Published date: 18 December 2023

Open future opportunity - This means that the buyer is not yet ready to invite bid applications but early notification has been provided and some dialogue may be possible.


Approach to market date: 15 July 2024

Contract summary

Industry

  • Foreign economic-aid-related services - 75211200

Location of contract

Any region

Value of contract

£185,000,000

Procurement reference

tender_304184/1295088

Published date

18 December 2023

Approach to market date

15 July 2024

Contract start date

3 March 2025

Contract end date

30 March 2029

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

Yes

Description

Please note that this PIN is issued to inform the market of an upcoming market engagement event and is not a formal PIN marking the start of a procurement procedure. More information about the next steps and forward timeline will be provided in the meeting and in future notices. All information shared in this notice and at the event is indicative and subject to full and final approvals by the Department.

The UK Department of Energy Security and Net Zero is exploring the development of a new facility - the Climate Innovation Pull Facility. Through pull finance, this facility will support innovation, scale up and market building for climate change mitigation solutions for developing country contexts, focusing on innovative clean energy technologies and business models in a small number of specific applications/sectors, where the evidence shows support is most needed. The planned facility is up to £185m, and subject to approvals. If agreed would be part of the Department's International Climate Finance portfolio and funded with Official Development Assistance (ODA).

What do we mean by "pull mechanisms"? In public innovation financing, "pull mechanisms" create incentives for innovators and other actors by creating viable market demand. They seek to reduce viability gaps and induce innovation by signalling demand for solutions to specific problems. Mechanisms often cited include Advanced Market Commitments, Results or Outcomes Based Financing, Prizes/Challenges, innovation bulk procurements, Contracts for Difference, among others. By contrast, much innovation support has to date utilised "push mechanisms" directly subsidising up-front R&D costs.

In terms of climate mitigation solutions, the facility will have a particular focus on clean energy innovation themes. The work being explored would be linked to the Ayrton Fund commitment by the UK Government, to support clean energy research, development and demonstration (RD&D), as part of the wider UK commitment to tackle climate change. Examples of Ayrton Fund thematic challenges are set out on gov.uk.

To explore this concept with stakeholders and the market, the Department hosted some initial engagement in July 2023. As the concept is now progressing further we would like to take the opportunity to provide a further update to the market on our thinking and test some specific ideas for how we plan to structure the facility, in particular some of the commercial elements of the programme. Information from previous sessions can be accessed on our e-sourcing portal: https://beisgroup.ukp.app.jaggaer.com/esop/guest/go/opportunity/detail?opportunityId=55356

More information

Additional text

The team will be hosting an online presentation on 27 February 2024 at 13:00 GMT to share our current thinking on the scope and content of the programme as well as options for commercial structuring and forward procurement procedure. This will be followed by opportunities in the following 2-3 weeks for the market to provide feedback on a one-to-one basis via call or in writing. Opportunities for calls are time-limited at this stage but we hope to offer multiple feedback avenues to enable as much engagement as possible.

To attend this presentation, please register interest through the following link by 13:00 25 February 2024. We will then share the link to join the session via Microsoft Teams. If you are registering after this date please also email the procurement inbox at internationalclimateandenergy.procurment@energysecurity.gov.uk so we can ensure you receive joining instructions in time.

https://forms.office.com/e/vjCBdKd4bF

How to apply

Follow the instructions given in the description or the more information section.

About the buyer

Contact name

Department for Energy Security and Net Zero

Address

3-8 Whitehall Place
London
SW1A 2EG
England

Email

internationalclimateandenergy.procurement@energysecurity.gov.uk