Pilot GPP: “Green Electricity Supply for Cadiz Provincial Government”

Provincial GovernmentIn 2013, the Economic Services Department, through the Energy Agency as Energy Management Unit, developed different activities to adapt the Provincial Government of Cádiz electricity supplies to the new legal requirements. These activities drove to several improvements like:

  • New free market electricity supply contract.
  • Electric powers modification and technical requirements adaptations.
  • Change of ownership and supply contract cancellations.

As a result of these actions the electricity cost decreased 83.332 €/year.

After a first stage to “update” Provincial Government’s electricity supply, the Energy Agency started to work in a new contract in the frame of GreenS project. This second stage had two main objectives: to decrease government’s electricity bill and to reduce greenhouse gas emissions and environmental impacts due to electricity consumption. For this purpose a new tender was launched in 2016 with the following characteristics:

Description

Electricity supply for the Provincial Government of Cádiz by a retailer company. The supply includes 2.824.327,60 kWh per year for 64 facilities owned by the Provincial Government or external agencies.

Total value of the contract

2.618.702,50 €

Execution time

24 months, with the possibility of another 24 months extension.

Award criteria

 

  • Price
  • Reactive Power Compensation through Capacitor bank installation to avoid penalty charges.
  • 100% renewable electricity supplied, backed by certificates of renewable energy guarantees of origin.

Four offers were received. The contract was finally awarded to AURA Energy for 1.218.703,86 €.  The Provincial Government of Cadiz formalized the new electricity supply contract for all its buildings and facilities (including office buildings, schools, nursing homes, etc.) in October 2016.

As a result, 2016’s electricity contract lead to a energy price reduction of 11,4%  (this is 33.040 €/year). Additionally, the new contract includes the reactive power compensation through capacitor bank installation in 9 buildings to avoid penalty charges (this is another 21.350 €/year).

AURA Energía, the awarded company, is providing electricity produced from 100% certified renewable resources like wind, biomass or photovoltaic. This new contract means a real breakthrough in the annual reduction of CO2 emissions to the atmosphere, contributing to achieve government goals’ against climate change and environment protection. According to the estimations, this action is saving 1.127 tons of CO2 emissions per year with no additional cost for the provincial administration.

The Provincial Energy Agency has supported this procurement process, advising the green criteria introduction in tender procedure. This action has been developed as a pilot experience in the frame of GreenS European project and will be use as an example to be replicated in other European administrations.