current energy costs and does not include forecast inflation. The contract price paid will be appropriately indexed over time.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-043d00
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/006182-2024
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Limited
Procurement Method Details
Negotiated without publication of a contract notice
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy


CPV Codes

09310000 - Electricity

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£54,000,000 £10M-£100M

Notice Dates

Publication Date
26 Feb 20241 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
25 Feb 20241 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
SCOTTISH WATER
Contact Name
Not specified
Contact Email
iain.masterson@scottishwater.co.uk
Contact Phone
+44 1414830215

Buyer Location

Locality
GLASGOW
Postcode
G33 6FB
Post Town
Glasgow
Country
Scotland

Major Region (ITL 1)
TLM Scotland
Basic Region (ITL 2)
TLM3 West Central Scotland
Small Region (ITL 3)
TLM34 North Lanarkshire
Delivery Location
TLM Scotland

Local Authority
North Lanarkshire
Electoral Ward
Stepps, Chryston and Muirhead
Westminster Constituency
Cumbernauld and Kirkintilloch

Supplier Information

Number of Suppliers
2
Supplier Names

NOVENTA - HELIX HEAT & POWER I

NOVENTA - HELIX HEAT & POWER II

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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