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Climate Innovation Pull Facility - Facility Manager - Invitation to Submit Initial Tenders

DESNZ

Buyer Contact Info

Buyer Name: DESNZ

Buyer Address: Department for Energy Security and Net Zero, 3-8 Whitehall Place, London, SW1A 2AW, England

Contact Name: Charlotte Finlay

Contact Email: internationalclimateandenergy.procurement@energysecurity.gov.uk

Status
active
Procedure
selective
Value
500000000.0 GBP
Published
07 Oct 2025, 13:39
Deadline
20 Nov 2025, 13:00
Contract Start
31 May 2026, 23:00
Contract End
30 Jun 2031, 22:59
Category
services
CPV
75211200 - Foreign economic-aid-related services
Region
n/a
Awarded To
n/a
Official Source
Open Contracts Finder

Description

The UK Department of Energy Security and Net Zero is procuring a supplier to manage 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. 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 CIPF will support the development of innovation projects aligned to Ayrton Fund themes: industrial decarbonisation, sustainable cooling, smart energy systems and storage and clean transport Further details of Ayrton Fund thematic challenges are set out on gov.uk. The procurement of this requirement will be in two parts: (i) A contract for a Facility Manager to manage the programme and identify, incubate, commission and oversee 6-10 climate pull projects of £10m - £50m each. This contract will also cover programme monitoring and learning. ii) A separate contract for an Independent Evaluator of the programme, who will conduct a mid-term and end-of-term evaluation of the programme's achievement of its development objectives, theory of change and value for money. This procurement is subject to a separate procurement procedure. The procurement for the Facility Manager is the focus of this notice and will be run as a competitive procedure with negotiation. The initial contract value is £183m over 5.5 years with options to extend by up to £317m and up to 3 additional years. Of the £183m initial contract value, at least £150m of this will be allocated for climate pull projects, the majority of which will be grant funding. Additional information: To access the tender documents and early market engagement information please go to the links provided below which will take you to the DESNZ Procurement Portal.

Linked Documents

No linked documents found for this notice.

Opportunity Context

More Information Links

External Link: https://www.contractsfinder.service.gov.uk/Notice/c4010c01-8509-4e8a-aeaa-7b76f3a67df7

Link Description: Opportunity notice on Contracts Finder

External Link: https://beisgroup.ukp.app.jaggaer.com/go/188260980194FB24BEB2

Link Description: Tender access links

External Link: https://beisgroup.ukp.app.jaggaer.com/esop/guest/go/opportunity/detail?opportunityId=55356

Link Description: Link to the ITT

External Link: http://n/a

Link Description: Link to the Opportunity Listing and early market engagement information.

Documents

Document Description: Opportunity notice on Contracts Finder

Document Description: Tender access links

Document Description: Link to the ITT

Document Description: Link to the Opportunity Listing and early market engagement information.

Raw Notice JSON

Expand raw payload
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    "description": "The UK Department of Energy Security and Net Zero is procuring a supplier to manage 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.\r\n\r\nIn 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\u0026D costs.\r\n\r\nIn terms of climate mitigation solutions, the CIPF will support the development of innovation projects aligned to Ayrton Fund themes: industrial decarbonisation, sustainable cooling, smart energy systems and storage and clean transport Further details of Ayrton Fund thematic challenges are set out on gov.uk.\r\n\r\nThe procurement of this requirement will be in two parts:\r\n(i) A contract for a Facility Manager to manage the programme and identify, incubate, commission and oversee 6-10 climate pull projects of \u00a310m - \u00a350m each. This contract will also cover programme monitoring and learning.\r\n\r\nii) A separate contract for an Independent Evaluator of the programme, who will conduct a mid-term and end-of-term evaluation of the programme\u0026apos;s achievement of its development objectives, theory of change and value for money. This procurement is subject to a separate procurement procedure.\r\n\r\nThe procurement for the Facility Manager is the focus of this notice and will be run as a competitive procedure with negotiation. The initial contract value is \u00a3183m over 5.5 years with options to extend by up to \u00a3317m and up to 3 additional years. Of the \u00a3183m initial contract value, at least \u00a3150m of this will be allocated for climate pull projects, the majority of which will be grant funding.\r\n\r\nAdditional information: \r\nTo access the tender documents and early market engagement information please go to the links provided below which will take you to the DESNZ Procurement Portal.",
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