Commercialisation: experience from recent Scottish projects · 2018. 1. 30. · •Scottish policy...
Transcript of Commercialisation: experience from recent Scottish projects · 2018. 1. 30. · •Scottish policy...
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DrPaulMoseleyAssociateDirectorScottishFuturesTrust
Commercialisation:experiencefromrecentScottishprojects
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• Scottishpolicycontext• HeatNetworkPartnership/ScottishFuturesTrust• LowCarbonInfrastructureTransitionProgramme• Commercialisation:thejourneyfromOBCtoFBC• Somelessonsfromrecentprojects
Runningorder
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• Reserved&devolvedareas• Scotlandspecificlegislationandpolicytargets• EnergyStrategy(December2017)• Scotland’sEnergyEfficiencyProgramme• AmbitiontoincreasedeploymentofLCheatnetworks• ConsultationonLocalHeat&EnergyEfficiencyStrategies
andRegulationofDistrict&CommunalHeating(Availableat:http://www.gov.scot/Publications/2017/11/6232)
Scottishpolicycontext
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• Est.byScottishGovernment(2013)• Collaborationofagencies• PromotionandsupportofDH• Partners:SFT,RES,EST,SE.• ScotlandHeatMap• Tools,guidance,casestudies(Availableathttp://districtheatingscotland.com)
HeatNetworkPartnership
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Workwithpublic&privatesectors
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SFT’sworkareas
WorldclassinfrastructureforthepeopleofScotland
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• Focussedonbusinessmodels,fundingandfinancing• Workwithpartnerstoachieveasuccessfuloutcome• Guidance• Powersof(Scottish)publicbodies/procurement• Deliverystructuresforheatnetworks• SettingupESCOs• Guideforlocalauthorityprojectsponsors• Heatsupplyagreements
SFT’sroleindistrictheating
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GuidanceforLAprojectsponsors
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• ERDFfunding• PartnershipbetweenScottishGovernment(lead),ScottishEnterprise,Highlands&IslandsEnterprise,ScottishFuturesTrustandsectorspecialists.• Stimulatecommercialinvestmentinlowcarbon• Rangeofsupportmechanisms– projectdevelopment,expertadvice,financialsupportthroughtargetedcalls
• http://www.gov.scot/Topics/Business-Industry/Energy/Action/lowcarbon/LCITP
LowCarbonInfrastructureTransitionProgramme
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• ToacceleratedeliveryoflargescaletransformationallowcarboninfrastructureprojectsinScotland
• Requirements:scale,innovative,LCtechnology,andmustdemonstraterangeofbenefitsforScotland
• Expressionofinterest->OBC->Capitalsupport• Matchfundingrequired• DeliveryprogrammetomeetERDFrequirements
TransformationalLowCarbonDemonstratorCall
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• Governance• Roleofadvisers• Contractingstructure• Routetomarket• Heatsupplyagreements• Riskmanagement• Sanitychecking
Commercialisation:OBCtoFBC
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• Leadership - criticalroleofSRO• Mobilisation – gettingtherightteaminplace(quickly)• Objectives• Partnerinterestsaligned?
• ProjectBoard– goodpractice• Stakeholdermanagement• Approvals - choreography
Governance
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• Authorityas‘intelligentclient’• Continuityofadvisoryteam• Jointappointmentsandmanagingconflictsofinterest• Budgets• Managingoptimismbias– programme/cost• Designdevelopmentversusscopecreep• Asking‘whatif….’
Roleofadvisers
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• Day1solution– butfutureproof• Partnering withtheprivatesector• Corporateorcontractual
• Allocatingrisk• Authorityriskappetite• Optimisingvalueformoney
• Flexibility - ‘standard’riskallocation–butisitrightforyourproject?
Contractingstructure
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• ProsandconsofOJEU/frameworks• Programme,costandquality• Accesstomarket– demonstratingvalueformoney
• Supplierengagementprocess• Visibilityofsub-contracts
• Evaluationcriteria• Contractawardprocess
Routetomarket
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Fundamentals:• WhoamIcontractingwith?• Natureofservicetobeprovided?• Whataretheservicestandards?• Howaretheseenforced?• Customer&supplierresponsibilities• Physical&controlinterfaces• Tariffs– andmechanismforvarying
Heatsupplyagreements(I)
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• NetworkHSAvCustomerHSA• Procurementconsiderations• Impactofregulation• Linktootheragreements• Step-inrights• HeatTrust• Contractmonitoring• (New)SFTGuidance
Heatsupplyagreements(II)
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• Active,rigorous,andcreative• Governance – escalatingrisks/issuetoProjectBoard• Audittrail• Commonchallenges:• Interfaces• Programme• Off-take
Risk&issuemanagement
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FBCshouldclearlydemonstrate:
• projectwillachieveitsobjectives• projectwilldeliverbenefits• risksarewellmanaged
…representsvalueformoney…isaffordable…isdeliverable
Sanitycheck
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