The Governing Board of the Madrid City Council has authorized a new contract for the supply of electrical energy with a guarantee of 100% renewable origin for municipal buildings and equipment, as well as its autonomous bodies. This new contract, set to begin on September 1, 2024, will serve the City Council, Madrid Health, the Madrid Tax Agency, and the Employment Agency. It expands upon the current contract, which expires on August 31, 2024, enhancing its management and execution.
The contract, managed by the Government Area of Economy, Innovation, and Finance, is valued at €75.2 million. It is set for a 28-month execution period, concluding on December 31, 2026, an extension of four months compared to the existing contract. The contract allows for extensions up to a maximum of two years.
A key requirement of the new contract is that the successful bidder must prove that 100% of the electricity supplied originates from renewable energy sources. This condition, previously guaranteed by technical solvency, ensures that all energy delivered under the contract is from renewable sources. The contract also introduces price updates during specified periods, though prices will not be revised in case of an extension, differing from the current contract.
This initiative aligns with the City Council’s commitment to renewable energy and cost savings for municipal buildings and offices, part of a broader strategy initiated by the Government Board on June 16, 2022. This strategy aims to implement urgent measures for energy savings and efficiency in response to rising energy costs.
In 2023, the first year following the approval of these measures, the Madrid City Council generated approximately 3.95 GWh of solar energy across its buildings and facilities, resulting in nearly €2.8 million in energy cost savings. Specifically, electricity and gas consumption was reduced by 10%, saving almost €1.5 million on electricity and €1.3 million on natural gas.
The new contract also aims to address the dynamic nature of the Spanish electrical system and the diversity of supply types and consumption. Unlike the current contract, which divides supplies into lots, the new contract will be awarded based on the lowest average price weighted by consumption.
Additionally, the new contract introduces a change in the payment regime. The existing contract employs a fixed monthly fee with an annual adjustment, whereas the new tender will use monthly invoices based on actual consumption.
This contract represents a significant step in Madrid’s ongoing efforts to enhance sustainability and energy efficiency within the city’s infrastructure.
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