Energy Innovation Procurement Guide

Energy Network Procurement Processes

Procurement and contracting processes often vary from network to network and can be complex in nature. For innovators and/or suppliers engaging with the energy networks, having access to trusted information and advice about what to expect when it comes to procurement, can make navigating the journey that little bit easier. Being clear from the outset about the different procurement stages and what’s required at each one, helps to manage expectations on all sides and keep the focus on the ultimate goal of driving ideas through to Business as Usual (BAU) deployment.

In response to innovator feedback and in collaboration with our energy network partners, the EIC has developed an Innovation Procurement Guide to provide a stage-by-stage overview of existing network procurement processes, along with a detailed explanation of what third parties need to know about each stage.

INNOVATION PROCUREMENT GUIDE

An overview of current procurement processes

STAGE 1

NEED RECOGNITION

For innovators or potential suppliers that have an idea or a solution that is new or novel and which meets the needs of the energy industry. An idea may require investment for research and development, or it may be a deployment-ready solution primed for implementation as part of the energy networks’ BAU operations.

STAGE 2

PROCUREMENT PROCESS

For innovators that have developed ideas with a network as part of a funded innovation project which has produced a solution or service that’s now available for purchase by the network or an innovator has submitted a solution that is ready for purchase and deployment.

STAGE 3

APPROVAL AND CONTRACT EXECUTION

Once the energy network has notifi ed successful and unsuccessful innovators of the outcome of the procurement process, successful innovators will then be invited to enter discussions with the energy network to determine the contract terms on which their solution will be procured.

STAGE 4

DEPLOYMENT AND PAYMENT

For Innovators that have signed a contract with a network and are ready for their goods or services to be deployed as part of the network’s Business as Usual (BAU)

PROCUREMENT FAQ'S

If my product was developed using NIA funding, do I need to follow a procurement process for normal (BAU) deployment?

Innovators that have developed a final product or service that’s ready to be offered as a solution must first go through a procurement process with a network before it can be purchased. The process can be seen in the Innovation Procurement Guide.

What procurement process is required before starting my network innovation project?

It depends on the specific circumstances, but the innovation project may be exempt from certain procurement rules.

My solution is ready, what procurement process do I need to go through?

It depends on the value, according to the Utility Contract Regulations (UCR).

For goods or services over a particular value, the network will be required to hold a competitive tender process and then advertise it for submissions on the Government’s Find a Tender service
For goods or services undr the UCR’s value thresholds, the network may run its own competitive tender; value thresholds can be seen here.

How long with the process take?

Time estimates depend on the procurement route.

Single Source: Two to four weeks
Three Bid Process: Five to eight weeks
Regulated Tender: Seven to 26 weeks.

These timescales are under optimal conditions, such as fast evaluations of submissions and limited negotiations. Each stage may take significantly longer if there are negotiations, or if trials are needed.

Regulated tender timescales could be much longer if there is a complex requirement and a contract notice on Find a Tender is required.

Is the procurement process the same across networks?

Each energy network has slightly different processes in place, but the pathway with the majority of Energy Innovation Centre partner networks will include the following four stages:

Need recognition
Procurement process
Approval and contract execution
Deployment and Payment.

Find out more about each of these stages by reading our Innovation Procurement Guide.