Three in £750m Sussex Green Deal race

Contractors Carillion and Mears and energy firm Centrica are set to slug it out in a three-way battle for the £750m Sussex Green Deal programme, Building understands.

The three firms are competing for the job, which will see the winning bidder take on a three year deal, which can be extended for up to ten years, to retrofit properties in Sussex under the Sussex Energy Saving Programme.

The procurement of a private sector delivery partner is being led by West Sussex council but the scheme will be open to use by other public sector bodies in the Sussex area.

West Sussex council will finance £75m of work but the rest will be leveraged by the provider through the Green Deal scheme or the Energy Company Obligation, the government’s subsidy scheme for energy efficiency or other financiers. The council anticipates 18,000 households will be upgraded in the initial three years.

In December, when the council announced it was looking for a Green Deal partner, Lionel Barnard, deputy leader of the council, said the scheme would help protect Sussex residents from energy price rises.

He added: “We are interested in using the Green Deal to further our long term aims of economic growth, including growing West Sussex’s green economy and meeting our own and national carbon reduction targets.”

The winning firm will be required to deliver energy efficiency improvements, domestic energy generation schemes and other measures to reduce the energy consumption of bill payers in the region.

The OJEU for the job said the firm appointed “must have the capacity and resources to provide an effective and customer focused service”, including all management, finance and IT systems necessary.

The programme is focused on Green Deal activities but may include other measures to improve home energy efficiency as well.

A firm is expected to be appointed in September 2013.

Ray Blundell, Mears’ Director of Business Development, commended West Sussex County Council for it’s “innovative approach to tackling fuel poverty and lowering carbon emissions”.

He added: “The Sussex Energy Saving Partnership has community engagement at its heart, complementing one of Mears’ major strengths - supporting local communities.”

Carillion has form in winning schemes such as this and is already delivering the £1.5bn Birmingham Energy Savers Green Deal scheme.