Best Practice Procurement

Energy efficient procurement is good procurement. Not only does it reduce energy consumption and deliver environmental benefits, it also saves money.

The scope of energy efficiency in public procurement ranges from the purchase of energy supplies, equipment and services to formal tendering and placing of contracts for large infrastructure projects.

Public bodies can save money through better procurement by:

• Procuring energy supplies through the National Procurement Service (NPS).
• Only procuring equipment and vehicles that are classified as Triple E by SEAI.
• Procuring energy services using the principles of energy performance contracting.
• Incorporating the principles of energy efficient design at the design stage of capital projects.

Energy efficient procurement practices and energy performance contracting are part of the Programme for Government and central to EU and national policy.

This legislation includes:

• S.I. No. 542/2009 (Energy End-Use Efficiency and Energy Services Regulations 2009)
• S.I. 151 of 2011 (Energy Efficient Public Procurement)

S.I. 151 of 2011 obliges public bodies when purchasing or leasing particular equipment and vehicles to only procure those that:

• Are explicitly listed on the Triple E Register, or;
• Meet the energy efficiency criteria published by SEAI for the relevant product categories.

Energy efficiency should be a key requirement for defining the need, evaluating options, designing, specifying, supplier selection, and tender evaluation.

The draft Green Public Procurement guidelines require 'green' criteria to be at the centre of all State procurement, and in particular for the following procurement categories:

1. Energy supply

Public sector bodies should procure energy supplies through the National Procurement Service (NPS) or use NPS templates/guidelines.

The NPS provides a central procurement service for Government Departments, Local Authorities and agencies. It regularly tenders for electricity, natural gas, petroleum products and biofuels. All transactions under these contracts are managed directly between the energy users (public bodies) and the suppliers.

2. Energy equipment and vehicles

Purchasing energy efficient equipment and vehicles results in lower lifetime energy costs. This usually provides greater total lifetime savings, even if there is an additional capital cost associated with such equipment/vehicles.

To make purchasing easier, SEAI has developed the Triple E Product Register which is a list of ‘best in class’ energy efficient products and all Public Sector bodies must procure certain types of equipment from the Triple E list.

Download the information sheet to find out more about Triple E and use the sample text in your procurement documentation

Triple E products:

• Are 10-15% more energy efficient when compared with standard alternatives.
• Have reduced energy running costs.
• Produce less CO₂ emissions.

All public sector tenders must include reference to Triple E compliance and suppliers must be able to demonstrate that their product is either on the register or complies with the relevant criteria.

3. Energy services

Both National and EU policy supports the development of an energy services market to help achieve energy savings and reduce costs. Preliminary work through the 2010 Energy Efficiency Retrofit Fund grant scheme is seeking to develop and showcase innovative delivery models for energy services, including those based on energy performance contracting.

Public sector bodies should consider energy performance contracting whether in the form of consultancy, bureau or full ESCO

For further information see:

• Working Group and publications on financing retrofit
• Conference on Financing Retrofit in the Public Sector
• Schools ESCO strategy in collaboration with Department of Education and Skills

4. Capital projects

SEAI has successfully implemented and supported Energy Efficient Design (EED) in the private sector and is now transferring the techniques to large public sector projects. EED is a methodology that facilitates the design, construction and management of capital projects so that they consume the minimum quantity of energy during subsequent operation. EED is always driven by a sound ‘business case”.

Public sector bodies should employ energy efficient design principles and ensure that energy efficiency is taken into account at each stage of the development of capital projects.

For further information see:

• Energy Efficient Design in the public sector
• Energy Efficient Design in the private sector