Non Domestic Energy Efficiency Framework Delivery and Support for NDEE in the Public Sector in Scotland

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1 Non Domestic Energy Efficiency Framework Delivery and Support for NDEE in the Public Sector in Scotland Prepare Procure Save Jamie Goth Scottish Futures Trust APSE Seminar 24 th November 2015

2 Drivers for Energy Efficiency Climate Change Thermal Comfort Emissions Targets Revenue Cost Savings Mandatory Reporting Security of Energy Supplies Corporate Social Responsibility

3 What can you Buy? How is it Contracted for? NDEE Framework 12 Contractors To be announced this month Selected to work on: - Scotland Retrofit Non Domestic Energy Efficiency Renewables in the mix Connecting up to district heating Go live date: March 2016 Energy Performance Contract Guaranteed Energy Performance e.g. 20%, 8 year payback, 1m CAPEX Payment Linked to Results Reduced savings Reduced Payment Install energy efficiency technologies Ongoing Services: Maintenance Bureau Service Behaviour Change

4 Scaling up Delivery of Energy Efficiency to meet 2020 emissions targets Achieve value for money in energy efficiency projects: - increase project scale integrate energy efficiency into the heart of refurbishment projects form whole-building projects that use savings from measures with short payback periods to balance more challenging measures Transfer risk to installers set own minimum requirements for savings require tenderers to identify detailed solutions Make greatest use of internal resource prioritise buildings through knowledge of own estate lead ambitious programmes employ consultants and contractors for analysis and detail

5 Scaling up Delivery of Energy Efficiency to meet 2020 emissions targets Measurement & Verification and am&t Passive & Building Fabric Insulation Pipe work & Ductwork Savings Boilers & Chillers Lighting Equipment Controls Behaviour Change Payback Period Residual Life EE Package Payback Period Micro-generation Investment Start Short Term Package 5 to 15 years 5 Years 10 Years 15 Years Long Term

6 Scottish Government s Non Domestic Energy Efficiency Framework PREPARE (Authority) PROCURE (Bidders) SAVE (Contractor) Scope Present and approve Prepare ITMC Proposals Shortlist IGP Select Contractor Contract Guaranteed Energy Performance Construct Operate (Measure & Verify)

7 Scottish Government s Non Domestic Energy Efficiency Framework Green Book: Strategic Full PREPARE (Authority) PROCURE (Bidders) SAVE (Contractor) Scope Present and approve Prepare Scope Identify buildings with savings potential. Advisable > 500 CAPEX Set Authority s Minimum Requirements, e.g. 20% saving, 8 year payback period Present and Approve Fulfil internal approvals requirements Prepare Develop Invitation to Mini-Competition (ITMC) pack, including Evaluation Criteria ITMC Proposals Shortlist IGP Select Contractor Contract Guaranteed Energy Performance Construct Operate (Measure & Verify)

8 Scottish Government s Non Domestic Energy Efficiency Framework Green Book: Strategic Full PREPARE (Authority) PROCURE (Bidders) SAVE (Contractor) Scope Present and approve Prepare TENDER Issue Notice & ITMC Framework suppliers submit proposals Evaluate proposals & shortlist supplier(s) Select Contractor Shortlisted bidder submits IGP appoint Contract Min GEP; Max CAPEX; other Authority Requirements ITMC Proposals Shortlist IGP Select Contractor Contract Guaranteed Energy Performance Construct Three Stages of : Notice Invitation to Mini Competition (ITMC) Investment Grade Proposal (IGP) Operate (Measure & Verify)

9 Scottish Government s Non Domestic Energy Efficiency Framework Green Book: Strategic Full PREPARE (Authority) PROCURE (Bidders) SAVE (Contractor) Scope Present and approve Prepare RIBA Work Plan: 0 Strategic Definition Guaranteed Energy Performance Construct Conventional construction phase Commissioning and handover Milestone 1 Operate Must achieve to receive GEP Milestone 2 ITMC Proposals Shortlist IGP contractor incentivised to design, install & prove savings 1 2 Preparation Concept Design & Brief 3 Developed Design Select Contractor 4 Technical Design Contract Guaranteed Energy Performance Construct 5 Construction Milestone Payments 1 & 2 6 Handover and Close Out Operate (Measure & Verify) In Use

10 Support through LCITP Low Carbon Infrastructure Transition Programme Support by application, subject to eligibility of organisation and project Provided by advisors procured by LCITP on Authority s behalf Advisors to assist with Prepare stage of eligible projects, e.g. : technical scope outline business case By Procure stage project benefits will be quantified Advisors costs form part of outline business case At Save stage, it is expected savings will exceed ongoing costs

11 Scottish Government s NDEE Framework PREPARE Questions? PROCURE SAVE SFT, Low Carbon, Non Domestic Energy Efficiency: Jamie.Goth@scottishfuturestrust.org.uk; Low Carbon Infrastructure Transition Programme: Stephen.Vere@scottishfuturestrust.org.uk;

Non Domestic Energy Efficiency Framework Delivery and Support for NDEE in the Public Sector in Scotland

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