Network Rail is seeking an energy provider to supply renewable energy of between 0.5TWh and 1TWh per year for the next 25 years.  The contract is said to be worth up to £1.25bn and will be procured through a corporate power purchase agreement.  The commencement of this renewable energy contract will be circa 2026.

Network Rail is one of the biggest purchasers of electricity in the UK and consumes around 4.5TWh per year, of which 4.1TWh is used for traction. However, now that the UK government have set a legal commitment to reach net zero by 2050 Network Rail is committed to supporting the government with this goal.

Network Rail is primarily looking to purchase between 0.5TWh and 1TWh per year over a period of 25 years.  If the contracts full length is agreed then it’s estimated to be worth £1.25bn which could be supplied by one or a number of suppliers and also come from one or various assets.

Network Rail will be absorbed into Great British Railways in 2024 as the government looks to reform the rail industry.  So, with this in mind Network Rail is currently notifying potential suppliers of the tender process which is expected to launch officially in 2023.

Image Credit HS1