Defence Online

Type of document: Contract Notice
Country: United Kingdom
Publication Ref: 034135/S 000-2026
Nature of contract: Service contract
Procedure: Not specified
Regulation of procurement: Not applicable
Type of bid required: Not applicable

UKPGA UK2: Preliminary Market Engagement Notice

I) Contracting Authority/Entity
I.1) Name and addresses
Official name: Defence Infrastructure Organisation
National registration number: PPWG-8368-RJMG

Postal address: St George’s House, DMS Whittington
Town: Lichfield
Region: Staffordshire CC
Postal code: WS149PY
Country: United Kingdom

Email: DIOComrcl-FEP@mod.gov.uk

I.4) Type of the contracting authority
Public authority – central government

II) Object
II.1.1) Title
Onsite Direct Wire Power Purchase Agreement Pilots
Reference number: ocds-h6vhtk-0660b3

II.1.3) Type of contract
Services

II.1.4) Short description
Objectives: The Ministry of Defence (MOD) is seeking Power Purchase Agreements (PPA) to reduce unit electricity costs, increase site energy resilience, limit price volatility risk from its energy portfolio, and support emissions reduction aligned with Government policy.
PPA Type: Renewable energy supply for up to five sites via on-site direct wire connection.
Target start date: Target contract start date 31/03/28.
Volume: Procure power generation to meet up to approximately 4–12 GWh/year of combined electricity consumption across the portfolio of sites. Provision of higher offtake volumes is dependent on the ability to demonstrate value for money in energy costs achieved and resilience provision. The site portfolio is expected to have a total annual demand of approximately 35 GWh/year. The details provided in this notice are early indicative estimates and may be subject to change/refinement based on final site selection and ongoing data collection.
Sites: Potential sites may include up to five sites suitable for on-site, direct wire connection utilising MOD land in the South of England, shortlisted from a longlist of ~30 identified sites throughout the UK.
Contract duration: Seeking competitive energy prices for up to 25 years, with potential option to extend. The estimated contract dates are 31/03/28 to 30/03/53.
Technology: Open to competitive proposals for Renewable Energy Guarantees of Origin (REGO) compliant technologies, with technology choice subject to site-by-site requirements and MOD review.
Previous market engagement: A virtual two‑hour supplier engagement session was held on 04/03/2025 to test early market views on high‑level PPA options and to support MOD’s understanding of market capabilities. Suppliers expressed strong appetite to engage and highlighted key considerations including avoiding over‑specification, clarifying roles and responsibilities, and addressing grid‑connection and MOD site factors that will shape the delivery approach.

II.1.5) Estimated Total Value
Value (including VAT)
296,295,754
Value (excluding VAT)
246,913,129
Currency
GBP

II.2) Description
II.2.1) Title
Contract/Lot No
1

II.2.2) CPV codes
Main CPV code
71314000

II.2.7) Contract dates (estimated)
Start
2028-03-31 00:00
End
2053-03-30 23:59
Duration
25 years

VI) Complementary information
Link to source/bidding documents

VI.5) Date of dispatch of this notice
2026-04-15 12:04

VI.6) Engagement information
Engagement deadline
2026-06-05 23:59
Engagement process description
Preliminary Market Engagement (PME): MOD is seeking to undertake PME to better understand common market practices and to refine the approach for a potential future procurement. MOD would greatly appreciate your engagement and assures suppliers that all responses will be carefully considered but will not bind MOD to any particular approach to the procurement, nor will responses be treated as conveying any promise or commitment on the part of the respondent.
Preliminary Market Engagement will include:
A) A mandatory Market Sounding Questionnaire (MSQ). To have your feedback considered, your completed MSQ must be received by 12:00 noon on 06/05/26.
B) Virtual interviews, informed by responses to the MSQ. To be considered for interview, you must submit a completed MSQ by 12:00 noon on 06/05/26. Interviews will be arranged after this date, and suppliers will be contacted directly.
C) An optional virtual Supplier Day will be scheduled following the interviews. The Supplier Day will be open to all interested parties, regardless of MSQ completion.
To request a link to the MSQ and to register your interest in the Supplier Day, please email DIOComrcl-FEP@mod.gov.uk, confirming that your interest relates to the on-site PPA. You can register your interest in participating in virtual interviews within the MSQ.
The purpose of the MSQ is to gather insights from the market and identify parties for virtual interview. Virtual interviews will use a standardised question set. Due to anticipated demand and MOD staff capacity, parties invited to interview may be limited to suppliers identified through the MSQ that:
A) Are a renewable energy developer,
B) Hold on-site, direct wire PPA development experience in the UK, and
C) Have PPA development experience with projects of a similar size. If required, developers will be prioritised for interview based on extent of relevant experience, to maximise insights gathered.
MOD may conduct multiple interview rounds and adjust the engagement approach or timelines as the PPA programme progresses. PME is intended to be closed by 05/06/26.
Any information shared by MOD during the Supplier Day and/or other market engagement will be made publicly available to all parties as part of the UK4 tender notice, should the procurement proceed.
PME will have no bearing on which suppliers will be invited to participate the tender process. Furthermore, it does not constitute a commitment by the Ministry of Defence to initiate any public procurement activity. This engagement will be conducted in line with the principles of equal treatment, non-discrimination and proportionality under the Procurement Act 2023.
Social Value (SV): SV is a mandatory consideration in UK Government procurement. Any future tender will be assessed against the Government’s Social Value Model, ensuring delivery approaches contribute meaningful economic, social, and environmental benefits. Specific Model Award Criteria (MACs) to be utilised within the tender process will be confirmed should the requirement be taken forward.
Conflict of Interest (COI): All suppliers must identify and disclose any actual or potential COI at the earliest opportunity. This includes any relationships, prior involvement, or circumstances that could affect impartiality. For transparency purposes, if you have a potential or known COI, you must email DIOComrcl-FEP@mod.gov.uk
Modern Slavery: MOD must consider the potential of modern slavery at all stages of the procurement lifecycle. Please note this information will be required as part of the procurement process and throughout the ongoing contract. Suppliers will need to complete a Modern Slavery Assessment Tool (MSAT) but is not required at this stage.
Please note, Clarification Questions are not open at this time.
The DIOComrcl-FEP@mod.gov.uk multi-user address should be used to register interest in attending the Supplier Day, requesting access to the MSQ (and any technical related issues) and / or COI declarations only. Direct or indirect canvassing of any MOD employee or agent concerning this requirement, or any attempt to procure information from any MOD employee or agent outside of the formal process described in this document will not receive a response.