INVITATION TO TENDER: DEVELOPMENT OF AN ENERGY STRATEGY AND IMPLEMENTATION PLAN FOR CHESHIRE AND WARRINGTON

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1 INVITATION TO TENDER: DEVELOPMENT OF AN ENERGY STRATEGY AND IMPLEMENTATION PLAN FOR CHESHIRE AND WARRINGTON June Introduction 1.1 Background and Summary of Requirements The Cheshire and Warrington LEP will be publishing its refreshed Strategic Economic Plan (SEP) in early July, which identifies energy as a key sectoral strength. This includes our energy knowledge base and a cluster of businesses specialising in nuclear engineering and electricity distribution systems. Securing affordable energy and delivering clean growth are also identified as challenges given the strong manufacturing base and high number of intensive energy users located in the subregion. The LEP has secured funding from the Department for Business, Energy and Industrial Strategy (BEIS) to develop an Energy Strategy and Implementation Plan which it is intended will provide a roadmap for the LEP and its partners to build on previous studies, capitalise on the area s strengths in the Energy sector, address the challenges of transitioning successfully to a low carbon economy and putting Cheshire and Warrington at the forefront of the efforts to deliver affordable energy and clean growth as identified in the Government s Industrial Strategy Green Paper. A number of reports have been commissioned previously which will form part of the evidence base for the strategy, including: - I. Mickledore Sector Study Report (2012) II. Low Carbon Environmental Goods and Services Study (2013) III. Global Energy Hub Study (2013) IV. Strategic Economic Plan (2013) V. Cheshire West and Chester Energy Sector Study (Amion Consulting, 2015) VI. Cheshire East Energy Framework (2015) VII. The Economic Impact of Crewe s Deep Geothermal District Heating Scheme (Regeneris, 2016) VIII. CWLEP High Level Skills Study (2015) IX. Cheshire and Warrington: Energy A fourth strategic priority? (Mickledore, 2016) X. Cheshire and Warrington Low Carbon Action Plan There is also a significant evidence base on the potential application of heat networks in Cheshire and Warrington. In addition, work is shortly to be commissioned by Cheshire West and Chester Council, in conjunction with the Cheshire Energy Hub, to provide a modelled multi-vector energy assessment and heat network feasibility study centred on the Ellesmere Port area. X:\STRATEGY\Energy\Energy Strategy 2017\Brief_ITT\ DRAFT INVITATION TO TENDER CW Energy Strategy V5 - FINAL.Docx

2 2. Approach 2.1 Detail of requirements The LEP is seeking to appoint suitably experienced and qualified consultants to develop an overarching Energy Strategy and Implementation Plan. The aims of this commission are to: - Position Cheshire and Warrington at the forefront of the Government s Industrial Strategy ambitions for affordable energy and clean growth, and developing the low carbon technologies of the future; Develop a clear and strategic roadmap which supports implementation of the energyrelated components of the LEP s Strategic Economic Plan and development of our energy industries; Provide a 'blueprint' of our existing energy systems (power and heat), describing energy generation and network assets as well as a high-level overview of energy consumption (industrial, commercial and residential), including identification of potential limiting factors to future economic growth and the opportunity for decentralised energy as a potential enabler of local economic growth; Map out a strategy to support our transition to a low carbon economy, particularly in relation to the largest energy consumers; Identify opportunities for the development and deployment of low carbon and renewable energy technology including SMART energy systems, highlighting key investment priorities and potential business models / sources of development and construction funding for these priorities; Provide a framework for the development and deployment of the LEP s Low Carbon Innovation Fund and maximising spend on the LEP s remaining European Regional Development Fund Priority 4 allocation; Inform the future development of the Energy Innovation District proposal, and the delivery of heat and power networks in our major towns. The proposed work would consist of the following workstreams / activities: Stage 1: Updating our evidence base Updating and filling any gaps in our existing evidence base and ensuring alignment with current government policy (i.e. Industrial Strategy, etc.) to provide the LEP and BEIS with an up to date and comprehensive overview of the of the opportunities and challenges across the whole LEP area. This will include developing a high-level picture of our existing energy system looking at overall demand and supply, key sources of demand and supply (industry, domestic and non-domestic building stock), including heat. Consultants would also be asked to consider and identify potential limitations of the system to match the LEP s growth aspirations. Stage 2: Strategy and sector plans Engagement with key stakeholders through a series of one-to-one meetings and workshops to identify sectoral challenges and opportunities, end-user energy requirements and ensure industry alignment and buy-in. Development of an overarching LEP Energy Strategy, including setting out long-term ambitions, aims and objectives to develop our energy industries. This will include identifying opportunities to invest in energy efficiency and decarbonisation, low carbon generation,

3 infrastructure constraints and growing the sector through business support and eco-innovation. The strategy should also clearly articulate our rote to decarbonisation to meet the requirements of the Climate Change Act (2008). In addition, sector specific plans of our energy economy should be created, focussing on our strengths in the low carbon / energy sectors, and including: - Nuclear technologies Energy systems and decentralised energy, including heat and power networks Renewable energy, especially wind, PV, biomass and geothermal Unconventional gas Building technologies Alternative fuels and vehicles Your approach to structuring the strategy and these plans should be clearly outlined in your response. Stage 3: Implementation Plan The development of a clear roadmap for the implementation of the strategy, including key investment priorities, actions, timescales and resources (commercial opportunities, public-funded investment, infrastructure company projects and projects which are likely to require a partnership approach). This should also include a framework to effectively monitor progress against the strategy, including a clear set of metrics and integrating into monitoring activity for the Local Enterprise Partnership and Strategic Economic Plan. This stage will include development of a draft strategy and objectives and guidelines for operation of the LEP s Low Carbon Energy Innovation Fund, which has an initial allocation of around 4.15 million from Local Growth Fund. The Fund should complement existing funding streams rather than seek to duplicate them. Other activities Demonstrating effective stakeholder engagement will be an important aspect of the commission and it expected that the appointed consultants will actively support and engage in up to three events organised specifically in connection with the three stages of the study. Engagement with key industry figures is an important element of this activity. The LEP will also agree with the appointed consultant the production of presentation materials to support the report s findings. 2.2 THE TEAM The successful consultants will need to demonstrate extensive experience of sector-based studies and strategy development within the energy and / or low carbon sector. It is expected that bidders will also understand issues such as energy efficiency (across different sectors including domestic), low carbon generation, distribution and infrastructure investment processes.

4 Experience of working with the public and private sectors, including FE and HE institutions, in an inclusive and collaborative way. They will also need to demonstrate the ability to field a team with relevant expertise, deployed appropriately and in line with the work programme. 2.3 PROJECT MANAGEMENT ARRANGEMENTS A dedicated steering group containing representatives from the LEP, local authorities, University of Chester and the Cheshire Energy Hub will be established to oversee the study. Day to day project management will be provided by Andy Hulme, the LEP s Programme and Strategy Manager. 2.5 Timescales Indicative timescales as follows: - Activity Timescale (w/c) Tender Issued 19 th June 2017 Deadline for Return of Proposals 3 rd July 2017 Selection and appointment 10 th July 2017 Inception meeting 17 th July 2017 Stage 1 completed End-August 2017 Stage 2 completed Mid-October 2017 Stage 3 (Final report) Mid-November 2017 The successful consultant will be expected to attend regular (monthly) progress meetings during the course of the commission and liaison via telephone and with officers and key stakeholders as necessary. 3. RESPONDING TO THIS SPECIFICATION Tenders must address all the requirements and be in the format requested below. Tenders not in this format will not be considered. Tenderers are requested to provide core information in summary form with detail in appendices. 3.1 The following must be supplied: General

5 3.1.1 Organisation identity including name, address, telephone number, address, company registration number, VAT registration number and website address (if applicable) Details of the main point of contact within the organisation for this tender Name, address, telephone number and address of any third parties involved in this tender A list of all key personnel to be deployed on the project and details of their previous relevant experience Details of recent experience of delivering similar commissions together with details of at least one relevant referee. 3.2 Proposals A response on a point by point basis outlining how the requirements specified in section 2 will be met and demonstrating experience in the successful delivery of similar projects. Process and work-programme diagrams can be included. 3.3 Pricing The cost associated with delivering the work programme. All prices must be fixed and firm, quoted in pounds sterling and exclusive of VAT. Tenderers should detail any ancillary costs and expenses included in the price. Note that the budget for this work is 50k plus VAT. Submission 3.4 Tenders must be completed in accordance with the format specified above. Tenders which are incomplete will not be evaluated. 3.5 Tenders and any supporting information must be submitted electronically, marked Tender for Cheshire and Warrington LEP Energy Strategy to andy.hulme@871candwep.co.uk 3.6 Deadline for submission is 12 noon on Wednesday 5 th July Tenders delivered after this time will not be accepted. 4. EXAMINATION AND EVALUATION OF TENDERS

6 4.1 Tenders will be assessed initially by reference to the following pass / fail criteria: (i) Completeness of proposals and tender documentation as specified in Sections 2 (Approach) and 3 (Responding to this Specification) of this document; (ii) Stated ability of the Tenderer to meet all of the requirements specified in Section 2 of this document; 4.2 Award Criteria Proposals will be scored against the following criteria, from a maximum of 100 marks weighted as indicated; Knowledge and understanding of the energy and low carbon sector 30 and the LEP s requirements Experience of successfully delivering similar commissions 20 Cost / Value for money 20 Content, delivery and originality 20 Team experience / resourcing GENERAL INFORMATION 5.1 Financial Arrangements Payments for services covered by this invitation to tender will be on submission of appropriate invoices, subject to Cheshire and Warrington LEP s standard payment terms, and which will be based on agreed deliverables. Invoicing arrangements will be agreed with the successful provider, following the award of contract. 5.2 Contract A contract will be awarded to the Tenderer whose proposal is deemed to be the most economically advantageous subject to agreement on conditions of that contract. Please note that the LEP reserves the right to cancel the Tender process at any time prior to a contract being entered into. The LEP is not bound to accept the lowest price, or any tender submitted. 5.3 Further Information and Queries Any clarifications to information contained in this document must be submitted in writing (by ) no later than close of play on Wednesday 28 th June Any additional information provided will be made available to all potential Tenderers via the LEP website,

7 Name: Andy Hulme