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Energy Partner for Midlothian and surrounding areas

Midlothian Council

This public procurement record has 1 release in its history.

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13 Nov 2020 at 00:00

OJEU - F3 - Contract Award Notice
Summary of the contracting process

Midlothian Council is looking for an energy partner for the tender titled "Energy Partner for Midlothian and surrounding areas". This procurement falls within the works category, aiming to establish decentralised energy projects including district heating and solar PV in Midlothian, UK. The project is currently in the contract award stage, with the successful bid awarded to Vattenfall Heat UK Limited for a value of £100 million. Key components of the project must be commissioned by September 2021 to meet specific funding conditions. The Council, along with other authorities, has established a jointly owned Energy Services Company (ESCO) to facilitate these developments.

This tender offers significant opportunities for businesses involved in energy solutions, particularly those specialising in renewable energy systems, energy efficiency projects, and infrastructure development. Companies capable of implementing and managing energy systems, such as heating networks or solar installations, would be prime candidates to compete. The collaboration focuses on both the design and operational aspects of energy services, suggesting a promising avenue for firms aiming to engage in long-term, sustainable energy projects in the region.

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Notice Information

Notice Title

Energy Partner for Midlothian and surrounding areas

Notice Description

Midlothian Council (the Council) is seeking to procure an energy partner. The Council wishes to identify a partner with the most economically advantageous tender to work with the Council on the scoping, design, procurement, financing, implementation, delivery, operation and maintenance of decentralised energy projects in Midlothian and the surrounding areas (including but not limited to district heatin, direct wire electricity, solar PV and electric vehicles) together with associated works, services and supplies. The first project likely to be progressed is the development, delivery and operation of a top up/back up energy centre and associated district heating network to serve the new emerging Shawfair Town. The primary source of low carbon heat will be from an adjacent existing Energy from Waste facility. The Council requires elements of this project to be commissioned by September 2021 to meet applicable funding conditions.

Lot Information

Lot 1

Midlothian Council is seeking to procure an energy partner. The Council wishes to identify a partner with the most economically advantageous tender, to work with the Council on the scoping, design, procurement, financing, implementation, delivery, operation and maintenance of energy projects in Midlothian and surrounding areas (including but not limited to district heating, direct wire electricity, solar PV and electric vehicles) together with associated works, services and supplies. It is anticipated that this will involve development of a joint venture with the Council. The nature of the joint venture and potential funding and financing solutions will be explored during dialogue but is likely to involve the creation of a jointly owned Energy Services Company (ESCO). The duration of the joint venture will also be discussed in dialogue but it is possible that if an ESCO is established that it would not have a pre-determined lifespan. The Council will then enter into a concession agreement with the ESCO for the development and delivery of projects involving Council heat loads or land or generally within Council control. The concession duration will be explored during dialogue but the Council anticipates that this will be 25-40 years. The first project likely to be progressed is the development, delivery and operation of an energy centre and associated district heating network to serve the new emerging Shawfair Town of up to 2900 homes plus associated Council buildings such as a new school. The Council requires the first phase of this scheme to be commissioned by September 2021 to meet applicable funding conditions. The Council anticipates that this project will involve a concession granted to the ESCO by the Shawfair developer, Shawfair LLP. The concession duration will be explored during dialogue but the Council anticipates that this will be 25-40 years. The heat source identified for the initial projects is the energy from waste plant situated at the former Millerhill Marshalling Yards in Midlothian and operated by FCC under contract with City of Edinburgh Council for the benefit of City of Edinburgh Council and Midlothian Council. It is anticipated that other projects will subsequently be identified and awarded to the successful partner. The partner will be responsible for identifying and developing such projects. This will be subject to all necessary permissions, partner performance and the availability of funding or financing. In each case these projects, including the Shawfair scheme, may involve the sale of energy to the Contracting Authority and the other Contracting Authorities named in the OJEU notice.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-r6ebe6-0000615228
Publication Source
Public Contracts Scotland
Latest Notice
https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=NOV399732
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
OJEU - F3 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Selective
Procurement Method Details
Competitive dialogue
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

CPV Codes

45251250 - District-heating plant construction work

Notice Value(s)

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

Notice Dates

Publication Date
13 Nov 20205 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
4 Nov 20205 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

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

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Midlothian Council
Additional Buyers

East Lothian Council

NHS Lothian

Queen Margaret University

Scottish Enterprise

The City of Edinburgh Council

University Of Edinburgh

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

Buyer Location

Locality
DALKEITH
Postcode
EH22 1DN
Postcode Area
Edinburgh
Country
Scotland
Major Region (ITL 1)
TLM Scotland
Basic Region (ITL 2)
TLM1 East Central Scotland
Small Region (ITL 3)
TLM11 East Lothian and Midlothian
Delivery Location
TLM73 East Lothian and Midlothian
Local Authority
Midlothian
Electoral Ward
Dalkeith
Westminster Constituency
Midlothian

Supplier Information

Number of Suppliers
1
Supplier Name

Vattenfall Heat UK Limited

Further Information

Notice Documents

  • https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=NOV399732
    Energy Partner for Midlothian and surrounding areas - Midlothian Council (the Council) is seeking to procure an energy partner. The Council wishes to identify a partner with the most economically advantageous tender to work with the Council on the scoping, design, procurement, financing, implementation, delivery, operation and maintenance of decentralised energy projects in Midlothian and the surrounding areas (including but not limited to district heatin, direct wire electricity, solar PV and electric vehicles) together with associated works, services and supplies. The first project likely to be progressed is the development, delivery and operation of a top up/back up energy centre and associated district heating network to serve the new emerging Shawfair Town. The primary source of low carbon heat will be from an adjacent existing Energy from Waste facility. The Council requires elements of this project to be commissioned by September 2021 to meet applicable funding conditions.

Open Contracting Data Standard (OCDS)

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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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