Transport for Greater Manchester (TfGM) has taken a significant step towards delivering the UK's first carbon-neutral public transport network after agreeing a long-term renewable energy deal that will help power the Bee Network while protecting against future energy price volatility.
The agreement, a Power Purchase Agreement (PPA) with renewable energy developer AGR Power, will provide TfGM with access to UK-generated clean electricity for up to 20 years. The move is designed to offer long-term price certainty, reduce operating costs and support the development of new renewable energy infrastructure.
PPAs allow organisations to lock in electricity prices directly from renewable energy producers, helping shield them from fluctuations caused by geopolitical tensions, supply chain issues and wholesale energy market volatility.
Under the arrangement, electricity generated from AGR's solar development at Burwell in Cambridgeshire will be exported to the National Grid, while TfGM secures access to an equivalent volume of renewable energy at a fixed, agreed price.
The deal covers 42 gigawatt-hours (GWh) of electricity annually, broadly matching the power requirements of the Metrolink network and accounting for more than half of TfGM's current energy consumption.
As Greater Manchester continues the transition to a fully zero-emission Bee Network bus fleet, energy demand is expected to increase substantially. TfGM has indicated that additional PPAs could be explored in future to support the electrification of the entire bus operation, including depots.
Supporting Net Zero Ambitions
The agreement forms a key element of Greater Manchester's wider ambition to create the UK's first carbon-neutral public transport system.
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.”
The PPA includes annual contributions to local charities We Love Manchester and Forever Manchester, supporting projects focused on education, employment, social inclusion, community resilience and environmental improvement across the city-region.
Future-Proofing Public Transport
Local leaders believe the arrangement strengthens both energy resilience and sustainability objectives while supporting investment in new UK renewable generation assets.
Cllr Tom Ross, Leader of Trafford Council and Greater Manchester 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.”
AGR's Burwell solar site, expected to become operational in 2028, is projected to displace approximately 19,600 tonnes of carbon dioxide annually while delivering biodiversity and habitat improvements across the Cambridgeshire area.
Supporting Fleet Electrification
The renewable energy partnership comes as the Bee Network accelerates the transition to zero-emission buses.
Around 40% of the fleet is expected to be electric by the end of this year, with five depots already electrified in Ashton, Bolton, Middleton, Oldham and Manchester's Hyde Road.
A further 170 zero-emission buses are currently on order, meaning almost half of Greater Manchester's franchised bus fleet is expected to be electrified by the end of the current financial year. The region remains on track to achieve a fully zero-emission bus fleet by 2030.
The programme forms part of Greater Manchester's broader strategy to improve air quality and reduce carbon emissions. Once complete, the transition is expected to eliminate more than 76,000 tonnes of carbon dioxide annually, alongside reducing 280 tonnes of nitrogen dioxide emissions every year.
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.”
Image credit: TfGM
