Public sector decarbonisation: Demand management and renewables agreement

Crown Commercial Service unpacks enabling public sector decarbonisation by focusing on the new Demand Management & Renewables agreement

In May 2023, Crown Commercial Service (CCS) awarded a new Demand Management and Renewables Agreement (RM6314) to accelerate the UK’s net zero goals by helping improve the public sector’s energy consumption and efficiency and furthering the possibility of total public sector decarbonisation.

The new framework is one of two replacements for the current Heat Network and Electricity Generation Assets (HELGA) DPS Agreement. The other replacement is Demand Management and Renewables DPS Agreement (RM6313).

The new Demand Management and Renewables Agreement (DMR) provides a route to market for local authorities and supports public sector decarbonisation strategies. As part of CCS’s wider construction and decarbonisation offering, it builds on the progress of helping hundreds of public sector customers.

The new DMR agreement, like CCS’s Construction agreements, uses FAC-1 Framework Alliance Contract terms and conditions that allow public sector organisations to establish alliance contracts for certain projects.

Lotting structure in energy efficiency

With energy efficiency and renewable power at its centre, the agreement’s lots cover five energy efficiency areas, including:

• Lot 1 – Solar photovoltaic projects.
• Lot 2 – Battery energy storage.
• Lot 3 – Heat pump projects (air source and ground source).
• Lot 4 – Heat network (design and build).
• Lot 5 – Carbon Net Zero/Sustainability consultancy.

Supporting heat decarbonisation strategies

The built environment contributes significantly to greenhouse gas emissions and environmental impact. The public sector continues to play an essential part in the country’s journey toward net zero by providing buildings for millions of citizens accessing public services.

The new DMR RM6314, combined with CCS’s Dynamic Purchasing System (RM6313), will provide effective routes to the market for sustainability projects that support public sector decarbonisation.

The agreement allows customers to install heat pumps to reduce an estate’s gas consumption and heat network design and infrastructure for more extensive heat decarbonisation strategies.

Increasing energy supply security with renewable energy

Solar PV panels offer an economical alternative to generating electricity, from public and residential buildings to park and ride buses. The cost of solar PV has significantly reduced over the past 15 years, with the payback period on the initial investment decreasing too.

Using the new DMR, customers will have access to suppliers that can support solar projects that can help reduce electricity costs over a certain period while supporting decarbonisation targets and increasing the security of your energy supply.

Attracting a diverse and innovative supplier base

Access to innovation is critical to meeting the UK’s carbon emissions target and achieving public sector decarbonisation. CCS’s new agreement is designed to attract a supplier base that keeps pace with an expanding sustainability market.

“Our DMR agreement includes a blend of large Energy Service Companies (ESCOs) and specialist SMEs. Many of our ESCOs are supported by their specialist SME supply chain for specific projects,” says John Welch, Deputy Director for Construction at Crown Commercial Service.

Tackling resource and budget constraints – the barriers

The agreement also includes consultancy services, which allow local government customers to gain access to sustainability expertise to help them maximise the potential of their decarbonisation strategies.

To help overcome the challenges of funding decarbonisation projects, customers can take advantage of the new DMR agreement through direct awards and Government and grant funding.

CCS procurement: Find out more

CCS’s dedicated team of industry specialists is on hand throughout the procurement process, helping you save time, energy, and money so that you can put more focus on your organisation’s needs.

Learn more about CCS’s new Demand Management and Renewables Agreement (RM6314) by visiting the agreement webpage.

© Crown copyright

Crown Commercial Service (CCS)
info@crowncommercial.gov.uk
www.crowncommercial.gov.uk
Twitter
Linkedin
YouTube