Planning

Soft Market Testing for Heat Network Zone Developer

CITY OF LONDON CORPORATION

This public procurement record has 1 release in its history.

Planning

02 Aug 2024 at 10:48

Summary of the contracting process

The City of London Corporation is currently in the planning stage for a soft market testing initiative aimed at assessing market interest in developing a zonal scale heat network within the Square Mile, alongside potential partnerships to deliver wider energy system decarbonisation measures. The initiative falls under services related to the oil and gas industry and covers the entire Square Mile in London, UK. The proposed soft market testing is essential prior to possibly launching a formal open tender process. A key date to note is 1 January 2025, when a future notice may be issued. The decision to move forward with a competitive tendering process will depend on forthcoming regulations and legal frameworks concerning heat network zoning.

This tender can create significant opportunities for businesses specialising in low-carbon energy systems and infrastructure development. Companies capable of forming strategic partnerships to innovate and deliver decarbonisation measures would find this opportunity particularly advantageous. With an estimated investment of over £1.2 billion required to decarbonise more than 1,000 GWh/year of heat across 1,200 buildings, there is substantial potential for market participants to engage in high-value projects. The City of London Corporation's involvement in the Department for Energy Security and Net Zero's Advanced Zoning Programme underlines the scale and ambition of this initiative, making it a lucrative opportunity for businesses in the energy sector.

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Notice Title

Soft Market Testing for Heat Network Zone Developer

Notice Description

Soft Market testing Prior to considering whether to commence a formal open tender process, the City Corporation wishes to establish the level of market interest in a zonal scale heat network development within the Square Mile and potential partnerships to deliver wider energy system decarbonisation measures to address the priority areas identified in the CoL LAEP. This activity does not, however, commit the CoLC to running a competitive tender process in the future. The decision to run this process will be made when further information is available on the heat network zoning regulations and the forthcoming legal regime. Assuming the entire Square Mile becomes a heat network zone, the City Corporation wish to explore through this Soft Market testing the market interest in participating in a future competitive process which may allow for future zoning rights to be awarded for developing heat networks within this future zone.

Lot Information

Lot 1

The LAEP outlines the need for holistic thinking when considering the future energy needs of the square mile. As such, the City Corporation must consider potential partnerships and delivery models with organisations able to deliver low-carbon energy systems in the Square Mile The City Corporation have been participating in the Department for Energy Security and Net Zero's (DESNZ) Advanced Zoning Programme (AZP), recently completing stage 1. The outputs of the initial stage of the AZP have indicated that whole of the Square Mile is likely to be designated as a Heat Network Zone when regulations are implemented. It is estimated that this would require a total investment of over PS1.2bn to decarbonise more than 1,000 GWh/year of heat delivered to over 1,200 buildings. It is envisaged that the first phase of this will require a circa PS120m investment. It should be noted that, as the heat network zoning framework, including zoning regulations and designations, is still uncertain at this stage, the CoLC cannot guarantee that the Square Mile will be a Heat Network Zone, and ultimately future decisions by the Zoning Coordinator may differ from current thinking. There is currently an operational heat network in the Square Mile - The Citigen Heat and Chill Network. This network is owned and operated by E.ON, and connects to a number of CoLC and private buildings in an area in the North West of the Square Mile. The CoLC have a cooperation agreement to support this network by leasing space for energy centres and acting as an anchor load. Soft Market testing Prior to considering whether to commence a formal open tender process, the City Corporation wishes to establish the level of market interest in a zonal scale heat network development within the Square Mile and potential partnerships to deliver wider energy system decarbonisation measures to address the priority areas identified in the CoL LAEP. This activity does not, however, commit the CoLC to running a competitive tender process in the future. The decision to run this process will be made when further information is available on the heat network zoning regulations and the forthcoming legal regime. Assuming the entire Square Mile becomes a heat network zone, the City Corporation wish to explore through this Soft Market testing the market interest in participating in a future competitive process which may allow for future zoning rights to be awarded for developing heat networks within this future zone.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-048717
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/024273-2024
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
Planning Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

24 - Chemical products

65 - Public utilities

76 - Services related to the oil and gas industry


CPV Codes

24000000 - Chemical products

65000000 - Public utilities

76000000 - Services related to the oil and gas industry

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
2 Aug 20241 years ago
Submission Deadline
Not specified
Future Notice Date
1 Jan 2025Expired
Award Date
Not specified
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Planned
Lots Status
Planned
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
CITY OF LONDON CORPORATION
Contact Name
Onika Syeda
Contact Email
onika.syeda@cityoflondon.gov.uk
Contact Phone
+44 2076063030

Buyer Location

Locality
LONDON
Postcode
EC2P 2EJ
Post Town
Central London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI4 Inner London - East
Small Region (ITL 3)
TLI43 Haringey and Islington
Delivery Location
Not specified

Local Authority
Islington
Electoral Ward
Clerkenwell
Westminster Constituency
Islington South and Finsbury

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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