The Government’s Spending Review has announced £300m in funding to support up to 200 heat networks across the country, opening the door to £2 billion of infrastructure investments in UK cities. These heat networks will generate enough heat to support the equivalent of over 400,000 homes and leverage up to £2 billion of private capital investment.
The Carbon and Energy Fund is a first choice partner for Public Sector District Heating Network schemes
Created by the Public Sector for the Public Sector the Carbon and Energy Fund (CEF) is a membership organization that has been entrusted to deliver Energy Performance Contracts and District Heating Projects for its membership, which includes over 50 organisations from the NHS, Central and Local Government and Universities, We are a recognised leader within the sector with a proven track record of more than 50 schemes. We have helped our clients to overcome major barriers in delivering energy efficiency projects, including constrained budgets and reticence over the concept of procuring Energy Performance Contracts (ESCOs).
Our Procurement Framework Panel Solution
We have procured a Framework Panel of sixteen contractors, all of whom are experienced in the energy efficiency and District Heating Network sector. The Panel was procured through a full UK Procurement Regulations Compliant process with a scope to cover all local authorities and other public bodies in the UK. It is therefore available for the entire Public Sector for Non Domestic Energy Efficiency, Renewable Energy and District Heating Projects. One particular advantage of our Framework Panel for the Public Sector is that a mini competition can be called off under the Framework Panel, thereby saving significant time and cost as compared with running a full scale public procurement.
Our Document Pack Solution
As part of our Framework Panel solution, we have developed a standard form Project Agreement for use in District Heating Projects and other larger scale energy efficiency projects. This Project Agreement has been tested in the market as workable for a District Heating Project, has been accepted as a “standard form” by our Framework Panel contractors, and contains a risk allocation that is based on SOPC standard form, but bespoked to provide an optimal risk allocation for funding purposes. Our partner law firm is familiar with our Document Pack and can provide our Members with streamlined and efficient legal advice based on this Document Pack, as compared with the costs of drafting a completely bespoke set of documents for each individual project.
Our Funding Solution
We have developed a supply chain of funders who are familiar with the risk allocations contained in our Document Pack, and with the energy efficiency and District Heating Network Sector, and who can provide funding for your projects on highly competitive terms, based on our standard form Project Agreement risk allocations. These terms can provide finance solutions that are more competitive than PSLB debt and typically 50% less than project finance debt. We are one of the largest enablers of EPC finance to the Public Sector.
Our Cradle to Grave Project Management Solution
We offer a cost and time efficient project management envelope solution that works with Local Authorities to create a project team with the skills to manage a scheme from concept and feasibility to tender, construction and ultimately, monitoring and verification. Our support includes project management and specialised technical, financial and balance sheet advice throughout the entirety of the project.
Cost and Time Effective Procurement and Finance
On a typical £10M scheme, the CEF envelope solution can save anywhere between £75,000 to £250,000 when compared to similar value schemes procured independently. Another crucial benefit with using CEF is the time saving factor. Because we have our own in-house document templates, sub-contracted or in-house lawyers, engineers, project managers and a pre-qualified contractor panel, our whole process is finely tuned, fast and efficient, typically saving clients 12-18 months of valuable time. There are no fees to pay to CEF until a Members’ Board agrees to appoint a preferred bidder.
