Why it works

Although founded in 2011 the CEF has been 20 years in the making. It was born out of frustration and co- created with the Department of Health to halt the excessive expenditure by Trusts in procuring Energy Performance “type” Contracts. Traditionally Public Sector bodies would complete stand-alone procurements so contracts had to be purchased, consultants employed and contractors procured and once it was complete all the knowledge was lost. Then after construction the schemes typically started to underperform due to a lack of finance, contractual awareness and knowledge if things didn’t go as well as expected.

The CEF was created as a place to capture knowledge and to simplify the process so it could be repeated time and time again. The CEF provides all the necessary parts, the process to ensure that it is compliant and expedient but most importantly it provides the knowledge required to make it work.


The CEF has two contracts, they can be deemed as on or off balance sheet and via a lease or concession. The CEF contract has been approved by the TDA, Foundation Trusts, NHS Scotland and is soon to be approved by Local Authorities. It has been created over 20 years and is proven to work. The CEF will provide an in house legal team and a 3rd Party Law firm to ensure that the Authority is protected and that it is fair for all parties.


The CEF has typically up to £300m of capital available for projects via a panel of funders. It is endorsed by the Governments own Green Investment Bank and has sources of capital available from Banks and Pension Funds for terms from 7 to 30 years. The CEF is estimated to provide c90% of this type of finance to the NHS.


The CEF is considered the original and largest framework of its type in the UK. It is OJEU compliant and full details can be found by clicking here >>. The CEF do not procure any other services, it is constantly updating and improving its processes and it is fully devoted to the procurement of EPC’s on behalf of the Public Sector. The CEF process is fully supported by the NHS Countess of Chester Hospital procurement team.

Contract & Performance Assurance

Before the creation of CEF, it was often following the construction and commissioning that energy schemes typically started to underperform. In the main, this was due to a lack of finance, contractual awareness, appropriate sector knowledge and resource. So once a scheme has reached completion, CEF automatically takes on the onus of Contract & Performance Assurance.

As projects are typically a minimum of 15 years it’s inevitable that things change – site size, personnel, technology and energy prices. Although the Contract caters for much of this, it’s independent Performance Assurance through Monitoring and Verification (M&V) that truly safeguards the long term savings by drawing on the CEF in-house knowledge pool to steer a way through any potential uncertainties that can, and do, arise.

For more detailed information regarding CEF Contract and Performance Assurance, please click here>>


The glue that holds the processes together is the people, on a typical scheme the CEF will have 7 to 9 people working to ensure that scheme is successful. These skills provided by the CEF include technical via our in house consultants, legal, finance, procurement, project management and M&V experts. Each scheme is overseen by a Director with significant experience in the Sector.

As previously stated the CEF is a centre of knowledge and a collector of experience. The CEF team has successfully delivered over 50 schemes in both the Public and Private Sectors and it is this knowledge and experience coupled with a robust and fit for purpose process that makes the CEF work.

Investor Ready Certification

CEF are proud to be closely associated with the Environmental Defense Funds, Investor Confidence Project (ICP). As leaders in the energy efficiency industry, CEF fully support the projects objective of enabling a marketplace for building owners, project developers, utilities, public programs and investors to trade in standardized energy efficiency projects. ICP defines a clear road-map from retrofit opportunity to reliable Investor Ready Energy Efficiency™.

With a suite of Commercial and Multifamily Energy Performance Protocols in place, ICP reduces transaction costs by assembling existing standards and practices into a consistent and transparent process that promotes efficient markets by increasing confidence in energy efficiency as a demand-side resource. For further information about the ICP, please click here.

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