Strategy/ Drivers

It is vitally important to ascertain from the outset of a scheme what the principal drivers of any Energy scheme are. District Heating Schemes need to offer the end user a low cost, secure and reliable service whilst also delivering value to the main developer and/or investor. This needs to be achieved whilst delivering the target environmental benefits as well as the planning conditions that are imposed on the site.

Using its experience and industry knowhow, Ener-Vate can work with the client to ensure that all aspects of the scheme requirements are evaluated in a balanced way and that the scheme begins with the correct motives and understanding of how each driver impacts on the others.

A very important aspect of initial project development and strategy is awareness of the risks and how each should be modelled and balanced. Each scheme is unique and therefore a thorough assessment of risk and potential reward should be undertaken at a very early stage to establish the strategy. This should include the short, medium and longer term ambitions of the investor.

Market Knowledge

Ener-Vate has vast experience within the UK District Heating market with each director having worked within the industry for over 10 years. Our wide-ranging portfolio of clients has led us to work with and alongside most of the major market suppliers which has enabled us to build a thorough database of information that we can use to help clients in their evaluation of market players.

We consistently update the costs we hold based on the most recent information received and use these within our modelling assumptions.
Having this deep and wide market knowledge, enables us to help the client to develop schemes from the outset in a way that will attract the best investment from the ESCo providers as well as Design & Build/Operation and Maintenance providers. We understand the strengths and weaknesses of the market and this knowledge helps to ensure that tender exercises can be focused and deliver the required results.

Procurement

Ener-Vate has vast experience within the UK District Heating market with each director having worked within the industry for over 10 years. Our wide-ranging portfolio of clients has led us to work with and alongside most of the major market suppliers which has enabled us to build a thorough database of information that we can use to help clients in their evaluation of market players.

With the knowledge of the market in place Ener-Vate can provide our clients with a full experienced and knowledgeable end-to-end procurement service of market engagement. With the full input of the client and based on the strategy required by the investor we can write the initial tender pack that are used to engage with the market, evaluate and interview the tenderers and then produce full scoring and evaluation matrix that aid final appointment by producing an auditable trail of procurement whilst gaining the most value.

Structure

Once the initial evaluation of the scheme investors, the scheme’s drivers and the scheme’s intended outcomes are developed and known at the initial stage then it is vital to prepare the structure of the scheme in the most appropriate way to deliver the required outputs.

Ener-Vate understands the most common type of structure options that are prevalent in the market today as well as evaluate alternate structures bespoke to the client depending on the aspirations, future aspirations and possible exit strategies that the client has.

It is imperative that the structure balances all of the potential risks and rewards of each of the parties involved whilst maintaining the continuity of responsibility of delivering the heat to end users in a secure, low cost manner.

Knowing the structures most common in the market helps us to ensure that it is engaged in a way that we know will produce the best possible response and investment.

Project Commercial Modelling

A huge part of any scheme or project, the commercial modelling is the foundation on which investment and decisions are made.

We recognise that Commercial Modelling of a project has to be a process that adapts to the changing conditions of the world of property and energy development. The way in which the commercial modelling is carried out takes into account all aspects of the scheme. It is imperative to understand how each of the commercial inputs, the client information, the project information and timelines and masterplan assumptions can impact on the outputs and viability of a scheme. Ener-Vate is very experienced in this aspect of project development and we know which are the most important items to balance correctly to achieve the best result for developers and customers alike.

The commercial models produced are presented to clients in an easy to view format which highlights the main areas of risk. We create an easily adaptable model in which different input and masterplan scenarios can be viewed to assess the impact to the modelling outputs without the need to fundamentally change the background model.

Technical Design

It is an obvious requirement that all District Heating Schemes require a technical design to be carried out in order to ensure that the drivers and target outputs can be met.

However, sometimes the technical aspect of the development of a scheme can dominate all other factors which can lead to an imbalance or even worse mean that a scheme looks not to be viable or deliverable. Clients can spend un-necessary early cash producing a high level of technical design not required at early project development stages
Ener-Vate has a good depth of understanding of the building blocks of the technical solution based on years of producing early modelling outputs and option solutions for clients that can be applied to schemes at the early stage. Once the direction and basic structure of the scheme is known we then engage with and help the client to develop a more detailed technical solution alongside the client design team or external, recognised industry design contractors.

Legal Agreement Development

One of the largest tasks that needs to be undertaken on the development of a District Heating Scheme. It is essential that the various contracts between the parties of the agreed structure deliver heat to the end customer is a secure and low-cost way that can be forecast long into the future.

Ener-Vate sits with the client and his legal team to negotiate the contract suite with the suppliers. This includes the main project agreement between the client and the nominated ESCo along with all the schedules such as

 the customer supply agreements
 guaranteed supply conditions
 price methodologies and comparators
 plot agreements
 Housing Authority Agreements
 D&B Contracts
 O&M Contracts
 Loan/funding agreements
 Government benefit applications/agreements
 3rd Party Thermal Party Agreements

Our excellent knowledge of the legal agreements structures and inter-relationships helps the client to ensure that all of the risk transfers are carried out in the best way possible to deliver a successful scheme.

ESCo Performance Monitoring

Once a scheme is designed, built and operational it is important that it delivers the requirements on customer cost and satisfaction and all environmental targets. There will be reporting requirements within the ESCo project agreement with the client requiring it to report its operational performance at regular intervals.

Using its experience, Ener-Vate can provide a supporting asset management service to the client providing a knowledgeable insight to the ESCo performance. We will aid the client in identifying any early signs of non-performance and/or trends and suggest early mitigation of them. We also help to liaise with customers of the ESCo, providing an independent view to any operational issues that arise.

Another aspect of the post operational phase is to evaluate the benefits of 3rd party connections or sources of heat that can add additional value to the scheme.

Ener-Vate Provides a Propriety Development Advisory Service Across the Value Chain
100%
•Assist clients in developing the strategy for decentralised energy supply
•Understand and advise on the risks & rewards of retaining and adding value to existing services provided
•Understand, evaluate and advise on aspirations to either retain or seek exit strategies
100%
• From within the industry with excellent understand the current marketplace
• Understand what makes attractive opportunities for the market
• Good understanding of the strengths & weaknesses of the market players
• Good understanding of the future developments within the market
100%
•Excellent knowledge of the market benchmarks within the industry
•Provide end-to-end service of market engagement, development of tender packs, evaluation of tenders, interviews and development of selection criteria
•Scoring matrices and auditable justification for selection
100%
•Excellent understanding of the commercial structures accepted within the market
•Develop structures specific to the client requirements built on desires, future aspirations / exit strategies
•Thorough understanding on risk mitigations and how these are managed
100%
•Excellent knowledge in the development of financial models
•Excellent market understanding and benchmarks
•Detailed sensitivity appraisals
•Iterative process that often influences the commercial structure, legal agreements and technical solutions
100%
•Good level of technical understanding within the industry across multiple technologies
•Complimentary service to support dedicated Technical advisors
100%
•Excellent working knowledge of the legal agreement structures and inter-relationships
•Excellent working knowledge of the risks transfers required and mitigations
•Complimentary service to support external dedicated legal advisory
100%
•Provide support and advisory services to compliment asset management
•Performance monitoring of the service providers in line with agreed service leval agreements and KPI’s
•Identify issues early and place mitigations
•Maximise the revenues – sweat the asset
Ener-Vate Provides a Propriety Development Advisory Service Across the Value Chain
100%
•Assist clients in developing the strategy for decentralised energy supply
•Understand and advise on the risks & rewards of retaining and adding value to existing services provided
•Understand, evaluate and advise on aspirations to either retain or seek exit strategies
100%
• From within the industry with excellent understand the current marketplace
• Understand what makes attractive opportunities for the market
• Good understanding of the strengths & weaknesses of the market players
• Good understanding of the future developments within the market
100%
•Excellent knowledge of the market benchmarks within the industry
•Provide end-to-end service of market engagement, development of tender packs, evaluation of tenders, interviews and development of selection criteria
•Scoring matrices and auditable justification for selection
100%
•Excellent understanding of the commercial structures accepted within the market
•Develop structures specific to the client requirements built on desires, future aspirations / exit strategies
•Thorough understanding on risk mitigations and how these are managed
100%
•Excellent knowledge in the development of financial models
•Excellent market understanding and benchmarks
•Detailed sensitivity appraisals
•Iterative process that often influences the commercial structure, legal agreements and technical solutions
100%
•Good level of technical understanding within the industry across multiple technologies
•Complimentary service to support dedicated Technical advisors
100%
•Excellent working knowledge of the legal agreement structures and inter-relationships
•Excellent working knowledge of the risks transfers required and mitigations
•Complimentary service to support external dedicated legal advisory
100%
•Provide support and advisory services to compliment asset management
•Performance monitoring of the service providers in line with agreed service leval agreements and KPI’s
•Identify issues early and place mitigations
•Maximise the revenues – sweat the asset
Ener-Vate Provides a Propriety Development Advisory Service Across the Value Chain
100%
•Assist clients in developing the strategy for decentralised energy supply
•Understand and advise on the risks & rewards of retaining and adding value to existing services provided
•Understand, evaluate and advise on aspirations to either retain or seek exit strategies
100%
• From within the industry with excellent understand the current marketplace
• Understand what makes attractive opportunities for the market
• Good understanding of the strengths & weaknesses of the market players
• Good understanding of the future developments within the market
100%
•Excellent knowledge of the market benchmarks within the industry
•Provide end-to-end service of market engagement, development of tender packs, evaluation of tenders, interviews and development of selection criteria
•Scoring matrices and auditable justification for selection
100%
•Excellent understanding of the commercial structures accepted within the market
•Develop structures specific to the client requirements built on desires, future aspirations / exit strategies
•Thorough understanding on risk mitigations and how these are managed
100%
•Excellent knowledge in the development of financial models
•Excellent market understanding and benchmarks
•Detailed sensitivity appraisals
•Iterative process that often influences the commercial structure, legal agreements and technical solutions
100%
•Good level of technical understanding within the industry across multiple technologies
•Complimentary service to support dedicated Technical advisors
100%
•Excellent working knowledge of the legal agreement structures and inter-relationships
•Excellent working knowledge of the risks transfers required and mitigations
•Complimentary service to support external dedicated legal advisory
100%
•Provide support and advisory services to compliment asset management
•Performance monitoring of the service providers in line with agreed service leval agreements and KPI’s
•Identify issues early and place mitigations
•Maximise the revenues – sweat the asset