MAG Airport Limited is looking for a long term energy supplier for its three airports (Manchester, Stansted and East Midlands), which currently have a consumption of over 210GWh from the grid.
MAG wants to secure long-term competitive price and demand hedging for up to 20 years from April 2024. That will include a Power Purchase Agreement (PPA) programme with one or a small number of renewable energy generation parties to provide new generation by end of 2024, as well as onsite solar power generation, now in development.
The new energy supplier will be required to act as a sleeving agent to support MAG in managing its existing and new PPAs and achieving its ambition to achieve carbon neutrality by 2038. The existing PPAs are expected to provide 65-75GWh per annum from 2025, while new offsite PPAs will generate a further 100-140GWh per annum from 2024.
MAG also wants balancing and shaping services to facilitate a seamless sleeve of baseload power into MAG’s import hedging structure.
MAG says that although its long-term strategy calls for additionality, it will allow for bids from existing assets.
The £750M contract may be split into lots covering the existing and new-build assets and the power supply contract.