Tender

HEAT NETWORK DEVELOPMENT PARTNER

  • Plymouth City Council

UK4: Tender notice - Procurement Act 2023 - view information about notice types

Notice identifier: 2025/S 000-040135

Procurement identifier (OCID): ocds-h6vhtk-04ebb1 (view related notices)

Published 15 July 2025, 3:55pm



Scope

Reference

26155

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.

Total value (estimated)

  • £3,500,000,000 excluding VAT
  • £4,200,000,000 including VAT

Above the relevant threshold

Contract dates (estimated)

  • 18 June 2026 to 17 June 2096
  • 70 years

Main procurement category

Works

Additional procurement category

Services

CPV classifications

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

Contract locations

  • UKK41 - Plymouth

Submission

Enquiry deadline

8 August 2025, 5:00pm

Submission type

Requests to participate

Deadline for requests to participate

15 August 2025, 12:00pm

Submission address and any special instructions

Tenders may be submitted electronically

Yes

Languages that may be used for submission

English

Award decision date (estimated)

25 May 2026


Award criteria

This table contains award criteria for this lot
Name Description Type Weighting
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...

Quality 50%
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...

Cost 40%
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...

Quality 10%

Other information

Applicable trade agreements

  • Government Procurement Agreement (GPA)

Conflicts assessment prepared/revised

Yes


Procedure

Procedure type

Competitive flexible procedure

Special regime

Concession

Competitive flexible procedure description

Stage 1: Conditions of Participation;

Stage 2: Interim Tender Response Phase (Legal and Technical Submission only) - this stage will not be evaluated, but used to inform the dialogue meetings

Stage 3: Dialogue Meetings - Two dialogue meetings: 1 - Legal and Commercial elements; and 2 - Technical elements

Stage 4: Final Tender Response;

Stage 5: Preferred Supplier Stage

Full details contained in Tender Documentation


Contracting authority

Plymouth City Council

  • Public Procurement Organisation Number: PBQP-8499-TLMP

Ballard House, West Hoe Road

Plymouth

PL1 3BJ

United Kingdom

Region: UKK41 - Plymouth

Organisation type: Public authority - sub-central government


Other organisations

These organisations are carrying out the procurement, or part of it, on behalf of the contracting authorities.

BURO HAPPOLD LIMITED

Summary of their role in this procurement: Project management and technical support, drafting technical reference scheme and requirements, technical tender evaluation

  • Companies House: 02049511
  • Public Procurement Organisation Number: PMYR-5199-WHTD

Camden Mill, 230 Lower Bristol Road

Bath

BA2 3DQ

United Kingdom

Region: UKK12 - Bath and North East Somerset, North Somerset and South Gloucestershire

AMBERSIDE ADVISORS LTD

Summary of their role in this procurement: commercial advice, commercial tender documentation, FVRAT and commercial tender evaluation

  • Companies House: 06078852
  • Public Procurement Organisation Number: PHCN-1919-CCQG

Clubfinance House

Hemel Hempstead

HP2 5HA

United Kingdom

Region: UKH23 - Hertfordshire

BURGES SALMON LLP

Summary of their role in this procurement: legal support

  • Companies House: OC307212
  • Public Procurement Organisation Number: PCJC-9414-RZPH

One Glass Wharf

Bristol

BS2 0ZX

United Kingdom

Region: UKK11 - Bristol, City of


Contact organisation

Contact Plymouth City Council for any enquiries.