TFGM Virtual Power Purchase Agreement (vPPA)

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.

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 at the above address. Note some of the documentation has been labelled as 'draft' and may be subject to change.

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 at the above Pro-Contract link, and guidance on how to register onto the bidder day will be available on Pro-Contract.