Mayor looking for London DE output

December 2014: The GLA’s Investment and Performance Board (IPB) requested a further update on work by the organisation to take on ‘license lite’ status – also known as a ‘junior electricity supply license’. This was presented at the December meeting of the IPB – the paper available to download here.

Previous posts on the GLA’s work on ‘license lite’ can be read here. This new paper provides some further updates, specifically:

  • Following a tender process for a fully licensed supplier to support the GLA’s ‘license lite’ application (the tender for which was issued earlier this year), the IPB paper informs that a “successful tenderer” has been appointed. However – “No announcement has yet been made of the tender award” – though details  of the successful party are set out in an Appendix to the document for the IPB, but has been held back from the public as a ‘reserved’ document.
  • The next stage will be to source low carbon electricity output from London based generators. The document sets out that “Although there is a substantial interest amongst decentralised energy generators, procuring sufficient volume initially is not a foregone conclusion”. The GLA (via TfL) issued a tender for electrical generating capacity on 18 December – details of which can be seen here (Tenders Electronic Daily (TED) – 2014/S 246-433512) .
  • This tender highlights that “The GLA’s objective is that by this means it will facilitate decentralised energy generators in London in obtaining a better price for the electricity they export, rather than relying upon power purchase agreements entered into in the usual way.”
  • The IPB states that “The timing is for the remaining arrangements for licence lite operation to be put in place for a request for a Mayoral Decision to proceed to be made in February 2015, with a view to operation beginning in May 2015, subject to the decision being positive.”

Ofgem held a workshop on License Lite in November 2014, around a consultation they are presently undertaking on these junior license conditions. The webpage for workshop includes a presentation from the GLA, and also the GLA’s response to Ofgem’s consultation document. Both available here.

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