Energy

BAM Energy is part of BAM Construct UK and promotes energy efficiency and energy generation from renewable sources. This includes the design, installation, operation and - where necessary - the financing of renewable energy systems including PV, heat pumps and energy storage.

An integrated ‘Net Zero’ BAM solution

BAM Energy has considerable experience of working with BAM Construction and delivers coordinated and high-performance installations during or after, the construction programme. Together we work with our supply chain to design, install and operate energy systems that meet the agreed specification and requirements.

Cranfield University - BAM Energy helping the University achieve their energy reduction target

BAM Energy also maintains a collaborative relationship with other BAM companies in Northern Europe, allowing it to benefit from their experience of adopting new and emerging energy related technologies.

BAM is a member and participant of the UKGBC’s ‘Advancing Net Zero’. This was launched in 2018 to enable the UK construction and property sector to meet the emissions reductions required under the Paris Climate Agreement.

Rydens Enterpise School, Surrey - BAM Energy funded the installations of photovoltaics (PVs)

Energy Project Finance Proposals

BAM Energy offers energy supply contracts (ESCo) as an alternative to traditional capital cost plans. For an EPC the cost for the design, installation and operation of the renewable energy plant (such as photovoltaic panels and/or heat pumps) is omitted from the construction cost plan. Instead, the customer enters an alternative direct agreement (ESCo) with BAM Energy to purchase the power or heat generated by the energy systems, which includes all maintenance and operational costs.

Sunderland College, Holmdside Vocational Campus - BAM Energy supplies electricity to the college

Case studies

A first scheme for BAM Energy, the school features intelligent lighting and ventilation controls, heat recovery and optimised building orientation to maximise natural light, as well as photovoltaic arrays.

The environmental services design team from BAM had to ensure that high levels of energy efficiency are achieved for the Academy as it grows to full capacity, despite a pupil roll of only 400 for the first year of operation. The energy solution also has to work in a challenging urban environment, with poor air quality and acoustic constraints.

BAM Energy devised an innovative power purchase agreement. This meant the Academy did not need to invest up-front in its solar panels: spreading the expense of installing, maintaining and running its array across future operating costs and capitalising on the government’s feed-in tariffs.

Ruth Gorse Academy

BAM Energy supports the University’s energy management team to achieve their target of 5% year-on-year reduction in energy consumption.

The contract includes provision for electric vehicles for use by the site-based maintenance team. In addition, an energy manager will work with the client’s energy team to implement energy-reduction measures that will contribute towards the estate’s energy efficiency targets.

BAM’s aim is to operate buildings as efficiently as possible from both a financial and environmental perspective - helping the University’s energy team to reduce consumption.

Cranfield University

BAM energy funded the installation of photovoltaics (PVs) at the scheme. This saved the Trust a significant sum and avoided the need to make some difficult decisions in order to complete the project.

Our approach helps customers to meet their energy targets and save upfront capital costs. Instead, the cost of installing and operating the PVs is recovered through a Power Purchase Agreement (PPA), which is separate to the construction contract. It states that the school agrees to buy its electricity through BAM Energy for the next 20 years, at a fixed unit cost, which is comparable to the cost of purchasing power from the grid. At the end of the agreement they retain the PVs. The PPA was scrutinised by the EFA, who had to ratify and approve the agreement before terms could be settled; proving that the scheme was value for money.

This is a long term investment for BAM and allows us to present customers with economic and sustainable energy solutions for the short, medium and long term.

Rydens Enterprise School

To achieve Part L compliance and improved energy performance, it was proposed that a roof-mounted 40 kWp photovoltaic (PV) system would be installed during the construction works. However, when the new Campus’ budget came under stress during the construction stages, BAM Energy was able to offer a saving by omitting the cost of the new PVs and transferring this to the College’s operating budget.

Power Purchase Agreement (PPA)

The cost of installing and operating the PVs is recovered through a Power Purchase Agreement (PPA) – a separate contract to the construction contract by which the College agrees to buy its electricity through BAM Energy for the next 20 years.

The PPA was scrutinised by the College’s senior management and advisor Turner Townsend to ratify and approve the agreement. This process ensured the scheme was value for money.

Price of Energy

Once renewable energy incentives (Feed-in Tariffs) had been taken into consideration, the price of electricity per kWh from BAM Energy proved comparable with the future electricity price that the College would have paid if purchased from the grid. The College also gets the added benefit of retaining the PVs at the end of the contract period.

Sunderland College