Scottish Water : Private Wire - Power Purchase Agreements

UK-Glasgow: Electricity.

Preliminary Questions
   This notice is published by:
   Directive 2014/25/EU

Section I: Contracting authority/entity

I.1) Name and addresses
       Scottish Water
       6 Buchanan Gate, Glasgow, G33 6FB, United Kingdom
       Tel. +44 1414830215, Email: iain.masterson@scottishwater.co.uk
       Main Address: https://www.scottishwater.co.uk/, Address of the buyer profile: https://www.scottishwater.co.uk/
       NUTS Code: UKM


I.6) Main Activity (in the case of a notice published by a contracting entity)
      Water

Section II: Object

II.1) Scope of the procurement
   
   II.1.1) Title: Private Wire - Power Purchase Agreements.
      Reference number: Not Provided
      
   II.1.2) Main CPV code:
      09310000 - Electricity.
   
   II.1.3) Type of contract: SUPPLIES
   
   II.1.4) Short Description: Power Purchase Agreements (PPAs) for power provided to Stirling WWTW and Dalmarnock WWTW via private wire from onsite CHP units. The CHP units are being sold by Scottish Water Horizons Limited to Noventa - Helix Heat & Power I Ltd and Noventa - Helix Heat & Power II Ltd. As SW has on ongoing requirement for onsite power generation, PPAs will be placed with the new asset owners. The PPAs will be in place until 2040 with extension options to 2049.
   
   II.1.6) Information about lots
      This contract is divided into lots: No

   II.1.7) Total value of the procurement (excluding VAT)
      Value: 54,000,000      
      Currency: GBP


II.2) Description

   II.2.2) Additional CPV codes:
      Not provided

   II.2.3) Place of performance:
      UKM SCOTLAND
   
   
   II.2.4) Description of the procurement:
    Power Purchase Agreements (PPAs) for power provided to Stirling WWTW and Dalmarnock WWTW via private wire from onsite CHP units. The CHP units are being sold by Scottish Water Horizons Limited to Noventa - Helix Heat & Power I Ltd and Noventa - Helix Heat & Power II Ltd. As SW has on ongoing requirement for onsite power generation, PPAs will be placed with the new asset owners. The PPAs will be in place until 2040 with extension options to 2049.    
   
   II.2.5) Award criteria
   (Directive 2014/24/EU / Directive 2014/25/EU)
               
    Not provided       
      
      
   II.2.11) Information about options:
      Options:    No       
   
   II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds:    No

   II.2.14) Additional information:
    Not provided    
      
Section IV: Procedure

IV.1) Description
   
   IV.1.1) Type of procedure: Negotiated procedure without prior call for competition (in accordance with Article 50 of Directive 2014/25/EU)          
   
   IV.1.3) Information about framework agreement
         The procurement involves the establishment of a framework agreement: No    
   
   IV.1.8) Information about the Government Procurement Agreement (GPA)
         The procurement is covered by the Government Procurement Agreement:Yes
         
IV.2)Administrative Information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: Not provided       
   
Section V: Award Of Contract/Concession
      
Award of Contract/Concession No: 1
Contract No: Not Provided    Lot Number: Not Provided    Title: Not Provided

V.2) Award of contract/concession
      
      V.2.1) Date of contract award decision: 25/02/2024.
      
      V.2.2) Information about tenders
      The contract has been awarded to a group of economic operators:Yes .

      V.2.3) Name and address of the contractor/concessionaire, No. 1:
          Noventa - Helix Heat & Power I Limited, SC795783
       Third Floor, Suite 2, Ink Building, 24 Douglas Street, Glasgow, G2 7NQ, United Kingdom
       NUTS Code: UKM
   The contractor/concessionaire will be an SME: Yes    
   
      V.2.3) Name and address of the contractor/concessionaire, No. 2:
          Noventa - Helix Heat & Power II Limited, SC795782
       Third Floor, Suite 2, Ink Building, 24 Douglas Street, Glasgow, G2 7NQ, United Kingdom
       NUTS Code: UKM
   The contractor/concessionaire will be an SME: Yes    
   
         
      V.2.4) Information on value of the contract/lot/concession:
         Initial estimated total value of the contract: 54,000,000          
         Total value of the contract/lot/concession 54,000,000         
         Currency: GBP

      V.2.5) Information about subcontracting:
         The contract is likely to be subcontracted: No          


Section VI: Complementary Information

   VI.3) Additional Information:
      To view this notice, please click here:
https://scottishwater.delta-esourcing.com/delta/viewNotice.html?noticeId=836757597
GO-2024226-PRO-25364788 TKR-2024226-PRO-25364787   
   VI.4) Procedures for review
   
      VI.4.1) Review Body
          Glasgow Sheriff Court
       1 Carlton Place, Glasgow, G5 9TW, United Kingdom
       Tel. +44 1414298888
   
      V1.4.2) Body responsible for mediation procedures:
                Scottish Water
       6 Buchanan Gate, Glasgow, G33 6FB, United Kingdom
       Tel. +44 8000778778.

      VI.4.3) Review procedure
      Not Provided    
      
      VI.4.4) Service from which information about the review procedure may be obtained
          Scottish Water
       6 Buchanan Gate, Glasgow, G33 6FB, United Kingdom
       Tel. +44 8000778778
   
   VI.5) Date of dispatch of this notice: 26/02/2024


Annex D2 - Utilities
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/25/EU

1. Justification for the choice of the negotiated procedure without prior publication of a call for competition in accordance with Article 50 of Directive 2014/25/EU

   No tenders or no suitable tenders/requests to participate in response to: No

   The contract involved is purely for the purpose of research, experiment, study or development under the conditions stated in the directive: No

   The works, supplies or services can be provided only by a particular economic operator for the following reason:
   
   Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: No
   
   Additional deliveries by the original supplier ordered under the strict conditions stated in the directive: No

   

   

   Procurement of supplies quoted and purchased on a commodity market: No

   Purchase of supplies or services on particularly advantageous terms: Not Provided

   Bargain purchase taking advantage of a particularly advantageous opportunity available for a very short time at a price considerably lower than market prices No


3. Explanation

   Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
   lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
   Scottish Water Horizons Ltd, a wholly-owned subsidiary of Scottish Water, owns and operates CHP plants on two Scottish Water sites (Stirling WWTW and Dalmarnock WWTW). These units produce power which is sold to Scottish Water by Scottish Water Horizons Ltd under an internal Group financial agreement. Scottish Water Horizons is in the process of selling the CHP units to Noventa - Helix Heat & Power I Ltd (Stirling WWTW) and Noventa - Helix Heat & Power II Ltd (Dalmarnock WWTW). Stirling WWTW and Dalmarnock WWTW have an ongoing requirement for the onsite power generated by these units. As these units provide power via a private wire it is only possible to purchase this power from the asset owner. There is no reasonable alternative to the provision of onsite power and so the asset owner of the existing CHP units has the exclusive right to supply power via the private wire. Scottish Water intends to contract with Noventa for the remaining 17 years of the initial PPAs in order to secure access to the onsite power generation up to 2040 (or 2049 including extension options). The advertised value is based on current energy costs and does not include forecast inflation. The contract price paid will be appropriately indexed over time.