Scottish Water has gone out to tender to put a Dynamic Purchasing System (DPS) framework contract in place for the supply of solar panels worth an estimated £20 million.

Thewater company is looking to engage with potential suppliers of solar panels through the use of a Dynamic Purchasing System (DPS). The DPS will support the ethical sourcing of a supply chain for solar panels, including:

verification and review of the names and location of the proposed supply chain down to raw material level due diligence conducted on the supply chain

traceability and segregation protocols to ensure the ethical sourcing of the proposed solar panels

The purchase of the solar panels may be completed by either Scottish Water, Scottish Water Horizons, or approved Framework suppliers.

Scottish Water Horizons have committed to deliver 90GWh of new renewable energy generation projects across all aspects of the SW estate, employing a variety of established and emerging technologies and are seeking companies to deliver the schemes.

The programme will be delivered over an estimated 10 year period with installations varying from small-scale 25 - 50kW installs to large projects normally not greater than 5MW. In certain circumstances some projects may exceed 5MW - however these will be the exception, while some projects will require innovative technologies that are not yet fully developed.

Scottish Water currently has a framework in place for the supply, design, and installation of renewable power generation assets. Theframework agreement currently has four suppliers who have been working with Scottish Water Horizons since 2021.

However, due to concerns over the sourcing of the solar panels under this agreement there has been a suspension of projects until ethical sourcing can be found.

In August 2023, the Scottish Water Board of Directors made the decision to pause all solar projects which had not reached Gate 70 (investment approval stage) due to concerns regarding forced labour within the supply chain of these products, namely the usage of forced labour in Xinjiang to produce the raw materials for the panels.

Since then, the Procurement and Supply Chain (PSC) function have continued a due diligence exercise to try and source an ethically clean supply chain and to gain a deeper understanding of any legislative and industry changes which could lead to clean supply routes opening in the future.

Suppliers can apply to join the DPS at any time during its lifetime, which will run for eight years until 31 August 2032. However, Scottish Water reserves the right to review and amend the duration of the DPS during its lifecycle. There are no limitations to the numbers of suppliers who will successfully be admitted to the DPS – and all suppliers will be invited to tender for further competitions under the agreement as and when required. The forecast value of the DPS is an estimated based on the programme of work which is supplied in the tender documentation.

Click here to access the DPS framework documentation.