The City of London Corporation has agreed a £40mn green energy deal which, it says, could offer a blueprint for other local authorities wanting to reduce carbon emissions and cut costs to follow.
On 18 November, it announced that it has signed a power purchase agreement (PPA) with Voltalia. The PPA will see it buy all of the electricity produced from a new-build, 95-000-panel, 49.9MW solar farm in Dorset for 15 years. The City Corporation said that it marks the first deal of its kind in the UK to be signed directly between a renewables producer and governing authority, allowing for cost certainty and avoiding the risks involved with local authority-owned energy firms.
The deal allows for Voltalia to leverage the cash it needs to build the facility, while saving the City Corporation £3mn in energy costs. The subsequent energy will provide over half of the City Corporation’s electricity, powering buildings such as its Guildhall headquarters, three wholesale markets and the Barbican arts centre.