This public procurement record has 2 releases in its history.

Tender

08 May 2026 at 09:43

Planning

27 Oct 2025 at 11:47

Summary of the contracting process

East Devon District Council is actively seeking to procure a long-term Energy Services Company (ESCo) to deliver a District Heating Network for the Cranbrook Expansion Areas in the UK. This competitive tender process is classified within the services industry and follows an open procurement method. The procurement, currently at the tender stage, is aimed at developing a low-carbon heat network serving around 4,500 new homes and commercial spaces. Key dates include the tender submission deadline on 3rd July 2026, with the contract awarded by 9th October 2026. The project has an estimated contract value of £130 million over 25 years, with the contract's operational phase expected to span approximately 80 years post-construction. The initiative is bolstered by a £5.95 million grant from the Green Heat Network Fund.

This tender presents a significant opportunity for businesses specialising in sustainable energy solutions and large-scale infrastructure projects. Companies experienced in district heating, sustainable construction, and energy services are well-positioned to compete. The sizable contract duration and value provide a substantial incentive for investment, fostering business growth through long-term engagement. The need for collaboration with developers and adherence to industry standards such as the Heat Trust Scheme Standards further underscores the demand for highly skilled and experienced operators that can deliver on both technical excellence and regulatory compliance. Small and medium-sized enterprises that meet the tender's economic and technical criteria may also find the opportunity attractive, contributing innovation and specialised expertise to the project's success.

How relevant is this notice?

Notice Title

ED0389-25 Delivery of District Heating to the Cranbrook Expansion Areas by an ESCo

Notice Description

East Devon District Council (EDDC) is seeking to engage the market in advance of procuring a long-term Energy Services Company (ESCo) to deliver a new District Heating Network to serve the expansion areas of Cranbrook. The scheme will serve the growth of Cranbrook new town, supplying low-carbon heat to approximately 4,500 new homes and 24,500m2; of commercial space, including three new schools. The project has successfully secured a PS5.95 million capital contribution grant from the Green Heat Network Fund (GHNF), administered by Triple Point on behalf of the Department for Energy Security and Net Zero. This funding is intended to support the delivery of low-carbon heat infrastructure and will be made available to the appointed ESCo as a contribution towards eligible capital works. The scheme will be required to meet Future Homes and Future Building standards as set out in the updated building regulations. Planning consent for the network has already been secured under East Devon District Council's Local Development Order (LDO) for district heating, adopted in July 2020. Additionally, the Cranbrook Plan has allocated two hectares of land for an Energy Centre and associated heat network plant and equipment within the development. The heat network will include heat distribution pipework, and a new heat generation source. The estimated annual heat demand from the new development is 34.05 GWh, with a diversified peak demand of 12.5 MW. A feasibility study has been carried out that has built the technical and economic case for the expansion. The successful bidder will need to develop the design to construction stage. This will involve coordination with the developers and their network builders/operators. The successful bidder will then operate and maintain the network for the duration of the contract in line with industry best practices and the Heat Trust Scheme Standards with a subsequent move to market regulations where applicable. The estimated contract value over a 25 year period is approximately PS130 million (excluding VAT). This estimate is based on revenues generated from assumed 2025 variable and fixed tariff levels and connection charges with a 2% inflationary increase per annum. Bidders are encouraged to make value assessments for themselves to determine their own view of the value of the contract over the full term length. The given contract end date is indicative of the construction end, the expectation is that the successful bidder will then operate and maintain the network for a period of circa 80 years.

Planning Information

An online presentation will be delivered by the project team via Microsoft Teams to provide an update on the project. The session will primarily address commercial arrangements and present additional detail regarding the project timeline. This presentation is intended as a market engagement activity and does not constitute a call for competition. Interested parties are invited to RSVP through the following link to receive an invitation to attend: https://events.teams.microsoft.com/event/2d232462-8ce6-4d8d-9f26-d920ba4136a9@7b064412-956e-4ebd-880e-2153190112e9 All communications must be directed exclusively through the portal to ensure that all interested parties have equal opportunity to register and receive relevant updates. The presentation will give an overview of the district heating project, which is set to be procured at a later stage. The project team will present updates on the current planning environment, outline developer intentions, and detail the proposed energy strategy for the Cranbrook Expansion Areas. Additionally, the session will include an update on the anticipated timeframes for both procurement and buildout phases. Following the session, the project team will seek feedback from attendees on the comparative merits of options currently under review. This input will support the ongoing refinement of the scheme.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05d40f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/042289-2026
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK4 - Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Competitive flexible procedure
Tender Suitability
SME
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

71 - Architectural, construction, engineering and inspection services


CPV Codes

45251250 - District-heating plant construction work

71314000 - Energy and related services

Notice Value(s)

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

Notice Dates

Publication Date
8 May 20263 months ago
Submission Deadline
3 Jul 2026Expired
Future Notice Date
9 Feb 2026Expired
Award Date
Not specified
Contract Period
6 Nov 2026 - 5 Nov 2040 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
East Devon District 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
HONITON
Postcode
EX14 1EJ
Postcode Area
Exeter
Country
England

Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK4 Devon
Small Region (ITL 3)
TLK43 Devon CC
Delivery Location
TLK4 Devon

Local Authority
East Devon
Electoral Ward
Honiton St Michael's
Westminster Constituency
Honiton and Sidmouth

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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