The City of London to source over half its electricity demand from Voltalia’s solar farm in Dorset
France-based renewable energy company Voltalia announced it has signed a 15-year power purchase agreement (PPA) to supply the City of London with renewable energy from a new 49.9 MW solar PV plant near the village of Spetisbury, in Dorset.
The City of London Corporation will buy all the electricity produced by the new solar plant to be built by Voltalia, which will save the governing body of the Square Mile around £3 million in energy costs.
The solar plant will provide over half of the City of London electricity needs, powering buildings including its historic Guildhall headquarters, three wholesale markets and the Barbican arts centre.
This £40 million green energy deal forms part of the City Corporation’s Climate Action Strategy, which aims to make the Square Mile net-zero for carbon emissions by 2040. Since 2018 the City Corporation has been sourcing 100 per cent of the electricity from renewable sources and this PPA with Voltalia will enable the creation of new green infrastructure, reduce the need for fossil fuels and help meet green energy goals.
This deal is the first of its kind in the UK to be signed directly between a renewables producer and a governing authority and could provide a blueprint for local authorities seeking to reduce carbon emissions and cut costs, according to the City Corporation.
The City Corporation worked with global professional services network Ernst & Young and multinational law firm DLA Piper on the deal, and Voltalia was advised on the PPA tender process by Burgess Salmon.
Voltalia has had a presence in the UK since 2012, developing, constructing and operating 22 solar farms with a total capacity of 193 megawatts having more in the pipeline.
Jamie Ingham Clark, Chair of the City of London Corporation’s Corporate Asset Sub-Committee, said:
“This is a pioneering scheme which we hope will lead the way for local authorities across the UK. It means they can play their part in reducing emissions without the risks of owning their own energy firms or infrastructure and without the need for Government funding.
The deal, which supports our ambitious Climate Action Strategy, will help cut emissions and give us a cheaper, more secure electricity supply protected from the price volatility of energy markets.”
Voltalia CEO Sebastien Clerc said:
“We are very proud to support the City of London Corporation in its 2040 net carbon zero target by providing clean electricity to the historic Square Mile and the financial and commercial heart of the UK.
We are thrilled to be expanding our positions in the UK to further enhance our ability to source and secure Power Purchase Agreements within the country and to boost our UK capability in Asset Management to ensure projects perform in line with expectations.”
Source: Press release by Voltalia and the City of London Corporation. Photo credit: Pierre Blaché via Flickr (CC0).
