AGR Power partners with Manchester City Council in Power Purchase Agreement

AGR Power has secured a landmark 15-year virtual Power Purchase Agreement (vPPA)with Manchester City Council, positioning it as one of the pioneering local authorities in the UK to embrace a PPA for sustainable energy. This will enable the Council to cut its greenhouse gas emissions, save money and protect against future price rises.

Under the agreement, Manchester City Council will acquire electricity at a fixed rate directly from AGR’s new solar farm development, located at Bicker Fen near Boston, Lincolnshire. AGR Power will own and operate the facility, contributing to a significant supply of ‘green’ energy to the National Grid. The 97.3-hectare site already has planning permission and construction has commenced, with the vPPA due to go live by September 2025.

The vPPA will provide up to 35GW per year to meet the majority of the Council’s electricity requirements, including powering buildings, street lighting, and electric vehicles. AGR looks forward to a successful and transformative partnership with Manchester City Council as both entities contribute to a cleaner, greener future .

The Council is currently developing its Climate Change Action Plan for 2025-30, setting out how the council will build on the achievements of the current 2020-25 plan and continue to reduce its emissions. The vPPA will be a core part of this.

The Climate Change Action Plan sets out how the Council will meet its organisational goal of becoming zero carbon by 2038, in line with the wider city target and influence others to reduce their carbon emissions. While it is currently on track to meet its organisational reduction target for 2020-25, staying on the right reduction path from 2025 onwards is only possible through greater involvement in renewable energy generation.

As part of the deal, AGR has committed to delivering social value benefits in Manchester, including supporting the We Love MCR charity in its work with young people in the City through its Rising Stars Fund.

AGR has successfully delivered more than 1.1GW of renewable energy projects in the UK, saving more than 350,000 tonnes of carbon emissions and powering over 250.000 British homes. This project in particular is the first of AGR’s wider portfolio of 200MW+ of solar projects which the company is planning to construct and operate by 2026. AGR's efforts are supported by its co-owner, Railpen, one of the largest pension managers in the UK, responsible for managing £34 billion of assets on behalf of over 350,000 members.

‍Councillor Tracey Rawlins, Executive Member for Environment, said: “This is a milestone agreement which has taken a huge amount of work to conclude.

“It’s good for the Council and Manchester people – saving money and improving our energy security – and crucially it’s good for the planet at the same time, enabling us to save more than 35,000 tonnes of harmful carbon emissions. I also welcome the fact that AGR Power have embraced our requirement that council spending generates extra benefits for Manchester people.”

Oliver Breidt, AGR Power Co-Founder, said: “AGR is incredibly proud to work with Manchester City Council on a landmark agreement to support the decarbonisation of one of UK’s largest cities and providing support to local communities. The agreement is an important cornerstone in our own development to become a key power provider to UK cities, councils, and businesses, which are committed to reducing their energy costs and carbon footprint.”