Purpose

This report seeks
approval for the procurement strategy to appoint a community energy
partner on a term concession contract to raise finance to fund and
oversee the installation of solar and other energy saving
technologies on Council buildings, schools and leisure centres. The
approach removes the need for capital investment by the Council and
leads to the host building benefitting from improved energy
efficiency. The approach has been piloted successfully at three
Camden secondary schools and Talacre Leisure Centre.
 
This report sets
out a proposed approach to the commissioning of a community energy
partner to work with the Council over a 20-year term to install the
energy saving technologies on various Council buildings, starting
with up to eight schools. A 20-year term is required as this is
typically the time required to service finance.
 
The contract is a
below threshold concession contract, where the concessionaire will
generate income from the installation of solar panels on the
Council’s buildings. It is envisaged than an overarching
concession contract agreement will be entered into with the
successful tenderer, and then individual tripartite licence
agreements will be agreed between the Council, the Concessionaire,
and the Occupier of each premises where solar energy installations
are made, throughout the term of the Concession agreement. Within
the 20 year concession agreement, the concessionaire will be able
to enter into new licence agreements within the first 5 years of
the concession agreement. This is to enable the full 15 years for
each licence agreement required to service finance.
 
The procurement
strategy report is being presented to the Director of Environment
and Sustainability for approval in line with Contract Standing
Orders and in line with the delegated authority from the Cabinet
approval for the Climate Action Plan.

Content

THAT the
procurement strategy for a community energy partner concession
contract, which includes a price/quality split of 30/70 and
contract term of 20 years, for an estimated aggregate value of
£247,500, be approved.