Financial Consultancy for Solar Power Development Company Setup and Sale

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CROWN COMMERCIAL SERVICE awarded a contract to KPMG LLP for financial consultancy on solar power provision on the government estate.

The project aimed to identify appropriate sites across government rooftop and brownfield estate for solar generation to maximize returns through reduced energy costs and rental payments.

The consultancy comprised two phases: Phase 1 involved validation of the financial model in the Outline Business Case, financial modeling for project-specific economics, benchmarking of commercial development fees and profit margins, payment flows, taxation, balance sheet treatment, State Aid considerations, CfD bidding tactics, and funding options.

Phase 2 included assistance with the possible sale of the government-owned solar development company (DevCo), including soft market testing, development of a commercial structure, preparation of the financial model, evaluation of bids, and assessment of options for a full exit, including contributing to the Final Business Case.

The supplier may also advise on funding for individual projects in the transitional phase.

The contract was awarded as a call-off from the Consultancy One framework contract, under Lot 4.1 (Corporate Finance and Financial Strategy).