The Authority may wish to consider purchasing some or all of the energy outputs of the process. If this is a possibility this option should be made clear to bidders at any early stage in the process so that they can reflect the impact in their technical and commercial proposals at the Invitation to Submit Detailed Solutions (ISDS) stage.
The revenue available from electricity and heat related sales can be a significant percentage of the Contractor's income. Such income is highly dependent on a number of key variables including the price of Renewable Obligation Certificates (ROCs) and Levy Exemption Certificate (LECs) and a clear risk allocation is required in respect of changes to such variables. The relevant power markets and the regulations applying to both ROCs and LECs are complex and dynamic. Therefore, Authorities should consider the need for specialist advice when developing their approach to risk sharing in these areas.