Award

Ask AI about this notice

Summarise, research or assess it with AI

View Markdown

Share this notice

Send this contract to a colleague

Sunderland Central Heat Network

Sunderland City Council

This public procurement record has 5 releases in its history.

Award

12 Jan 2026 at 11:45

Award Notice
Tender

16 Apr 2024 at 13:01

Tender Notice
TenderUpdate

26 Mar 2024 at 14:33

Tender Notice
TenderUpdate

21 Mar 2024 at 10:53

Tender Notice
Planning

20 Mar 2024 at 13:16

Planning Notice
Summary of the contracting process

Sunderland City Council is the buying organisation for the Sunderland Central Heat Network project, which involves the delivery of a large-scale heat network in Sunderland City Centre. With an estimated value of £130 million, the project falls within the Public Utilities industry category under CPV 65000000 and is classified under services. The procurement method used was selective, employing a competitive dialogue process. Initially planned, the procurement process has now progressed through various stages, with the award phase being completed as of December 2025 and a contract signed with 1Energy Group Limited. The scheme aims to provide low carbon heat to municipal, commercial, and residential customers, including South Tyneside and Sunderland NHS Foundation Trust, University of Sunderland, and Gentoo Group Limited. The duration of the project is set for 40 years, reflecting the council's long-term investment expectations.

This procurement offers significant growth opportunities for businesses in the district heating and construction sectors, as well as those specialising in energy solutions. Companies with strengths in technical engineering, civil, mechanical, and electrical contracting, as well as those capable of supplying innovative energy solutions through heat networks, may find this project particularly suitable. The project supports the local economy through potential subcontracting opportunities during various project phases, including commercialisation and construction. Businesses adept at managing complex, large-scale infrastructure projects and capable of fulfilling Sunderland City Council's sustainability and carbon reduction targets will find this an attractive opportunity.

How relevant is this notice?

Notice Information

Notice Title

Sunderland Central Heat Network

Notice Description

Sunderland City Council (the "Council") is seeking interest and proposals from suitable economic operators to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers through an innovative contractual structure. Following completion of the procurement process, the Council will enter into a joint development agreement ("JDA") with the selected bidder ("ESCO") under which the Council and the ESCO will work in partnership throughout the commercialisation phase of the project. On completion of the commercialisation phase and a final investment decision having been approved by both parties, the project will move to the delivery stage and the Council proposes to enter into the "Delivery Contracts" for the project including:- - the project governance agreement ("PGA"), which shall govern the rights and relationship between the Council and the ESCO in delivering the project; - the connection and supply agreements for the anchor load properties (see below); and - any other relevant legal documents agreed during the commercialisation phase. This procurement includes the opportunity to provide heat to the initial anchor load customers which includes South Tyneside and Sunderland NHS Foundation Trust, University of Sunderland, Gentoo, the Council, and other un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland.

Lot Information

Lot 1

Sunderland City Council (the "Council") is seeking interest and proposals from suitable economic operators to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers (the "Project") through an innovative contractual structure. Following completion of the procurement process, the Council will enter into a joint development agreement ("JDA") with the selected bidder ("ESCO") under which the ESCO will be provided with a 12 month exclusivity period to work with the Council in partnership to carry out the commercialisation of the project. The JDA will govern the terms upon which the Council and the ESCO will work together to (amongst other things): (a) finalise the connection and supply agreements for the anchor load customers and any other legal documents required for the delivery stage; (b) develop the reference design for the first phase of the network into a construction-ready design; (c) secure the necessary consents and land rights required to deliver the Project; (d) develop the financial model for the Project; (e) arrange the finance for the core scheme; (f) procure the supply chain; and (g) incorporate a special purpose vehicle ("SPV") to act as the Project delivery vehicle. On completion of the commercialisation phase and a final investment decision having been approved by both parties, the project will move to the delivery stage and the Council proposes to enter into the "Delivery Contracts" for the project including:- - the project governance agreement ("PGA"), which shall govern the rights and relationship between the Council and the ESCO in delivering the Project (see below); - the connection and supply agreements for the anchor load properties (see below); and - any other relevant legal documents agreed during the commercialisation phase. This procurement includes the opportunity to provide heat to the initial anchor load customers which includes:- - South Tyneside and Sunderland NHS Foundation Trust in relation to Sunderland Royal Hospital and, potentially, a number of other buildings owned and occupied by the Trust; - University of Sunderland in relation to a number of buildings on the University's City Campus; - Gentoo Group Limited in relation to a number of social housing blocks in the City; - the Council in relation to Sunderland City Hall; and - other un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland, with the intention for further expansion of the network in the future. The forms of connection and supply agreements with each anchor load customer will be agreed between the ESCO and anchor load customers during the commercialisation phase based on the principles document provided as part of this procurement. The Council and the ESCO will also agree the terms of the ("PGA") during the commercialisation phase based on the principles document provided as part of this procurement. The PGA is intended to be a perpetual arrangement with the ESCO taking ownership and full risk in relation to the network. The PGA will include obligations on the ESCO in relation to the delivery of the works, customer service standards, transparent pricing which does not exceed a counterfactual, carbon reduction/growth targets and reporting requirements. Potential bidders should note that the Council (and the other named public-sector anchor load customers set out above) intend to enter into the relevant Delivery Contracts with the ESCO following completion of the commercialisation phase under the JDA without a separate procurement being undertaken. However, if a final investment decision is not achieved in accordance with the JDA the Council reserves the right to conduct a new procurement process for another ESCO for the Project and enter into the Delivery Contracts with the successful bidder in that procurement process. Further detail on the background and structure of the Project is set out in the procurement documents.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-044acd
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/002211-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
Planning Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive dialogue
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy

45 - Construction work

65 - Public utilities

CPV Codes

09323000 - District heating

45000000 - Construction work

65000000 - Public utilities

Notice Value(s)

Tender Value
£130,000,000 £100M-£1B
Lots Value
£130,000,000 £100M-£1B
Awards Value
Not specified
Contracts Value
£130,000,000 £100M-£1B

Notice Dates

Publication Date
12 Jan 20267 months ago
Submission Deadline
21 May 2024Expired
Future Notice Date
10 Apr 2024Expired
Award Date
4 Dec 20258 months ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Sunderland City Council
Additional Buyers

The Council of the City of Sunderland

Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
SUNDERLAND
Postcode
SR1 3AA
Postcode Area
Sunderland
Country
England
Major Region (ITL 1)
TLC North East (England)
Basic Region (ITL 2)
TLC4 Northumberland, Durham and Tyne & Wear
Small Region (ITL 3)
TLC44 Sunderland
Delivery Location
TLC23 Sunderland
Local Authority
Sunderland
Electoral Ward
Millfield
Westminster Constituency
Sunderland Central

Supplier Information

Number of Suppliers
1
Supplier Name

1Energy Group Limited

Further Information

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

JSON Markdown

The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

Loading OCDS record...