Onsite Direct Wire Power Purchase Agreement Pilots

Description

Objectives: The Ministry of Defence (MOD) is seeking Power Purchase Agreements (PPA) to reduce unit electricity costs, increase site energy resilience, limit price volatility risk from its energy portfolio, and support emissions reduction aligned with Government policy. PPA Type: Renewable energy supply for up to five sites via on-site direct wire connection. Target start date: Target contract start date 31/03/28. Volume: Procure power generation to meet up to approximately 4–12 GWh/year of combined electricity consumption across the portfolio of sites. Provision of higher offtake volumes is dependent on the ability to demonstrate value for money in energy costs achieved and resilience provision. The site portfolio is expected to have a total annual demand of approximately 35 GWh/year. The details provided in this notice are early indicative estimates and may be subject to change/refinement based on final site selection and ongoing data collection. Sites: Potential sites may include up to five sites suitable for on-site, direct wire connection utilising MOD land in the South of England, shortlisted from a longlist of ~30 identified sites throughout the UK. Contract duration: Seeking competitive energy prices for up to 25 years, with potential option to extend. The estimated contract dates are 31/03/28 to 30/03/53. Technology: Open to competitive proposals for Renewable Energy Guarantees of Origin (REGO) compliant technologies, with technology choice subject to site-by-site requirements and MOD review. Previous market engagement: A virtual two‑hour supplier engagement session was held on 04/03/2025 to test early market views on high‑level PPA options and to support MOD’s understanding of market capabilities. Suppliers expressed strong appetite to engage and highlighted key considerations including avoiding over‑specification, clarifying roles and responsibilities, and addressing grid‑connection and MOD site factors that will shape the delivery approach.