CHESHIRE AND WARRINGTON’S ENERGY SECTOR – A FOURTH STRATEGIC
PRIORITY?
May 2015
1. Introduction
1.1 Background and Summary of Requirements
During the preparation of its original Strategic Economic Plan in 2013 three ‘Strategic Priorities’ were
identified on the basis that they used the unique assets within the sub-region to drive economic
growth. These priorities were: 


Atlantic Gateway
Cheshire Science Corridor
Crewe High Growth City (HS2)
The evidence gathering process identified that energy offered the potential for a fourth strategic
priority, but this was not determined conclusively. In addition, the LEP’s European Structural
Investment Funds (ESIF) Strategy has allocated £13.8 million to spend to support the shift to a low
carbon economy across all sectors.
The LEP has now indicated that it will look to review the case for including the Energy Sector as a
fourth Strategic Priority when the SEP is revised and updated. A study is required to review and fill
identified gaps in the evidence base to support this and also inform future calls against the ESIF
Thematic Objective 4 (TO4) (Supporting the Shift towards a Low Carbon Economy in All Sectors).
The Cheshire and Warrington sub-region is perceived to have a number of key assets and
opportunities in relation to energy, given the concentration of companies operating in the energy
sector. In particular there are thought to be particular strengths in the nuclear and energy networks
sectors as well as unique opportunities for underground gas storage, coal bed methane and shale
gas extraction and ground source heat networks.
The University of Chester’s Thornton Energy Centre, located at the former Shell Research and
Development Centre, offers significant opportunities to support innovation and catalyse growth in
the sector. Thornton has also been identified as a location for the new UK Energy Security and
Innovation Observing System.
Cheshire and Warrington is also home to a number of energy intensive industries for whom long
term energy affordability and security of supply will be key factors in their continued choice of the
sub region as a manufacturing base.
There are a number of initiatives underway in the sub-region related to Energy such as the industryled Cheshire Energy hub and the emerging Energy Systems Catapult proposition which point to the
potential for a world-class energy cluster in Cheshire and Warrington. Reflecting the views and
ambitions of the sector will be an important element of this commission.
2. Approach
2.1
Detail of requirements
Cheshire and Warrington LEP is seeking to appoint suitably experienced and qualified consultants to
undertake a detailed study to inform the LEP’s thinking on development of an energy cluster in the
sub-region and also help to define future calls for the LEP to promote under TO4.
Prior to commencing detailed work the Consultants will work with the Steering Group established to
oversee the study to agree the scope of the study and definition for the ‘Energy Sector’ in order to
make sure that the activity is clearly defined and properly focussed, and that there is clarity on what
is in and out of scope.
Under the commission the Consultants will:
a) Undertake a high-level desktop review of broader North West and national research into the
potential of the energy sector to drive economic growth.
b) With specific reference to previous Cheshire and Warrington LEP area-commissioned studies
and nationally available energy sector information provide an indication of the relative scale
and significance of the energy sector in the Cheshire and Warrington sub-region, compared
to other areas of England. Previous studies include: I.
II.
III.
IV.
V.
VI.
Mickledore Sector Study Report (2012)
Low Carbon Environmental Goods and Services Study (2013)
Global Energy Hub Study (2013)
Strategic Economic Plan (2013)
Cheshire West and Chester Energy Sector Study (Amion Consulting, 2015)
CWLEP High Level Skills Study (2015)
c) Produce GIS-based mapping to show the location of: I.
II.
III.
Energy related companies based or with major operations in Cheshire and
Warrington (as per the agreed definition of the sector)
Energy related science, innovation and knowledge-based assets in Cheshire and
Warrington and adjacent areas (referencing work done by New Economy in its NW
Energy Assets Report, March 2014)
Energy related opportunities (e.g. energy-from-waste proposals, geothermal,
unconventional oil and gas extraction)
d) Engage with key leaders in the energy sector locally, reflect on recent policy decisions and
the potential for these to increase the potential viability of a Cheshire and Warrington-based
“global energy hub” / energy cluster.
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e) Identify the relative strengths and unique assets in the Cheshire and Warrington energy
sector in comparison to other localities that feature energy as a priority. This includes
identifying existing energy sector networks and forums.
f)
Identify the ‘ideal’ interventions and infrastructure needed to encourage innovation,
support supply chain development and maximise the potential of the Cheshire and
Warrington Energy Sector.
g) Identify practical action that the LEP and or others could take to support such interventions,
or create opportunities for existing activities to maximise their contribution to growing the
Cheshire and Warrington economy.
2.2
Deliverables
The main deliverable of this project is a report which provides a clear picture of the viability of a
nationally significant energy cluster in Cheshire and Warrington, and a series of recommendations as
to the types of interventions which the Local Enterprise Partnership could support to support
development of the cluster. This should include specific recommendations on potential ERDF-eligible
activity to inform future calls under TO1 (Strengthening Research, technological Development and
Innovation) and TO4 (Supporting the Shift towards a Low Carbon Economy in All Sectors).
Demonstrating effective stakeholder engagement will be an important aspect of the commission and
it expected that the appointed consultants will actively support and engage in up to three events
organised specifically in connection with the study. Engagement with key industry figures is an
important element of this activity.
The LEP will also agree with the appointed consultant the production of presentation materials to
support the report’s findings.
2.3
THE TEAM
The successful consultants will need to demonstrate extensive experience of the sector-based
studies, ideally including the energy sector. Experience of working with the public and private
sectors, including FE and HE institutions, in an inclusive and collaborative way.
They will also need to demonstrate the ability to field a team with relevant expertise, deployed
appropriately and in line with the work programme.
2.4
PROJECT MANAGEMENT ARRANGEMENTS
A dedicated steering group containing representatives from the LEP, local authorities, University of
Chester and the Cheshire Energy Hub will be established to oversee the study. Day to day project
management will be provided by Andy Hulme, the LEP’s Programme and Strategy Manager.
2.5
Timescales
Indicative timescales as follows: -
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Activity
Timescale
Tender
May / June 2015
Selection and appointment
End-June
Inception meeting
July 2015
Interim report
End-September 2015
Final report
Mid-November 2015
The successful consultant will be expected to attend regular (monthly) progress meetings during the
course of the commission and liaison via telephone and e-mail with officers and key stakeholders as
necessary.
3. RESPONDING TO THIS SPECIFICATION
Tenders must address all the requirements and be in the format requested below. Tenders
not in this format will not be considered. Tenderers are requested to provide core
information in summary form with detail in appendices.
3.1
The following must be supplied:
General
3.1.1 Organisation identity including name, address, telephone number, e-mail address,
company registration number, VAT registration number and website address (if
applicable).
3.1.2 Details of the main point of contact within the organisation for this tender.
3.1.3 Name, address, telephone number and e-mail address of any third parties involved
in this tender.
3.1.4 A list of all key personnel to be deployed on the project and details of their previous
relevant experience.
3.1.5 Details of recent experience of delivering similar commissions together with details
of at least one relevant referee.
3.2
Proposals
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3.2.1 A response on a point by point basis outlining how the requirements specified in
section 2 will be met and demonstrating experience in the successful delivery of
similar projects. Process and work-programme diagrams can be included.
3.3
Pricing
3.3.1 The cost associated with delivering the work programme. All prices must be fixed
and firm, quoted in pounds sterling and exclusive of VAT. Tenderers should detail
any ancillary costs and expenses included in the price. Note that the budget for this
work is in the range £40k - £45k.
Submission
3.4
Tenders must be completed in accordance with the format specified above. Tenders
which are incomplete will not be evaluated.
3.5
Three (3) copies of the tender should be submitted in a sealed envelope marked
“Tender for Cheshire and Warrington LEP Energy Study” and addressed to:
Name:
Andy Hulme
Address:
Cheshire and Warrington LEP
Richmond House, Gadbrook Business Park, Rudheath, Northwich,
CW9 7TN
3.6
Deadline for receipt of tenders to the above address is noon on Monday 15th June
2015.
3.7
An electronic version of the tender should also be sent to
andy.hulme@871candwep.co.uk
3.8
Tenders delivered after this time will not be accepted.
4. EXAMINATION AND EVALUATION OF TENDERS
4.1
Tenders will be assessed initially by reference to the following pass / fail criteria:
(i)
Completeness of proposals and tender documentation as specified in Sections 2
(Approach) and 3 (Responding to this Specification) of this document;
(ii)
Stated ability of the Tenderer to meet all of the requirements specified in Section
2 of this document;
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4.2
Award Criteria
Proposals will be scored against the following criteria, from a maximum of 100 marks
weighted as indicated;





4.3
Knowledge and understanding of the energy sector and the LEP’s
requirements
Experience of successfully delivering similar commissions
Cost / Value for money
Content, delivery and originality
Team experience / resourcing
30
20
20
20
10
Clarification
During the evaluation period clarification may be sought in writing (or via e-mail) from
Tenderers. Responses to requests for clarification may not materially change any of the
elements of the tenders submitted. The LEP may choose to invite a number of the most
competitive Tenderers to make presentations on their proposals for the purpose of
elaboration, clarification and / or aiding mutual understanding. Presentations would be
held during w/c 22nd June 2015 with a view to making an award by Monday 29th June 2015.
5. GENERAL INFORMATION
5.1
Financial Arrangements
Payments for services covered by this invitation to tender will be on submission of
appropriate invoices, subject to Cheshire and Warrington LEP’s standard payment terms,
and which will be based on agreed deliverables. Invoicing arrangements will be agreed with
the successful provider, following the award of contract.
5.2
Contract
A contract will be awarded to the Tenderer whose proposal is deemed to be the most
economically advantageous subject to agreement on conditions of that contract. Please
note that the LEP reserves the right to cancel the Tender process at any time prior to a
contract being entered into.
The LEP is not bound to accept the lowest price, or any tender submitted.
5.3
Further Information and Queries
The project could be subject to additional England European Regional Development Fund as
part of the European Structural and Investment Funds Growth Programme 2014-2020. The
Department for Communities and Local Government is the Managing Authority for
European Regional Development Fund. Established by the European Union, European
Regional Development Fund funds help local areas stimulate their economic development
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by investing in projects which will support innovation, businesses, create jobs and local
community regenerations. For more information visit https://www.gov.uk/europeangrowth-funding
Any clarifications to information contained in this document must be submitted in writing
(by email) no later than Friday 5th June 2015. Any additional information provided will be
made available to all potential Tenderers via the LEP website, www.871candwep.co.uk.
Name: Andy Hulme
Email: andy.hulme@871candwep.co.uk
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