Purpose

Following a procurement process, this report seeks approval for the award of contract to Power Up North London Limited (PUNL) to deliver a community energy concession contract, commencing on 27th July 2026 for a period of 20 years and an estimated concession value of £990,000. The concession contract has been valued based on the estimated total revenue to be generated by the concession, for 8 sites and any additional sites.

The contract is a below threshold concession contract, where the concessionaire will generate income from the installation of solar panels on the Council’s buildings.

The concessionaire will raise finance to fund and oversee the installation of solar and other energy saving technologies on Council buildings, schools and leisure centres.  The approach removes the need for capital investment by the Council and leads to the host building benefitting from improved energy efficiency.

A concession contract agreement will be entered into with the successful tenderer, and then individual tripartite licence agreements will be agreed between the Council, the Concessionaire, and the Occupier of each premises where solar energy installations are made, throughout the term of the Concession agreement. Additional sites may be identified throughout the term.

The Licence agreements may commence at different points during the concession contract and may vary in length from 5-20 years provided always that they conclude by the date at which the 20 year concession contract term concludes. A 15-year term is typically required as this is usually the time required to service finance.

The contract award report is being presented to the Director of Environment and Sustainability for approval in line with Contract Standing Orders. 

Decision

THAT the award of the community energy concession contract to Power Up North London Limited for a period of 240 months for the estimated concession value of £990,000, to commence in July 2026, be approved.