Thames Water has gone out to tender with an AMP8 contract for to put a Corporate Power Purchase Agreement in place for the provision of electricity worth an estimated £200 million.

The water company isseeking to diversify its electricity portfolio through corporate Power Purchase Agreements (PPAs) with theaim of securing long-term price certainty while supporting decarbonisation targets through a competitive tender process.

Thames Water is looking to sign a long-term physical PPA with a wind or solar PV power generator with the primary target of procuring 100-150 GWh per annum of renewable energy through the tender. The utility has also flagged up the possibility of increasing the volume to 200 GWh per annum if “commercially compelling offers” are received.

Thames Water is stipulating that each contract should be a minimum of 20 GWh and a maximum of 150 GWh per annum. The company is open to both newbuild and operational projects, provided that the newbuild projects have, or will obtain, all necessary permits and consents.

Thames is aiming to start procuring volumes as soon as possible, with preferred start dates within the next 18 months. However, it will also consider projects with Commercial Operation Dates (CODs) before April 2026.

The water company said it is seeking long-term price stability for its power supply and prefers a 5-year contract, although terms ranging 3 to 10 years will be considered.

Time limit for receipt of tenders or requests to participate is 18 July 2024 – click here to access the tender documentation.