Eastbourne Borough Council has gone out tender with a contract to put an energy and sustainability joint venture in place with an estimated total value of £500 million-plus over a 30 year period.

Setting out details of the proposed joint venture, Eastbourne Borough Council said it wants to respond to the energy sector's trilemma of increasing prices, future shortage of supply, and the need to reduce carbon emissions. The Council also wants to be prepared for the challenges and uncertainty the food chain will face when major global food regions are under threat from extreme weather patterns.

To deliver the transformation will require a step change in investment and the setting up of a joint venture (JV) as a trading arm of the Council. The Council said it is envisaged that once the JV is set up it will “seek out the commercial opportunities and make the transformation happen”  - it is also envisaged that it will be able to function "with little or no Government subsidy."

The JV could also benefit from the Council's close partnership with Lewes District Council - this would increase the number of potential customers and the Lewes area has more land available to develop energy generation sites.

EBC is now seeking a private sector partner (or partners) to participate and invest in a public-private partnership which may also extend to other local government and public sector related organisations and associated partners within the local DNO region and the UK.

The transformation will see new infrastructure and structures being developed and commercial opportunities in a number of sectors, including:

• Energy generation — Investment in a town-wide network of energy hubs, some utilising the areas assets natural assets, making Eastbourne an energy ‘island’;
• Energy supply — Potential to supply large sections of town with Council backed supply licence;
• Energy R&D — Bring commercial reality to new technologies that can deliver cleaner cheaper energy e.g. biogas replacing natural gas
• Fresh food production — Investment in a town-wide network of next generation commercial greenhouses (e.g. hydroponic), linked with energy generation;
• Fresh fish or protein production — Investment in a town-wide network of sustainable fish or protein farms, linked with energy generation.
• Waste — collection and circular economy.
• Water — supply and adaption.

The main place of performance will be the geographic areas of Kent, Surrey, Brighton and Hove, East Sussex and West Sussex but may extend to the UK over the life of the joint venture.

The commercial opportunities that would be available for each of the sustainability sectors listed are based on what EBC and other participants want to achieve over the next 20-30 years. A list of potential starter projects have already been identified.

The final joint venture structure and commercial terms is something the Council said it wants to develop during the negotiation process. EBC's preferred option is to implement an incremental partnership drawing on the approaches developed by joint venture models such as the Hub concept that was developed by the Scottish Futures Trust.

The Council said it is willing to discuss the benefits of setting up a joint venture company at the outset with potential partners during the procurement process. The primary purpose of the initial contractual joint venture would be to develop business cases.

The JV could also benefit from the Council's close partnership with Lewes District Council as this would increase the number of potential customers and the Lewes area has more land available to develop energy generation sites.

The Council is anticipating that the arrangements could be in place from April 2017 and that the arrangement would be for at least in the region of 20 years. Some elements of the projects could cover a longer period and others may have a shorter life span.

Although not guaranteed, the overall estimated value of the arrangements with the participation of EBC is “considered likely to exceed £500 million” over a 20 year period.

Anticipated start date for the contract is 30^th June 2017, with a projected completion date of 30^th June 2047.

Time limit for receipt of tenders or requests to participate is 18^th July 2016 - estimated date of dispatch of invitations to tender or to participate to selected candidates is 1^st September 2016.

Click here to access the tender documentation