The West Yorkshire Combined Authority is to hire a consortium of legal and other advisors to provide project development services through its ‘Energy Accelerator’ scheme.
The Energy Accelerator “will provide expert technical, financial, commercial and specialist legal advice directly to project sponsors from the public and private sector who require project development support to develop projects through to financial close in the.... low carbon sectors”, the WYCA said.
The sectors are:
- District heating networks;
- Commercial and domestic energy efficiency retrofits including integration of renewable energy sources into the built environment (e.g. solar PV);
- Street lighting and low carbon transport.
The WYCA said it expected that the Energy Accelerator would be required to meet contractual obligations relating to the leverage of project development support to capital investment reaching financial close.
“The procured suppliers will be expected to take a lead role in developing projects from initial appraisal for support through to financial close, and will be required to meet key performance indicators relating to leverage and other factors,” it added.
While the final decision to support projects will rest with the WYCA, the combined authority will make these decisions relying on recommendations made by the suppliers.
The estimated value (excluding VAT) of the services over three years is in excess of £5m. The WYCA said it intended to contract with a single lead supplier that could bring together the desired range of services.
The contracted specialist advisors are expected to consist of:
- Three Commercial Sector Leads covering each investment programme. These leads will be account managers to individual project sponsors and will be responsible for identifying, commissioning and managing specialist support.
- One Technical Cross Sector Lead
- A consortium of technical, commercial, financial and legal advisors.
The contract, which is valued at £4-5m, will start on 1 May 2017 and end on 30 April 2020.