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HEAT NETWORK DEVELOPMENT PARTNER

Plymouth City Council

This public procurement record has 4 releases in its history.

Award

19 Aug 2026 at 15:40

UK7 - Contract Details Notice
Award

29 Apr 2026 at 15:12

UK6 - Contract Award Notice
Tender

15 Jul 2025 at 15:55

UK4 - Tender Notice
Planning

11 Mar 2025 at 15:46

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Plymouth City Council procured a development partner to develop and deliver low-carbon heat networks in Plymouth’s South Coast and Derriford areas. The work covers the initial design and commercialisation of the proposed networks through to an approval gateway, followed, if approved, by delivery and operation. It includes district-heating mains construction and energy-related services. The scheme is intended to support the Net Zero ambitions of public and private organisations including the University of Plymouth, Arts University Plymouth, Devon & Cornwall Police, Plymouth City Council, the National Marine Aquarium, Theatre Royal and Plymouth Community Homes. A significant waste-heat source from South West Water’s Central Plant forms part of the identified South Coast scheme. Plymouth City Council will hold a golden share in the project’s special purpose vehicle.

The procurement is complete and the contract was awarded to Vital Energi Utilities Limited and Heat Networks Development Company No.1 Limited on 23 April 2026. The contract was signed on 28 July 2026 and is active. Its stated period runs from 29 July 2026 to 28 July 2096, with a possible evergreen delivery-stage shareholders’ agreement. The awarded value is £3.5 billion excluding VAT, or £4.2 billion including VAT. This was an above-threshold concession using a selective competitive flexible procedure, with conditions of participation, an interim tender response, dialogue meetings, a final tender and preferred-supplier stage. Evaluation weighted technical quality at 50%, commercial factors at 40% and social value at 10%. One valid final-stage bid was received.

This requirement is suited to a major heat-network developer or infrastructure consortium able to combine engineering, commercialisation, construction, finance and long-term operations. Credible suppliers would need experience designing and delivering district-heating infrastructure, developing viable low-carbon energy schemes and integrating significant waste-heat sources. The buyer’s evaluation placed substantial emphasis on the proposed team, development and mobilisation methods, supply-chain and subcontracting arrangements, operating approach, tariff and pricing, equity returns and finance deliverability. Strong technical and commercial capability therefore matters alongside the ability to structure and fund a special purpose vehicle and work through an approval gateway. Suppliers should also be able to demonstrate financial capacity, insurance, technical ability, data protection, health and safety, business continuity, modern-slavery compliance and meaningful social-value outcomes for local communities.

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Notice Information

Notice Title

HEAT NETWORK DEVELOPMENT PARTNER

Notice Description

Plymouth City Council (PCC) was seeking a Development Partner (DP) to develop and deliver a heat network(s) in the Plymouth's South Coast and Derriford areas. Initially, the DP 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 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. Plymouth City Council have secured 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. The contract will consist of two stages: the Development Stage culminating in an approval gateway, and subject to that approval, the Delivery Stage. The Delivery Stage shall be subject to an evergreen (in perpetuity) Shareholders' Agreement. Therefore, the contract end dates and associated contract value below have been included for system purposes only based on the Council's best current estimate.

Planning Information

The preliminary market engagement related to this project will take the form of a Bidders Day which will be held on 10th April 2025 in Commonwealth Suite, Crowne Plaza, Armada Way PLYMOUTH PL1 2HJ https://maps.app.goo.gl/uE5csanftaMC1zUi6 Main session: Suppliers interest in bidding for this opportunity should complete an online registration form following the link: https://forms.office.com/e/ksM9Aqzdt2 . Places are limited. Due to venue capacity, we are forced to restrict the number of representatives to 3 per organisation. Booking of places will be on first come first serve basis. Networking session: There will also be an opportunity for local suppliers to attend a networking lunch (from 12.30pm) to find out how they might become involved in the project. Suppliers wishing to join the networking session should register using the following link: https://forms.office.com/e/fmJ66qHeDs. Places are limited. Any queries regarding the Bidders Day should be emailed to the team on: heatnetwork@plymouth.gov.uk

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04ebb1
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/079123-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
UK7 - Contract Details Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

71 - Architectural, construction, engineering and inspection services

CPV Codes

45232140 - District-heating mains construction work

71314000 - Energy and related services

Notice Value(s)

Tender Value
£3,500,000,000 £1B-£10B
Lots Value
£3,500,000,000 £1B-£10B
Awards Value
£3,500,000,000 £1B-£10B
Contracts Value
£3,500,000,000 £1B-£10B

Notice Dates

Publication Date
19 Aug 20261 weeks ago
Submission Deadline
8 Aug 2025Expired
Future Notice Date
12 May 2025Expired
Award Date
23 Apr 20264 months ago
Contract Period
29 Jul 2026 - 29 Jul 2096 Over 5 years
Recurrence
Not specified

Notice Status

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

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Plymouth City Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
PLYMOUTH
Postcode
PL1 3BJ
Postcode Area
Plymouth
Country
England
Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK4 Devon
Small Region (ITL 3)
TLK41 Plymouth
Delivery Location
TLK41 Plymouth
Local Authority
Plymouth
Electoral Ward
St Peter and the Waterfront
Westminster Constituency
Plymouth Sutton and Devonport

Supplier Information

Number of Suppliers
2
Supplier Names

HEAT NETWORKS DEVELOPMENT COMPANY NO.1 LIMITED

VITAL ENERGI UTILITIES LIMITED

Further Information

Open Contracting Data Standard (OCDS)

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