The UK has set an ambitious goal to hit Net Zero by 2050; that’s zero greenhouse emissions from all human activity. It’s ambitious but not impossible, especially if public sector procurement comes to the party.
There are several routes to net zero, which suppliers can leverage to improve their chances of winning renewable energy tenders. Carbon Reduction Plans (CRPs) are a great example.
A Carbon Reduction Plan tells contracting authorities that you are committed to shrinking your carbon footprint, thereby reducing greenhouse gas emissions. It’s evidence that you take net zero seriously and are on a mission to reach the target ASAP.
Procurement Policy Note (PPN) 06/21 makes a CRP mandatory for all contracts worth £5 million and up per year. However, it’s recommended that all suppliers in public procurement have a Carbon Reduction Plan in place to align with their sustainability goals.
Future-Proof Your Business for Net Zero
A comprehensive CRP helps future-proof your enterprise as national and local climate change policies are inevitably adjusted.
For example:
- CRPs could be extended to contracts below £5 million.
- Carbon reduction goals could be amended by industry with stricter requirements in some or fewer requirements in others.
- Compliance with carbon reduction policies could become stricter with severe penalties for non-compliance.
The thing is, creating and implementing a CRP is not easy, especially if you have a small business that lacks the time and resources to develop a compliant plan.
Fortunately, there are a few solutions to the thorny problem. You could partner with enterprises that have CRPs in place. They can help you create a comprehensive and compliant plan, based on their experience.
Or, you could book a session with a consultancy that specialises in carbon reduction-related services, including low-carbon public contracts. You might find that one session is all you need to get the hang of CRPs and CRP reporting.
Understanding Renewable Energy
Renewable energy is essential to the UK’s goals to reduce reliance on fossil fuels in all aspects of life, especially within the public sector. The most common sources of renewable energy are sunlight, wind, water, biomass, and geothermal heat. Each has a role to play in the UK’s net zero plan. By leveraging renewable sources, businesses can significantly reduce their carbon footprint and contribute to a greener future.
Government Investing in Renewable Energy
The Labour Party has developed the Great British Energy Bill, which, among other things, will invest £8.3 billion in energy security, which includes renewable energy. The plan is to double onshore wind energy, quadruple offshore wind energy, and triple solar power by 2030.
There are thousands of opportunities for suppliers right there. Plenty of scope for businesses to enter the renewable energy market and bid on the host of diverse tenders that will become available.
If you need more convincing to add a renewable slant to your business’s offerings, consider that a new five-year action plan for reforming the energy system will generate an annual investment of £40 billion in clean energy infrastructure.
Sustainability Procurement in the UK
Globally, procurers are pushing for more sustainable supply chains. The UK’s commitment to the movement is evident in the new Procurement Act 2023, and the focus on social value and broader sustainability requirements in public sector renewable energy contracts.
Sustainability in procurement is broad, indeed. It covers the entire supply chain, from raw material production to safe disposal or (hopefully) reuse or recycling. So, it’s a very long view of the process.
Renewable energy certificates (RECs) are essential tools for validating the source of energy supplied to consumers, ensuring transparency and accountability in the renewable energy market.
It’s important for suppliers to hold up their end. This includes early engagement with contracting authorities and collaboration with stakeholders to fully understand sustainability-focused tenders for SMEs and larger enterprises.
It could also include upgrading tech and skills training, which is expensive. It’s important to weigh long-term benefits against short-term costs. More often than not, the long-term benefits outweigh immediate costs, but this varies from business to business. Bear in mind that you don’t need to revamp your systems in one expensive go; you can do it gradually.
It helps to adopt a new mindset, one that develops an innovative culture within your business. Innovation in your operations, goods, or services could reduce the need for new equipment, saving you money on several fronts.
Developing a Renewable Energy Procurement Strategy
An energy procurement strategy enables suppliers (and contracting authorities) to manage energy costs, minimise environmental impact, and meet sustainability targets. Strategies are unique because they’re tailored to each organisation’s specific energy needs, paying attention to budgets and sustainability objectives.
Energy procurement strategies contain details on renewable energy sources (solar, wind, etc.), types of renewable energy contracts, and available green energy suppliers.
Available green energy suppliers are particularly important because you don’t want the supply process to negate the benefits of a comprehensive and robust renewable power plan.
Industry research and peer reviews help you make informed energy procurement decisions that can lead to reduced energy costs, enhanced energy security, and a significant reduction in your carbon footprint.
Certifications for Renewable Energy Suppliers
One of the most important sustainable public procurement tips is to collect essential certifications. There are a few certification options for public procurement suppliers to consider. Perhaps the most important are the ISO certifications. ISO is an international standards organisation that sets quality standards for several key factors in business.
For example:
ISO 14001 is a certification for the quality of environmental management systems, with a particular focus on your business’s day-to-day activities.
ISO 50001 builds on the foundation set by ISO 14001, with a particular focus on energy management systems. Essentially, it provides a framework for you to establish effective and impactful energy management systems:
- Develop policies for energy efficiency
- Set targets and objectives
- Collect and analyse energy-related data for informed decision-making
- Measure results
- Evaluate results
- Ensure ongoing improvement in energy management
Showcase Your Renewable Energy Kudos
You’ll find several green energy procurement opportunities on tender alerts platforms. There are the government platforms: Contracts Finder and Find a Tender. There are also many independent platforms, like Supply2Gov (S2G).
These independent platforms typically provide a range of procurement services that enable suppliers to showcase their social and sustainability value, making it easier for contracting authorities to quickly assess the validity of your claims before deciding to shuffle you along the procurement process.
In addition to renewable energy opportunities, Supply2Gov provides the tools you need to develop compelling proposals that emphasise your overall value (MAT). This includes product or service offerings, price, green credentials, and the impact of your social value initiatives on local communities.
The greener your business and the greater your impact (social, environmental, or economic) the likelier you are to win renewable energy tenders.
You can ensure that only the most relevant contracts come your way by using the right filters and tags to trigger your alerts. You can also ensure you come up in buyers’ searches by using the correct service listings and optimised search terms.
Start your journey into the renewable energy market by registering on Supply2Gov’s portal and take advantage of the array of services designed to distinguish you from your competition.