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Contractors to drive energy efficiency across defence estate

The Defence Infrastructure Organisation will demand that contractors drive energy efficiency throughout its estate from 2013.

Under the Next Generation Estate Contracts programme, estimated to be worth up to £600 million per year, DIO will ask its four new regional prime contractors to open an energy management bureau to monitor the Minsitry of Defence’s energy consumption.

Contractors will be asked to develop business cases for work that could reduce energy consumption and cut costs, such as overhauling existing energy distribution networks or installing new heating and ventilation systems and insulation.

DIO deputy chief executive David Olney said: “Our future estate contracts provide the perfect opportunity to put energy efficiency at the heart of our estate management and decision-making.

“The MoD has done well against its energy targets, exceeding its original targets by 50 per cent, but the Prime Minister has set out a strong pledge that this will be the greenest government ever, so this is not the time to rest on our laurels.”

Incoming prime contractors will be asked to survey all sites and buildings to identify any shortcomings in the current metering arrangements and will conduct annual surveys to identify impacts on energy usage.

They will also be required to provide reports on progress and identify where future maintenance work is required.

MoD central programme office for energy head Matt Foley said: “The defence estate is highly complex and rationalising its energy consumption and carbon emissions will require innovative, insightful and robust energy management plans.

“Our future facilities management providers will have a key role to play in helping the MoD reduce consumption and its current daily energy bill of around £1m.”

DIO is working with its current facilities management providers to retrofit energy management services into existing contracts.

The body is also considering mechanisms to enable future prime contractors to inject their own or other private capital into energy options and efficiency schemes, on behalf of the MoD. 

The NGEC programme is developing a new suite of contracts for the UK Defence estate, comprising four regional prime contracts for maintenance and facilities management, one national and six regional capital works frameworks for construction projects, a national housing prime contract, and a contract for the defence training estate.

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