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Heat Networks and buildings CHP
UK Public Sector contracts 2013 – 2016
Ian Manders, UK policy advisor, Danish
Trade Council
Danish Energy Model project
Danish Embassy
June 2017
Ian Manders - Danish Embassy
UK energy in buildings policy advisor - (since 2014)
Deputy Director, CHPA (2008-2013)
- created "The Big Offer" to energy Secretary Ed Davey, which led to
UK government support for district heating, the creation of the Heat
Trust and CIBSE-ADE Code of Practice. UK Government now
allocated 300m pounds capital to enable the construction of two
billion pounds of low carbon heat networks.
Deputy Director, ACE (2006-2008)
- initiated Planning and Energy Act 2008, giving power to Local
Planning Authorities in England and Wales to require that a new
development is supplied with energy from renewable sources and is
connected to a heat network.
Why collect market size information?
To inform and encourage:
• existing businesses in the market;
• new entrants to the market;
• decision makers in central government;
• prospective customers eg local authorities, RSLs
and developers; and
• prospective investors.
Issues with the present situation - HN
1. No central market place to set prices and encourage
competition;
2. Entry to “market” is difficult, expensive and can take a long
time to gain the first customer;
3. Long-time between contract opportunities;
4. Who is the customer?
5. What do they want? Low Price or High Quality?
6. Little apparent commonality between projects rules out
“cookie-cutter” solutions and makes estimation of risk
difficult.
Monitoring
• The Embassy monitors district heating contracts as part of its
information service to Danish companies providing district heating
equipment and services in the UK. The information is based on public
sector tenders and known awarded contracts in the public domain
and does not represent private sector deals.
• http://ted.europa.eu/TED/browse/
• https://www.contractsfinder.service.gov.uk/Search
• http://www.publictenders.net/
• https://www.delta-esourcing.com/
• http://www.publiccontractsscotland.gov.uk/
• www.yortender.co.uk
• http://www.tendersdirect.co.uk/
Using these CPV codes
in prioritized order
• 09323000 District heating
• 45232140 District-heating mains construction work
• 44163120 Distance-heating pipes
• 45251250 District-heating plant construction work
• 42515000 District heating boiler
Value - bottom of range GBP
Value - top of range GBP
“District heating is booming in Britain”
• £350 million of district heating contracts issued in
2016 for UK public sector - large increase on 2015
• Since 2013 half a billion pounds of public sector
district heating contracts have been awarded in the
UK.• Yet to appear in the figures are the contracts emerging for new heat
network schemes that the UK and Scottish Governments are willing to
support with £320 million of capital.
DH contracts 2013 - 2016
2013 2014 2015 2016 Total
£40,449,984
£59,053,162
£100,209,820
£352,894,881
£552,607,847
Public sector district
heating contracts 2013
to 2016
Other sectors 2013 - 2016
• £300 million plus from private sector(new property development)
• £240 million from ECO 1 & 2(social housing)
• £40 million plus from hospital frameworks(eg Carbon and Energy Fund)
Total £1.2 billion 2013-2016
£0
£200,000,000
£400,000,000
£600,000,000
£800,000,000
£1,000,000,000
£1,200,000,000
Heat Network contracts 2013 to 2016
Cheshire East “largest value contract”
1. Cheshire East Borough Council in a
Joint Venture Partner (JVP) with
Engie Energy Solutions2. DBO heat network & energy centres
3. Valued on OJEU as £100,000,0004. TED ref: 2016/S 076-1347615. Number of offers received = 1
The End
• IAN MANDERS / [email protected]
• UK POLICY ADVISOR – ENERGY AND ENERGY
EFFICIENCY / LONDON
• DIRECT +44 207 333 0214 / MOBILE +44 79466 12508
•
• DANISH EMBASSY, LONDON
• 55 SLOANE STREET / SW1X 9SR LONDON
• http://storbritannien.um.dk/en/the-trade-council/
