Procurement rules see city council reconsider approach to buying energy from community groups

Bristol City Council has been forced to rethink a plan to buy energy from community groups after advice that this might fall foul of public procurement rules.

Its Environment and Sustainability Committee last year approved a new approach for contracting for the council’s electricity supply, known as the ‘sleeved pool’ model, with a spend of £33m over four years.

This was based on ‘pooling’ locally generated zero-carbon electricity to be shared between the council and other customers.

Early engagement meetings with potential suppliers confirmed interest, but “issues have emerged over securing the generation of renewable electricity for his arrangement”, a report by John Smith: executive director for growth and regeneration, said.

It explained that electricity was intended to come from the council’s wind turbines and solar farm, from new large-scale and rooftop renewable energy systems being developed by Ameresco through the ‘City Leap’ project, and from local community groups and commercial renewable-energy generators.

“However, legal advice indicates that public procurement regulations may affect limiting the generation contract geographically or by bidder type,” Mr Smith’s report said.

“This would mean either opening the generation tender up to UK-wide bidders, undermining the City Leap deliverable of a localised smart low carbon energy system, or limiting generation to just [the council] and Ameresco owned systems, excluding community groups.”

Officers have worked with Ameresco to develop an alternative approach, under which Ameresco - which is not bound by public sector procurement regulations - would set up the pool of generation suppliers.

The council agreed to extend its call-off contract under the Laser Energy framework to maintain supplies until the sleeved pool can be set up given the delay to meet the procurement rules.

Bristol City Leap is a partnership between the council and Ameresco UK to accelerate green energy investment in the city.

It is intended over the next five years to deliver nearly £500m of low carbon energy infrastructure, to help Bristol meet its target of becoming carbon neutral by 2030.

Mark Smulian