DrPaulMoseleyAssociateDirectorScottishFuturesTrust

Commercialisation:experiencefromrecentScottishprojects

• Scottishpolicycontext• HeatNetworkPartnership/ScottishFuturesTrust• LowCarbonInfrastructureTransitionProgramme• Commercialisation:thejourneyfromOBCtoFBC• Somelessonsfromrecentprojects

Runningorder

• Reserved&devolvedareas• Scotlandspecificlegislationandpolicytargets• EnergyStrategy(December2017)• Scotland’sEnergyEfficiencyProgramme• AmbitiontoincreasedeploymentofLCheatnetworks• ConsultationonLocalHeat&EnergyEfficiencyStrategies

andRegulationofDistrict&CommunalHeating(Availableat:http://www.gov.scot/Publications/2017/11/6232)

Scottishpolicycontext

• Est.byScottishGovernment(2013)• Collaborationofagencies• PromotionandsupportofDH• Partners:SFT,RES,EST,SE.• ScotlandHeatMap• Tools,guidance,casestudies(Availableathttp://districtheatingscotland.com)

HeatNetworkPartnership

Workwithpublic&privatesectors

SFT’sworkareas

WorldclassinfrastructureforthepeopleofScotland

• Focussedonbusinessmodels,fundingandfinancing• Workwithpartnerstoachieveasuccessfuloutcome• Guidance• Powersof(Scottish)publicbodies/procurement• Deliverystructuresforheatnetworks• SettingupESCOs• Guideforlocalauthorityprojectsponsors• Heatsupplyagreements

SFT’sroleindistrictheating

GuidanceforLAprojectsponsors

• ERDFfunding• PartnershipbetweenScottishGovernment(lead),ScottishEnterprise,Highlands&IslandsEnterprise,ScottishFuturesTrustandsectorspecialists.• Stimulatecommercialinvestmentinlowcarbon• Rangeofsupportmechanisms– projectdevelopment,expertadvice,financialsupportthroughtargetedcalls

• http://www.gov.scot/Topics/Business-Industry/Energy/Action/lowcarbon/LCITP

LowCarbonInfrastructureTransitionProgramme

• ToacceleratedeliveryoflargescaletransformationallowcarboninfrastructureprojectsinScotland

• Requirements:scale,innovative,LCtechnology,andmustdemonstraterangeofbenefitsforScotland

• Expressionofinterest->OBC->Capitalsupport• Matchfundingrequired• DeliveryprogrammetomeetERDFrequirements

TransformationalLowCarbonDemonstratorCall

• Governance• Roleofadvisers• Contractingstructure• Routetomarket• Heatsupplyagreements• Riskmanagement• Sanitychecking

Commercialisation:OBCtoFBC

• Leadership - criticalroleofSRO• Mobilisation – gettingtherightteaminplace(quickly)• Objectives• Partnerinterestsaligned?

• ProjectBoard– goodpractice• Stakeholdermanagement• Approvals - choreography

Governance

• Authorityas‘intelligentclient’• Continuityofadvisoryteam• Jointappointmentsandmanagingconflictsofinterest• Budgets• Managingoptimismbias– programme/cost• Designdevelopmentversusscopecreep• Asking‘whatif….’

Roleofadvisers

• Day1solution– butfutureproof• Partnering withtheprivatesector• Corporateorcontractual

• Allocatingrisk• Authorityriskappetite• Optimisingvalueformoney

• Flexibility - ‘standard’riskallocation–butisitrightforyourproject?

Contractingstructure

• ProsandconsofOJEU/frameworks• Programme,costandquality• Accesstomarket– demonstratingvalueformoney

• Supplierengagementprocess• Visibilityofsub-contracts

• Evaluationcriteria• Contractawardprocess

Routetomarket

Fundamentals:• WhoamIcontractingwith?• Natureofservicetobeprovided?• Whataretheservicestandards?• Howaretheseenforced?• Customer&supplierresponsibilities• Physical&controlinterfaces• Tariffs– andmechanismforvarying

Heatsupplyagreements(I)

• NetworkHSAvCustomerHSA• Procurementconsiderations• Impactofregulation• Linktootheragreements• Step-inrights• HeatTrust• Contractmonitoring• (New)SFTGuidance

Heatsupplyagreements(II)

• Active,rigorous,andcreative• Governance – escalatingrisks/issuetoProjectBoard• Audittrail• Commonchallenges:• Interfaces• Programme• Off-take

Risk&issuemanagement

FBCshouldclearlydemonstrate:

• projectwillachieveitsobjectives• projectwilldeliverbenefits• risksarewellmanaged

…representsvalueformoney…isaffordable…isdeliverable

Sanitycheck