Clean energy agreement moves Greater Manchester closer to carbon-neutral public transport system

Greater Manchester has taken the next step in its ambitions to deliver a carbon-neutral public transport system after agreeing a long-term deal for UK-generated clean energy.

Transport for Greater Manchester (TfGM) is entering into a power purchase agreement (PPA) with AGR Power which will provide energy cost certainty and helping unlock investment in new renewable energy infrastructure for up to 20 years. The deal sees the city-region buy renewable energy at a fixed price from the producer, protecting it against future spikes in energy prices.

Under the proposed agreement, the renewable electricity generated by the project would be exported to the National Grid. In return, TfGM will benefit from a long-term supply of renewable energy at an agreed price, helping to create new renewable energy that would not otherwise be generated.

The amount of energy secured by TfGM, which will be provided from AGR’s solar development in the east of England, is for 42 gigawatt-hours (GWh) of energy a year, broadly equivalent to the amount of power currently used to run the Metrolink network and over half of TfGM’s current energy usage.

If the deal is successful, TfGM may explore future PPAs to cover the needs of a fully zero-emission bus fleet.

Bev Craig, Mayor of Greater Manchester, said:

“This is brilliant news and means that Greater Manchester is leading the way in this field yet again.

“By securing homegrown renewable energy for the long term, we’re protecting passengers and taxpayers from rising energy costs while helping to power the Bee Network with clean energy.

“This agreement with AGR also means more money going back into Greater Manchester communities through local charities, delivering real social value alongside economic and environmental benefits.

“We’ve set ourselves a big ambition to create the UK’s first carbon-neutral public transport system, and partnerships like this one with AGR show we’re getting on with the job.”

Cllr Tom Ross, Leader of Trafford Council and GM Portfolio Lead for the Green City-Region, said:

“Homegrown renewable energy will provide a win-win situation for us. It will give us green, clean energy, help protect residents from energy costs rises and result in more money going back into our communities. 

“By securing clean energy for the long-term, we are helping to future-proof the Bee Network while supporting new renewable infrastructure here in the UK.

“We are embracing the future right now, and we look forward to working with a partner in AGR who shares our commitment to making our public transport cleaner, greener and more resilient for the future.”

Oliver Breidt, Founder of AGR, said:

“Partnering with an organisation of TfGM’s scale and ambition demonstrates the growing role that renewable energy developers like AGR play in supporting the UK’s public sector price security and decarbonisation goals.

“The agreement reflects our broader commitment to the local communities and projects that support long-term prosperity and innovation. This landmark agreement underlines our continued investment into United Kingdom, and we are proud to be working with TfGM on their net-zero journey.”

The Bee Network is on track to having a fully zero-emission bus fleet by 2030, with around 40% of buses expected to be electric by the end of the year. Working closely with bus franchise operators, TfGM has electrified five depots in Ashton, Bolton, Middleton, Oldham and Manchester (Hyde Road).

With 170 further zero emission buses now on order, almost 50% of the large franchise fleet is expected to be electrified by the end of this financial year, supporting the trajectory towards 100% by 2030.

This forms part of Greater Manchester’s investment-led approach to improving air quality by making the Bee Network a cleaner, greener and more reliable public transport system. This transition will cut more than 76,000 tonnes of carbon dioxide – equivalent to the emissions linked to powering more than 9,000 homes or charging 9 billion smartphones – and 280 tonnes of nitrogen dioxide per year.