Planning

Sheffield Heat Network Development Partner

SHEFFIELD CITY COUNCIL

This public procurement record has 2 releases in its history.

PlanningUpdate

22 Oct 2025 at 13:02

UK2 - Preliminary Market Engagement Notice
Planning

09 Oct 2025 at 15:30

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Sheffield City Council is progressing with plans to develop a zonal scale heat network in Sheffield, under the Department for Energy Security & Net Zero’s Advanced Zoning Programme. The council seeks a Development Partner to work on this significant opportunity, with an estimated heat demand of up to 900GWh annually. The procurement process is currently at the planning stage, and interested parties are invited to a Market Engagement Day on 5th November 2025 at Sheffield United Football Club. This engagement aims to provide more information on the scope and procurement approach, with formal procurement anticipated to follow under the open procedure detailed in the Procurement Act 2023.

This tender represents a substantial opportunity for businesses specialising in district heating, heat pumps, and energy services, including construction and development work related to urban infrastructure. Companies capable of proposing innovative solutions for heat networks, particularly those experienced with large-scale industrial and urban development projects, would find this venture particularly promising. The Development Partner will be instrumental in presenting proposals for the significant heat network, subject to approval, thus offering growth potential for firms eager to expand their portfolio in public sector projects.

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Notice Information

Notice Title

Sheffield Heat Network Development Partner

Notice Description

This notice relates to the proposed market engagement activity for the heat network development opportunity for which Sheffield City Council intends to shortly procure a Development Partner. Sheffield City Council has been selected as part of the Department of Energy Security & Net Zero's Advanced Zoning Programme to develop the country's first zonal scale heat networks. To deliver this, Sheffield City Council is seeking a Development Partner to develop (and present for their approval) a zonal scale heat network in the Sheffield area. Sheffield City Council has undertaken work to identify a reference scheme in an area of Sheffield city which has an estimated annual heat demand of c. 60 GWh. The area which will be the subject of the procurement (and which the Development Partner will be invited to deliver development proposals in respect of) is wider and has an estimated annual heat demand of up to. 900GWh. Sheffield City Council intends to conduct a procurement using the open procedure in accordance with the Procurement Act 2023 to select the development partner for this opportunity. If successful, the parties would enter an agreement for development services only (known as the Development Agreement Only model) under which the Development Partner would put forward proposals for a zonal scale heat network in the area. These proposals would need to meet minimum criteria and would be subject to review and approval by Sheffield City Council. Delivery of such a network in the area would be on a non-exclusive basis (subject to any future regulation). Sheffield City Council does not propose to have any shareholding in the corporate vehicle which will develop and, subject to the terms of the Development Agreement, go on to deliver and operate the heat network in Sheffield. More information on the scale of the opportunity, the reference scheme and the contractual and procurement approach will be presented at the Market Engagement Day.

Planning Information

The preliminary market engagement related to this project will take the form of a Market Engagement Day which will be held on 5th November 2025 in The International Suite, Sheffield United Football Club, Bramall Lane, Sheffield, S2 4SU Main session: Suppliers interested in bidding for this opportunity should complete an online registration form following the link: https://forms.office.com/e/akwPwfySmg Places are limited to 3 representatives per organisation. Booking of places will be on first come first served basis. Networking session: There will also be an opportunity for local suppliers to attend a networking lunch from 12:30 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/SBjM9cwvrm Places are limited and will be allocated on a first come first served basis. All questions raised either via the YORtender platform or at the event will be answered after the event and circulated to all attendees alongside the materials from the presentation. Both will also be included in the procurement documents published alongside the Tender Notice. Any queries regarding the Market Engagement Day should be emailed to the team on: heatnetworks@sheffield.gov.uk This market engagement exercise is not an invitation to tender or a request for formal expressions of interest. Sheffield City Council is not committed to commence a procurement in respect of this opportunity as a result of issuing this notice or conducting any market engagement.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05ac08
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/067500-2025
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement 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

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

42 - Industrial machinery

44 - Construction structures and materials; auxiliary products to construction (except electric apparatus)

45 - Construction work

71 - Architectural, construction, engineering and inspection services

CPV Codes

09323000 - District heating

42511110 - Heat pumps

44622000 - Heat-recovery systems

45211360 - Urban development construction work

45232140 - District-heating mains construction work

45232141 - Heating works

45232142 - Heat-transfer station construction work

71314000 - Energy and related services

Notice Value(s)

Tender Value
£1,000,000 £1M-£10M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
22 Oct 20254 months ago
Submission Deadline
Not specified
Future Notice Date
12 Dec 2025Expired
Award Date
Not specified
Contract Period
1 Apr 2026 - 31 Mar 2027 6-12 months
Recurrence
Not specified

Notice Status

Tender Status
Planning
Lots Status
Planning
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
SHEFFIELD CITY COUNCIL
Contact Name
Tom Hurd
Contact Email
tom.hurd@sheffield.gov.uk
Contact Phone
+44 0114205392

Buyer Location

Locality
SHEFFIELD
Postcode
S1 2HH
Post Town
Sheffield
Country
England
Major Region (ITL 1)
TLE Yorkshire and The Humber
Basic Region (ITL 2)
TLE3 South Yorkshire
Small Region (ITL 3)
TLE32 Sheffield
Delivery Location
TLE32 Sheffield
Local Authority
Sheffield
Electoral Ward
City
Westminster Constituency
Sheffield Central

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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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. 

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