The initial focus is on biomass energy and energy created from waste, and the Cabinet Office initiative will offer renewable generators a deal to hand over a percentage of their capacity over the next 25 years.
Through harnessing the buying clout of the Government Procurement Service, which is estimated to spend £1.5 billion a year on gas and electricity across the UK, this pilot programme is looking to source 2 per cent of the demand for energy from these renewable energy sources. The scheme will look to start in January, and if the trial is successful, the amount of contracts released directly to green energy companies, who may be on an approved suppliers list following the initial release of contracts in January, will significantly increase to up to 50 per cent over the next five years. The emphasis of this scheme is initially on the constant power sources rather than those that are not constant, such as wind energy.
It is believed that if this scheme is successful, it could save UK taxpayers up to £155 million over the next 15 years through price negotiation with the energy companies, in return for financial security, claims Francis Maude, Cabinet Office Minister.
He has been reported as saying, before the announcement, “The UK is in a global race and that’s why we are working to attract investment into our energy industry to create jobs, develop technology and secure clean and diverse supplies for the future … This pilot will take us a step further towards our goal of hedging more of our energy needs against future price fluctuations – protecting the taxpayer … and because we will be increasing competition in the energy market there could be a downward pressure on everyone’s bills as well”.
We are interested to see what the contents of the released contracts will be, and if you are an energy company looking to prepare for tendering to provide energy in January, why not contact us today to see how we will be able to strengthen your commercial arm and help you to write the strongest and most convincing tender possible, maximising your chances of contract award. We are expert PQQ and Tender writers, and we are here to help you to secure more contracts.