Energy Performance Contracts

Tender description

Network Rail (NR) owns, operates, and develops Britain’s railway infrastructure. That is 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We manage 20 of the UK's largest stations while all the others, over 2,500, are currently managed by the country’s train operating companies. NR are undertaking a Decarbonisation/ Energy Efficiency Programme across a range of built assets in all Regions. We have already completed over 150 energy audits so far and identified significant potential to reduce carbon and energy use. Network Rail Route Services have national targets to achieve carbon and energy reductions in their operations as outlined in our Environmental Sustainability Strategy. An overview of Network Rail scope of activities may be found on our web site (https://www.networkrail.co.uk/wp-content/uploads/2020/09/NR-Environmental-Strategy-FINAL-web.pdf). To contribute to the achievement of these aims, Network Rail intend to award contracts as a result of this procurement to qualified and capable Energy Services Companies (ESCo’s and the Suppliers under the Framework resulting from this procurement) to provide proposals as part of a call off of services from Suppliers on the Framework Agreement for the provision of Energy Performance Contract (EPC) services. An EPC is a form of financing for capital improvements which allows for funding of energy upgrades from cost reductions. Under an EPC arrangement the Supplier implements a project to deliver energy efficiencies and/or a renewable energy project and uses the stream of income from the cost savings, or the renewable energy produced, to repay the costs of the project, including the costs of the investment and cost of financing. The purpose of this procurement is the competitive selection of up to three Suppliers for Framework Agreement award. Lot 1: Network Rail (NR) owns, operates, and develops Britain’s railway infrastructure. That is 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We manage 20 of the UK's largest stations while all the others, over 2,500, are currently managed by the country’s train operating companies. NR are undertaking a Decarbonisation/ Energy Efficiency Programme across a range of built assets in all Regions. We have already completed over 150 energy audits so far and identified significant potential to reduce carbon and energy use. Network Rail Route Services have national targets to achieve carbon and energy reductions in their operations as outlined in our Environmental Sustainability Strategy. An overview of Network Rail scope of activities may be found on our web site (https://www.networkrail.co.uk/wp-content/uploads/2020/09/NR-Environmental-Strategy-FINAL-web.pdf). To contribute to the achievement of these aims, Network Rail intend to award contracts as a result of this procurement to qualified and capable Energy Services Companies (ESCo’s and the Suppliers under the Framework resulting from this procurement) to provide proposals as part of a call off of services from Suppliers on the Framework Agreement for the provision of Energy Performance Contract (EPC) services. An EPC is a form of financing for capital improvements which allows for funding of energy upgrades from cost reductions. Under an EPC arrangement the Supplier implements a project to deliver energy efficiencies and/or a renewable energy project and uses the stream of income from the cost savings, or the renewable energy produced, to repay the costs of the project, including the costs of the investment and cost of financing. The purpose of this procurement is the competitive selection of up to three Suppliers for Framework Agreement award. Network Rail’s portfolio of buildings consist of offices, stations, depots, route operating centres, electrical control rooms, signalling centres and other operational infrastructure as detailed in Property Description in Annex 1. Most properties in this portfolio will be optionally covered by the Framework contract. It is intended that Network Rail will regularly release batches of property for EPC activities throughout the term of the Framework Agreement. EPC services may be requested for any location in Network Rail property portfolio in all parts of Great Britain. The Network Rail property portfolio is managed by 5 regional organizations, supported by centralised functions in the Authority. This framework contract will be awarded by the central commercial and procurement teams acting on behalf of the Authority and the regional organisations. The exact number of and type of properties for EPC consideration during the term of the Framework Agreement will be dependent on Network Rail’s discretion, operational constraints and the Suppliers’ capability.