Local authorities in West of Scotland are set to become the UK's biggest consumers of green electricity as part of a £78 million energy deal with ScottishPower.

The authorities' buying organisation (abc), Scotland's largest public sector purchasing agency, has contracted to take 112 Gigawatthours of energy a year equal to the output of two average-sized windfarms in the single biggest purchase of green energy in the UK and the second biggest in Europe. (see note)

The green energy will be generated mainly at ScottishPower's windfarms and small hydro plants and will account for around one-fifth of abc customers' electricity consumption. It is being provided under a £78 million deal with ScottishPower to meet their total gas and electricity needs over the next two years.

abc will be saving around £450,000 on its exposure to the Climate Change Levy by signing up for green energy, which is exempt under the new arrangements to be introduced on 1 April. The levy will now have only a minor effect on abc councils. Emissions of the greenhouse gas carbon dioxide, the main cause of global warming, will be cut by around 48,000 tonnes.

The deal will secure the lowest electricity bills since '95 as well as economically-priced gas for the 12 Member Councils and other Associate member organisations, including Strathclyde Passenger Transport Executive, Police and Fire services.

abc is one of a growing number of organisations and businesses, including Edinburgh University, Fife Council and Thomas Cook Travel, plugging in to green energy generated mainly at ScottishPower's ten windfarms.

Over the next ten years the company will be making more green units available as it invests in new projects to increase its wind power capacity from 100 Megawatts to 500 Megawatts.

abc Director Ronnie McLean said: "It is very encouraging to be able to secure a deal that brings both costs and environmental benefits to our members. This year will see further progress for us as an exceptional public sector buying agency.

"The consortium had brought down the cost of a wide range of products, in addition to energy, which is by far the biggest item among the £130m worth of contracts we manage on our members' behalf", Ronnie added.

He said the benefits of the energy deal would be reflected in the cost of running the 8,500 premises including schools, council offices, libraries, leisure centres - and many other services provided by West of Scotland Councils to their 2.3 million customers.

Willie MacDiarmid, Managing Director of ScottishPower's Sales and Supply Business, said: "I am delighted we have secured such a prestigious contract which brings business to the company and at the same time means real savings for the councils and their communities.

"Green energy is proving increasingly attractive to businesses and ScottishPower is in the lead in helping our customers meet their environmental responsibilities. Our plans to expand our renewable energy portfolio will allow more businesses to sign up", he added.

Note : according to league table of deals published by the independent monitor of renewable energy use, greenprices.com. Europe's biggest green consumer is Swedish Railways.

Further Information:
ScottishPower Press Office
Gordon Laidlaw,                                0141 248 8200 (mobile 0850 634 841)
Colin McSeveny,                                0141 248 8200 (mobile 0850 884 815)

Photographer Paul Dodds                                    (mobile 0777 569 1846)

authorities buying consortium
Andy Gillan                                                                  (0141 287 6442)