Bristol City Council approached LASER to assist in developing a more sustainable energy procurement strategy. LASER provided the council with an innovative compliant solution that enabled the Council to ‘sleeve’ electricity from their own renewable generation assets to power their own estate, while managing costs.
Bristol City Council is a unitary authority with a committee system in place; it has a population of 465,900 and is the seventh largest English city outside London. It is a rapidly growing city, with a diverse population, a successful economy and a commitment to protecting the environment.
To mitigate the price risks of volatile energy markets, Bristol City Council (BCC) needed to make changes to their energy procurement strategy. The council wanted to move away from committing to a fixed-term contract, where they were at risk of locking in energy supplies at high prices. Instead, they aimed to utilise renewable electricity from their wind turbines and solar farms to power their estates, manage costs, and take advantage of their low-carbon electricity supply. In early 2022, the council sought to partner with an energy expert to support all aspects of utility procurement, and provide expert guidance in the complexities of Power Purchase Agreements, which is why LASER were the perfect fit. LASER provided the council with an innovative compliant solution that enabled the Council to ‘sleeve’ electricity from their own renewable generation assets to BCC sites.
Bristol City Council was trying to take an innovative approach during a period of unprecedented turmoil in the energy markets. LASER’s adaptability and their willingness to work with us to create a new solution meant that we were able to make full use of our own generation assets in meeting our energy needs, building the foundation for a more ambitious approach to zero-carbon electricity supply.
LASER already delivered flexible contracts for BCC’s gas and small electricity supplies through our fully compliant flexible energy frameworks. BCC felt it was the best option to use the flexible framework to secure a sleeving PPA arrangement because it saved time and cost on the tender process and allowed for a customised procurement strategy to meet their specific needs. Together, we worked with the council to streamline the complexities of PPAs and create a bespoke procurement strategy to facilitate a sleeved PPA, enabling the council to buy and sell their renewable power in a way that provides financial stability and control.
The LASER trading team manages the import of electricity to BCC sites and the export of electricity from BCC’s renewable generation assets. They take seasonal fluctuations into account and balance any consumption and supply mismatch. Currently, BCC’s generation assets supply approximately 85% of their half-hourly metered electricity demand, leaving a 15% shortfall. Our trading team covers the shortfall by purchasing energy from the grid through the PPA sleeving arrangement.
By using LASER’s flexible procurement framework, the council benefited from the following:
Public sector bodies who have invested in large-scale renewable generation should also be able to utilise the assets to manage their electricity spend. Not only do these assets directly impact decarbonisation of the grid and the organisation’s estate, it allows them to have more control over their energy spend at a time of high market volatility. We see ‘sleeving’ as a key solution for public sector decarbonisation.
Through the sleeved PPA, BCC maintain control over pricing and balance between import and export activity.
By using the renewable power it generates, BCC is reducing its environmental impact and energy spend.
LASER’s bespoke basket approach provided BCC with a tailored solution – giving them complete control of the energy they generate for their own needs, while providing energy security.
Bristol City Council was one of the first to adopt a sleeving arrangement of this kind for a local authority, setting a new standard for local authorities and gaining recognition for its renewable supply solutions, facilitated by LASER’s innovative procurement solutions. Building on this success, LASER is continuously working with BCC to enhance the current Sleeved PPA arrangement by incorporating additional generation in the sleeving. This would allow more of BCC’s electricity demand to be met from other local zero-carbon electricity generation.
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