Madrid City Council approves new renewable energy contract worth €75.2 million for municipal buildings

The Governing Board of the Madrid City Council has approved a new contract for the supply of electricity with a guarantee of 100% renewable origin for municipal buildings and facilities, as well as its autonomous bodies. The new contract, which is scheduled to start on September 1, 2024, will serve the City Council, the Madrid Health Service, the Madrid Tax Agency and the Employment Agency. It extends the current agreement, which expires on August 31, 2024, by streamlining its management and implementation.

The value of the contract, managed by the Government Area of ​​Economy, Innovation and Finance, is EUR 75.2 million. It was concluded for a 28-month implementation period, ending on December 31, 2026, which is an extension of four months compared to the current agreement. The agreement allows for an extension of up to two years.

A key requirement of the new contract is that the winning bidder must prove that 100% of the electricity supplied comes from renewable energy sources. This condition, previously guaranteed by technical solvency, guarantees that all energy supplied under the contract will come from renewable sources. The agreement also introduces price updates in specified periods, but prices will not change in the event of an extension that deviates from the applicable agreement.

This initiative is part of the City Council’s commitment to renewable energy and cost savings in council buildings and offices, which is part of a wider strategy launched by the Executive Board on June 16, 2022. This strategy aims to implement urgent energy saving and efficiency measures in response to rising energy costs.

In 2023, the first year after the approval of these measures, the Madrid City Council generated approximately 3.95 GWh of solar energy in its buildings and facilities, resulting in savings in energy costs of almost €2.8 million. In particular, electricity and gas consumption were reduced by 10%, saving almost €1.5 million on electricity and €1.3 million on natural gas.

The new agreement also aims to take into account the dynamic nature of the Spanish electricity system and the diversity of types of supply and consumption. Unlike the current contract, which divides supplies into lots, the new contract will be awarded on the basis of the lowest consumption-weighted average price.

Additionally, the new contract introduces a change in the payment method. The current contract includes a fixed monthly fee with annual adjustments, while the new tender will involve monthly invoices based on actual consumption.

This order represents a significant step in Madrid’s ongoing efforts to improve the sustainability and energy efficiency of the city’s infrastructure.

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