The Carbon & Energy Fund Working together In the P/S to - - PowerPoint PPT Presentation

The Carbon & Energy Fund

Working together In the P/S to improve Carbon & Energy Performance

NHS SBS CEF

The CEF Framework Bidder’s Day

Agenda 1. Introductions 2. Review of the procurement ( questions and any feedback ) 3. Update on the framework and pipeline 4. Description of upcoming projects and how bidders should choose 5. Financing of schemes 6. Description of how education will run ( Richard Murphy ) 7. Discussion of Scotland and how it will run ( Tom Pye HFS Scotland ) 8. Discussion of iheem October 8th and 9th 9. Discussion of education show November 26th and 27th 10. Teach in on the contract for bidders 11. Info on teach-in on the paymech at iheem 12. Short intro to Heartlands scheme and reflections on having done 3 projects now ( Robert Anderson )

• 13. AOB

The CEF Framework Open Day

Introductions

Clive Nattrass - CEO, The Carbon and Energy Fund David Mackey - Director, The Carbon and Energy Fund Tom Pye – Energy Manager, Health Facilities Scotland Richard Murphy – MD, The Energy Consortium Robert Anderson – Director of Facilities, Heartlands hospitals

Framework Procurement

Clive Nattrass CEO Carbon and Energy Fund

Why are we here?

• The new framework is live
• Have 8 new bidders, 17 in total
• We are expanding to the whole public sector in

stages, we want you to hear of it from the horses mouth

• We have learnt that contractors need support
• We want to start some training
• We have bidder meetings approx. 2* per year
• We have Iheem and the education events

coming up

• CEF 1 had 10/9 bidders
• CEF 2 has 17 bidders CEF 3 2-3 years
• Links on the website
• Two open days have been held ( WWL 12, MEHT 5 )
• All but 1 bidder has signed the framework agreement
• Standard was good, more experienced rested on

their laurels

Review of the procurement

CEF Framework 2 Scoring sheet final Project Management Approach 15% 75 80 80 70 75 75 50 60 60 65 50 65 60 85 55 70 75 Legal response pass fail pass pass pass pass pass pass clari fy pass clari fy pass pass pass pass pass pass pass pass Financial Response 10% 75 80 75 95 70 75 50 50 55 85 50 65 60 80 50 70 65 Approach to design and construction 35% 75 85 50 50 60 50 75 55 70 70 60 75 75 80 50 60 70 Approach to Service delivery 25% 75 70 60 40 50 50 55 55 55 50 55 60 55 80 50 60 60 Project programme and timescales 15% 75 70 50 45 60 55 40 75 55 50 45 75 75 80 50 55 65 Total 75.0 77.8 59.5 54.3 60.8 57.0 58.5 58.3 61.0 62.8 54.0 68.8 66.3 80.8 50.8 61.8 67.0 Ranking 3 2 11 15 10 14 12 13 9 7 16 4 6 1 17 8 5

Results

Why the scores?

Framework and pipeline

David Mackey Director, Carbon and Energy Fund

Current and Future Pipeline

NHS £750m to £1bn total

C£50-60m pa

Education (September )

£10m to £20m pa

Local Authority

£20m – £30m pa

Public Sector 4

£20m to £30m pa

• The CEF process is not NHS Specific
• Co-Creation has commenced with other sectors and it has led to a

new sector launch in June 2013

• £25m of funding has been ring fenced to target smaller scale demand

side multi site applications e.g. Local Authority

Review of CEF 1

Tranche 1

• Total Value c£48m
• 6 Projects
• Mean Av Value £8m
• Min £1.6m
• Max £35m

Tranche 2

• Total Value c£28m
• 7 Projects
• Mean Av Value £3.5m
• Min £1m
• Max £6.5m

Tranche 3

• Total Value c£33m
• 8 Projects
• Mean Av Value £3.6m
• Min £1m
• Max £9m

Pipeline CEF 2

Tranche 4 (July 13 – Dec 13)

• Total Value c£53m
• Est 10 Projects
• Mean Av Value TBC
• Min £1.6m
• Max £20m

Tranche 5 (Jan 14 – July 14)

• Total Value c£32m
• 12 Projects in neg
• Mean Av Value TBC
• Min £1m
• Max £5m

New Sector Q3 /Q 4 2013

• Education Pilots (3 from over 10 enquires est at £10m)
• Local Government (3 pilots est at £9m)

Pipeline CEF 2 Tranche 4&5

Tranche 4

St Johns Hospital. Lothian PAH Leeds Proj 1 Leeds Proj 2 Wigan & Leigh Stoke Mandeville Scarborough MEHT Liverpool Womens Liverpool Walton Manchester Central and Trafford

Tranche 5

Ashford and St Peters Royal Surrey Southampton S Central NHS Scotland*2 Ayrshire & Arran Inverclyde Hospital Glasgow W Sussex - Worthing Hospital The Royal Marsden Chelsea Newcross Incinerators Nine Wells Hospital Tayside Imperial College I of W

Financing of Projects

David Mackey Director Carbon and Energy Fund

Review of CEF 3rd Party Funders

• Few sources of 15 year money
• Cookie cutter process required
• Co-op failure was not anticipated
• Discussions with other funders not

finalised

• Balance Sheet is still an issue for

Trusts

• Despite this, existing projects are

funded

CEF Project

Lending Banks SocGen Rabobank Poss Santander Pos Return of Co-op Pension Funds Aviva Investors Government Green Investment Bank NHS DoH EE Fund Contractor Funded

Securing the Future

What does this mean to you?

Medium Term

• By the end of the process the CEF panel of funders will have increased
• There will be a greater diversity in the type of finance available

Short Term

• Greater diversity can create issues, e.g. is it asset backed, receivables

backed or is it an investor seeking a long term inflation backed return?

• A one size fits all contract will take time
• Some contracts may be longer than 15 years
• Funders take time to get comfortable with a new sector
• If you are introducing a new funder please ensure that your funder is fully

aware of the contract and that your bid is compliant e.g.

• There is no Deed of Safeguard from a Trust
• Hell and High Water Clauses have a financial impact on your bid

Winning Projects

David Mackey & Clive Nattrass

Projects are not won on price

• Innovation is key
• Listen to the client to work out what it is they

want

• Play to your strengths
• CHP in a box is normally not enough
• Put in demand side measures and look for

investments that unlock savings

Projects in Further education

Richard Murphy MD The Energy Consortium

The Energy Consortium are;

• A ‘Not for Profit’ Public Sector Buying Organisation, initially formed as an
• ff-shoot of AUDE.
• Governed by its membership.

Primarily UK Universities Transparency

• Full member of English National Purchasing & UKUPC

Referenced in the Diamond Report

• Delivers OJEU compliant solutions.
• Delivers Cabinet Office ERG ‘Recommended Solutions’
• Involved management and procurement of energy purchases for best value.

Over £165 Million of Gas & Electricity Contracts.

Core Services

‘Flexible Managed’ Energy Contracts Recognised as providing ‘Best Value for Money’ Unique to ‘The Energy Consortium’ Data Cleansing and Validation Post Tender Negotiation and Dispute Resolution Full Contract Management & Reporting Service Annual Risk Management Forum ‘Managed Non-flexible Fixed Term’ Energy Contracts Data Cleansing and Validation Optimisation of time to market E-tender Platform. Post Tender Negotiation and Dispute Resolution Carbon Management Services EU-ETS Phase II CRC Help Desk

Other Services

• Bill Validation & Bureau Services
• Best Practice Guides

Guide to Renewable Generation Project Managers Guide for Energy Efficiency in Buildings

• Electricity & Gas Retrospective Cost Auditing (PCMG)
• Water Retrospective Cost Auditing (M&C Energy)
• Biomass Fuel Supply
• Other services connected to energy based on sector demand and

procurement resource.

Membership Benefits

• TEC also provide the following member benefits

including:

– Daily/weekly market updates – Newsletters and legislative updates – Annual Member Conferences – Preferential Seminar rates – Advice and assistance on markets and dispute resolution – Access to Utilyx Knowledge Hub – Dedicated Account Management – Access to members area at www.energyconsortium.org.uk

4 Cornerstones of an Effective Energy Strategy

• In order to provide effective energy (carbon)

management you must: – Buy at the right price or against the right strategy. – Only pay for what you use – validate bills. – Only use what you have to – energy efficiency. The cheapest unit of energy is the one you never use. – Report – Make sure everyone who has an influence

• ver the energy usage on the estate understands how

they influence both cost and usage. You can only manage what you can measure (and report).

Energy Performance Contracts offers our sector

• A solution to part 3 on the previous slide via a co-created (TEC and

CEF) framework – initial stage is pilot only.

• The opportunity to support achievement of challenging carbon

targets which have links to funding.

• Further support for the collaborative agenda (Diamond Target of

30%)

• An OJEU procured approach consistent with all our other

frameworks, without having to recruit and employ technical specialists to define schemes and evaluate bids.

• A strong link to flexible procurement.
• Access to funding (if required) and joined up thinking with GIB and

HEFCE being part of the same department.

TEC offers CEF

• Controlled access to higher education markets and wider public

sector.

• A link to provide energy procurement options (in particular flexible

purchase) to other CEF framework users through established frameworks.

• Accurate forward forecasts of energy prices to support contract

performance and savings.

• Potential off-takers for spilled power through PPAs.
• A coordinated approach to the key stakeholders in the sector

(AUDE, AUE, BUFDG, Procurement Groups and EAUC)

• Procurement support through an established energy only PBO.
• A focused message to an established membership.
• Contact with other stakeholders including Cabinet Office, GPS.

Next Steps

• Member engagement programme – already commenced with

Member Relationship Executives and Annual Conference Feedback.

• Meetings being scheduled to discuss with “hot prospects”, but

this is a challenging time of year as estates teams are very busy with summer re-furbs and building completion .

• More than 15 prospective schemes, some of which may be in

time to be used as pilots on this framework.

• Autumn will see some of these moved forwards, with bids

sought in Q4 2013/Q1 2014.

• Continued joint marketing with TEC and CEF.
• Co-created framework in 2014/15 if pilots are successful.

CEFS projects in Scotland

Tom Pye Energy Manager Energy Facilities Scotland

NHSScotland

Tuesday 30th July 2013, Heartlands Hospital, Birmingham

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CEF Framework 2: Bidders Day

Thomas Pye

Energy and Climate Change Team

Kate Dapré - Energy & Climate Change Manager Thomas Pye - Energy Manager Colin Clarke - Energy Manager Anjum Sheikh - eMART Data Analyst

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NHS Scotland Overview

>4.6 million m2 Buildings Approx 154,000 employees (6.3% of Scotland’s workforce) Total energy expenditure circa £140m (2011/12) Carbon footprint approx 491,0001 tCO2e

• 1. This figure only pertains to the Hospital part of the Estate

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NHSScotland

14 Geographical NHS Boards 8 Special Boards, 2 of which are presently reporting Overall >200 Hospital Sites, which are reported nationally via eMART

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Support and advise NHS Boards

• n Energy/Climate Change matters

This includes: Assisting the Boards in all aspects of Energy Efficiency/CO2 emission reductions to achieve national targets; Provide training and seminars; Support Boards in the use of eMART, CEEF and the Carbon Reduction Programme; Provide a forum to disseminate best practice; Respond to National consultations in collaboration with Boards; Provide guidance and help on new legislation.

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Policy and Legislation

Climate Change (Scotland) Act 2009 Building Standards and BREEAM Carbon Reduction Commitment Energy Efficiency Scheme CEL 1(2012): Public Sector Sustainability Reporting Requirements CEL 2 (2012): NHS Scotland Sustainable Development Policy Individual Board policies Local Planning policies

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Results and Achievements

Scotland Government target of 42% CO2 reduction by 2020 (on 1990 levels) NHSS achieved a 42% reduction in CO2 from fossil fuel use in 2010/11 – 10 years early In the same 20 year period: – Absolute energy use down 38% – Water consumption down >60% – Non-clinical waste to landfill down >10%

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NHSScotland’s Energy Performance:

Energy usage in hospitals since 1985-86

Climatically Adjusted National Energy Performance

2% of Base Year Target

5.00 6.00 7.00 8.00 9.00 10.00 11.00

1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Total Consumption (million GJ)

Actual Consumption

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HEAT Targets

Health, Efficiency, Access, Treatment 25 targets E8: Reduce Carbon Emissions and Energy Consumption

”NHSScotland to reduce energy-based carbon emissions and to continue a reduction in energy consumption to contribute to the greenhouse gas emissions reduction targets set in the Climate Change (Scotland) Act 2009.”

Targets going forward to help meet the requirements of the Climate Change Act

Going forward to 2050 a new two part target was introduced from April 2010 to ensure we achieve not only the CCA 2050 CO2 target, but also continue to strive to achieve energy efficiency good practice across the whole NHSScotland estate. The targets are: a 3% year on year CO2 emissions target on fossil fuels, and a 1% year on year energy efficiency target per annum on all energy usage. These will be reviewed at 5 year intervals to ensure we stay on track and take new developments in technology into account.

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Going Forward

Feasibility Studies and Outline Business Cases for a number of Energy Efficiency and Renewable Projects (2012 to 2015) Eco-Hospitals Initiative, circa £14m

Carbon Reduction Programme £15m Carbon and Energy Fund (CEF): External Private Finance, through operating leases via Energy Service Contracts (ESCo) circa >£25m

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Going Forward

Year CRP Eco- Hospitals CEF2 2012/13 £3m £9m

• 2013/14

£6m £5m £6m 2014/15 £6m

• £13m

2015/16

• £7m

Totals £15m £14m £26m

• 2. Figures are estimated on initial feasibility studies, more detailed analysis are still to be carried out.

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NHS Grampian

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Sites Approx No

• f Beds

Estate Floor Area (m2) Energy Use (MWh) Foresterhill Campus >2,000 >250,000 150,034 Royal Cornhill 351 49,416 20,600 Woodend Hospital 377 37,623 21,555 Dr Gray’s Hospital, Elgin 189 21,748 11,803

NHS Lothian

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Sites Approx No

• f Beds

Estate Floor Area (m2) Energy Use (MWh) St Johns Hospital 495 67,004 41,451

NHS Greater Glasgow & Clyde

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NHS Greater Glasgow & Clyde

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Sites Approx No

• f Beds

Estate Floor Area (m2) Energy Use (MWh) Royal Alexandra Hospital 742 70,087 39,516 Inverclyde Royal Hospital 366 50,707 28,103 Glasgow Royal Infirmary 872 199,600 97,443

Future Challenges

Most ‘quick wins’ have been implemented Reduced funding Rising energy prices Procurement/accounting limitations Changing care demographics Climate change impacts & adaptation Aligning refurbishment strategies with asset management strategies Aligning refurbishment strategies with infection control/patient care priorities

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Estimated energy usage by 2050

Projected Energy Usage Target 2010 -2050

Total Energy

2 4 6 8 10 12

1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22 2023-24 2025-26 2027-28 2029-30 2031-32 2033-34 2035-36 2037-38 2039-40 2041-42 2043-44 2045-46 2047-48 2049-50

Energy (millions GJ)

2010 Expected energy usage, almost all from fossil fuels. 2050 Target Energy required for NHSScotland in 2050. Approximately 50% from renewables. Average performance 45 GJ/100m3

Projected Energy Usage Target 2010 -2050

Fossil fuels Electricity

2 4 6 8 10 12

1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22 2023-24 2025-26 2027-28 2029-30 2031-32 2033-34 2035-36 2037-38 2039-40 2041-42 2043-44 2045-46 2047-48 2049-50

Energy (millions GJ)

2010 Expected energy usage, almost all from fossil fuels. 2050 Target Energy required for NHSScotland in 2050. Approximately 50% from renewables. Average performance 45 GJ/100m3

Projected Energy Usage Target 2010 -2050

Fossil fuels Renewable Electricity Fossil Electricity

2 4 6 8 10 12

1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22 2023-24 2025-26 2027-28 2029-30 2031-32 2033-34 2035-36 2037-38 2039-40 2041-42 2043-44 2045-46 2047-48 2049-50

Energy (millions GJ)

2010 Expected energy usage, almost all from fossil fuels. 2050 Target Energy required for NHSScotland in 2050. Approximately 50% from renewables. Average performance 45 GJ/100m3

Biomass

Projected Energy Usage Target 2010 -2050 Fossil Fuels Fossil Electricity

2 4 6 8 10 12

1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22 2023-24 2025-26 2027-28 2029-30 2031-32 2033-34 2035-36 2037-38 2039-40 2041-42 2043-44 2045-46 2047-48 2049-50

Energy (millions GJ) 2010 Expected energy usage, almost all from fossil fuels. 2050 Target Energy required for NHSScotland in

• 2050. Approximately 50% from
• renewables. Average performance

44 GJ/100m3

Biomass GSHP Electricity Renewable Electricity

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Thank you for listening Any questions? Thomas Pye e-mail: thomas.pye@nhs.net Tel: 0141 207 1850 Mob: 07825 060 992

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Monitoring of Projects

Stephen Lowndes – Technical Director CEF

Contractor automatic site monitoring facility TEAM automatic ftp data collection TEAM automatic data handling process – live savings calc TEAM SigNET database interface

Energy Project Contractor Installation TEAM Monitoring and Data Management Service Attest Verification Reporting Trust remote access Transmit over internet Contractor quarterly / annual savings reports Attest verification of quarterly / annual savings reports

TEAM reporting

• ut of range

values or null data

Iheem 8 and 9 the October

Clive Nattrass

Invitation Bidders are invited to nominate 1 person per bidder to have supper with us at Iheem

CEF contract framework 2

Clive Nattrass

CEF Contract

• PA

– Land issues, design and construction, services, payment, change in law, delay, relief, FM, termination

• Legal schedules

– Definitions, completion docs, review procedure, record provisions, variation, handback, dispute resolution, refinancing, insurance proceeds,

• Project specific schedules

Heart of England NHSFT

Case Study Bob Anderson Dir of Facilities

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Any Questions

• n the HoE schemes?

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