HEAT NETWORK DEVELOPMENT PARTNER

A Tender Notice
by PLYMOUTH CITY COUNCIL

Source
Find a Tender
Type
Contract (Works)
Duration
70 year
Value
£4B
Sector
CONSTRUCTION
Published
15 Jul 2025
Delivery
18 Jun 2026 to 17 Jun 2096
Deadline
n/a

Concepts

Location

Plymouth:

Geochart for 1 buyers and 0 suppliers

1 buyer

Description

Plymouth City Council (PCC) is seeking a Development Partner (DP) to develop and deliver a heat network(s) in the Plymouth's South Coast and Derriford areas. Initially, the Development Partner will be responsible for design and commercialisation of the proposed heat network, up to an approval gateway. The DP will be required to meet minimum mandatory requirements for the proposed heat network, set out in the Development Agreement. If approval is granted the delivery stage will commence. The DP will use a special purpose vehicle in which Plymouth City Council will hold a "golden share" PCC has undertaken commercialisation work in relation to an initial phase of a heat network in Plymouth's South Coast area, which identified a viable commercial scheme using a significant waste heat source (South West Water Central Plant). A number of public and private sector entities, such as the University of Plymouth, Arts University Plymouth, Devon & Cornwall Police, Plymouth City Council, National Marine Aquarium, Theatre Royal and Plymouth Community Homes are interested in being connected to the heat network to meet their Net Zero ambitions, other parties may be join the scheme in future. The Plymouth South Coast and Derriford areas have been identified through the Department of Energy Security and Net Zero's heat network zoning pilot, as being suitable for low-carbon heat networks. Exclusive rights to develop heat networks in these areas will be subject to the outcome of future Zoning Regulations. PCC would like to draw the attention of interested suppliers to the fact that all activities delivered after the development stage shall be subject to an evergreen Shareholders' Agreement. Therefore, the contract period dates and associated contract values below have been included for system purposes only based on the Council's best current estimate. Plymouth City Council have applied for government Green Heat Network Fund grant towards the new heat network costs, including commercialisation and construction costs. The remaining development and delivery funding will be provided by the appointed Development Partner.

Award Criteria

Technical Proposed Team - 23 Development Methodology - Development Stage - 23 Delivery Methodology - Mobilisation Stage - 18 Subcontracting & Supply Chain - 16 Operations Methodology - 20 Total - 100 The sum of awarded points for Technical Award Criterion will then be converted into 50% available for this criterion. Detailed listing of all criterial and weightings is included in Tender Documentation.
Commercial Qualitative Commercial Sub-Criterion - 70 out of 100 Tariff & Pricing - 42 Hurdle Equity IRR (Qualitative) - 29 Deliverability of Finance - 29 Sub Total for this Sub-Criterion - 100 The sum of awarded points for Qualitative Commercial Sub-Criterion will then be converted into 70% available for this sub-criterion. Quantitative Commercial Sub-Criterion - 30 out of 100 Hurdle Equity IRR (Quantitative) - 100 Sub Total for this Sub-Criterion - 100 The sum of awarded points for Quantitative Commercial Sub-Criterion will then be converted into 30% available for this sub-criterion. Total for Commercial Criterion - 100 The sum of weightings achieved for Quantitative and Qualitative Commercial Sub-Criteria will then be converted into 40% available for this Criterion. Detailed listing of all criterial and weightings is included in Tender Documentation.
Social Value SV - TOMs National Procurement Calculator Sub-Criterion - 60 out of 100 Qualitative elements - 50 Quantitative elements - 50 Sub-Total for TOMs National Procurement Calculator Sub-Criterion - 100 The sum of awarded points for this sub-criterion will then be converted into 60% available for this sub-criterion. Building Resilient Communities Sub-Criterion - 40 out of 100 The sum of awarded points for this sub-criterion will then be converted into 40% available for this sub-criterion. Overall Social Value Total - 100 The sum of awarded points for TOMs National Procurement Calculator and Building Resilient Communities sub-criteria will then be converted into 10% available for Social Value criterion. Detailed listing of all criterial and weightings is included in Tender Documentation.

CPV Codes

  • 45232140 - District-heating mains construction work
  • 71314000 - Energy and related services

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. **

Reference

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