£300m of funding for District Heating Network schemes

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 40 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 OJEU procurement 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.

Track Record

The CEF solution has a proven track record through:

  • Our ability to procure the Crown Commercial Services Solar Scheme
  • Our partnering with Manchester City Council to deliver multiple District Energy Schemes
  • Our involvement in the Oxford University Hospital DH Scheme Enablement
  • Our Procurement of EPC/ESCO projects for joint Authority projects in excess of £30m capital value

Who are the CEF?

Launched by Greg Barker MP at IHEEM in 2011, the Carbon and Energy Fund (CEF) has been specifically created to fund, facilitate and project manage complex energy infrastructure upgrades for the NHS and wider Public Sector.
The CEF was co-created with the Department of Health. It is a special purpose vehicle allowing different parts of the Public Sector and NHS to work together. It employs an experienced team drawn from the NHS, National Services Scotland, National Procurement, NHS Strategic Buying Solutions, Oxford AHSN and The Countess of Chester Hospital. In addition to Health it has been chosen as the procurement vehicle for the Cabinet Office Public Sector Solar Scheme and Manchester City Council District Energy Program.
The route to working with the CEF is to seek membership, which then makes all the support of the CEF available to the New Member for the entire procurement, installation and savings monitoring period of the contract.
With a proven track record of more than 40 projects and in-depth experience of procurement, engineering, legal and finance, the CEF is the organisation to successfully guides Public Sector clients through the complex processes involved.

Energy Infrastructure Upgrades

  • Created by the NHS for the NHS and Public Sector
  • Efficient and proven OJEU compliant procurement process
  • Access to a £300m+ fund of capital funding
  • The widest choice of ESCo contractors in the UK
  • CEF provides all the specialist skills and resources
  • No up front fees
  • TDA approved procurement process
  • A track record of 40+ successful UK projects to-date