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Local Authorities in the UK are increasingly looking for new, innovative models for delivering their ambitious Net Zero action plans, particularly given the end of the Private Finance Initiative (PFI) model and the increasing financial challenges facing many councils and public bodies.
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An emerging new model is the Strategic Delivery Partner (SDP) model, spearheaded by early movers such as Bristol City Council, with the Bristol City Leap example.
SDP models, like that adopted in Bristol, are increasingly being replicated and adapted to different projects, technologies and local contexts.
The SDP model is not a single commercial structure. It is a concept for a future-proof public private partnership that enables various commercial routes for specific assets and iniitatives.
At its core, the SDP model emphasises:
1. Joint decision-making by the Authority and the Delivery Partner;
2. Leveraging private sector capital, technical expertise and resource; and
3. Flexibility to deliver a diverse portfolio of projects across technologies.
This paper by Grant Thornton’s Energy Transition team outlines the emerging Strategic Delivery Partner model for public-private partnerships in the UK. The paper provides an overview of the pros and cons of the SDP model, with guidance regarding tips for implementation.
Implementing local Net Zero investment
Grant Thornton has firsthand experience of Strategic Delivery Partner procurements, for example our recent support to Milton Keynes City Council on procurement of the Milton Keynes Waste Recovery Park energy-from-waste facility. We understand the challenges in applying the model from a financial/commercial perspective as well as its benefits.
For more insight and guidance, get in touch with Owen Tong.
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