---
title: "Heat Network Opportunity at Granton Waterfront, Edinburgh"
ocid: "ocds-h6vhtk-03985a"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-03985a"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-03985a.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-03985a.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "CITY OF EDINBURGH COUNCIL"
published: "2024-03-21"
---

# Heat Network Opportunity at Granton Waterfront, Edinburgh

Buyer: CITY OF EDINBURGH COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-03985a

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## Summary

The City of Edinburgh Council is planning a tender for a low carbon heat network to serve the Granton Waterfront development in Edinburgh. The Council aims to identify a concessionaire to design, build, finance, operate, and maintain the network. The procurement process includes a two-stage approach where the successful tenderer will work with the Council under a Pre-Development contract before final business case approval. The concession agreement is expected to last around 40 years with the first properties ready for occupation in September 2025.

This tender presents an opportunity for businesses involved in energy and related services to compete for supplying heat from the low carbon heat network. The Council is looking for economically advantageous tenders that can demonstrate quality and cost efficiency. The procurement process aims to encourage collaboration and innovation between the Council and the concessionaire. The business potential lies in the long-term contract duration and the opportunity to expand the network to connect more customers in the Granton Waterfront and surrounding areas.

## Notice

The City of Edinburgh Council (the Council) is seeking to procure the delivery of a low carbon heat network to serve the Granton Waterfront development and existing buildings in the surrounding area under a concession model. The Council wishes to identify a concessionaire with the most economically advantageous tender to design, build, finance, operate and maintain the low carbon heat network using a two-stage process. The successful tenderer will initially be appointed to work with the Council over a c.8 month period under a Pre-Development contract before a final business case for the project is made. This approach has been devised as part of the Council's procurement strategy to reduce the burden of tendering as much as possible on tenderers and to encourage collaboration, innovation, risk apportionment, and partnership between the Council and the concessionaire. This procurement includes the opportunity to supply heat from the low carbon heat network to: the Council; the other bodies identified in this contract notice; and any Registered Social Landlords with properties in the Granton Waterfront development or surrounding area. Further details are outlined within the procurement documents.

### Lot Information

Lot 1

The City of Edinburgh Council (the Council) is seeking to procure the delivery of a low carbon heat network to serve the Granton Waterfront development and existing buildings in the surrounding area under a concession model. The Council wishes to identify a concessionaire with the most economically advantageous tender to design, build, finance, operate and maintain the low carbon heat network using a two-stage process. The Granton Waterfront development is anticipated to deliver around 3,500 homes (over 1,000 of them affordable), a primary school, a medical centre and over 9,000m2 of commercial space. Around 800 homes and 3,000m2 of commercial space are expected to be delivered as part of the first phase of the development. As part of the development and to work towards meeting the target of Edinburgh achieving net zero carbon by 2030, the council wishes to progress the delivery of a heat network that will supply cost-competitive low carbon heat to new and existing households and non-domestic properties throughout Granton Waterfront and the surrounding areas, where deemed viable. The current preferred solution identified for the low carbon heat network, following feasibility work and outline business case work is to source heat for the network from a wastewater source heat pump utilising heat from sewers. The network would utilise a sewage heat recovery system, with a ground-mounted solar PV array helping meet the system's electricity requirements. The heat would be distributed via a network of approximately 7km (depending on network routing and phasing of connections). The indicative network identified as the preferred option in the outline business case is the maximum potential scheme serving the core Granton Waterfront development plus additional customers to the south, west and east. This preferred option represents an annual heat demand of c.25,055 MWh. The successful bidder will initially be appointed to work with the Council over a c.8 month period under a Pre-Development contract culminating in a final business case for the project. This approach has been devised as part of the Council's procurement strategy to reduce the burden of tendering as much as possible on tenderers and to encourage collaboration, innovation, risk apportionment, and partnership between the Council and the concessionaire. Subject to final business case approval, the Council intends to enter into a concession agreement with the successful tenderer to design, build, finance, operate, maintain and supply heat from the heat network. The concession duration is subject to negotiation but is anticipated to be around 40 years. The concession agreement will require heat to be supplied to properties in the Granton Waterfront development with the first properties currently anticipated to be ready for occupation in September 2025. The concessionaire may also be required to incorporate a special purpose vehicle to deliver the heat network in which the Council is allotted a 'golden share' with voting rights attached. This procurement includes the opportunity to supply heat from the low carbon heat network to: the Council; the other bodies identified in this contract notice; and any Registered Social Landlords with properties in the Granton Waterfront development or surrounding area. Further details are outlined within the procurement documents.

Options: The Council anticipates that it will be possible to expand the network to connect more customers in the Granton Waterfront and surrounding areas. Expansion will be the responsibility of the concessionaire. It should be noted that the procurement process is being undertaken specifically for a heat network provider for the Granton Waterfront Development and surrounding areas, however, the Council reserves the right to extend the Agreement to other areas of the City at its sole discretion. This may include pre-development services or expansion of the network and will be discussed with the successful Tenderer only on completion of the pre-development services.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/009129-2024 |
| Notice type | Planning Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Competitive procedure with negotiation |
| Tender suitability | Not specified |
| Awardee scale | SME |
| All stages | Planning, Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 21 Mar 2024 |
| Submission deadline | 19 Jun 2023 |
| Future notice date | 30 Apr 2023 |
| Award date | 23 Jan 2024 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £200,000,000 |
| Lots value | £200,000,000 |
| Awards value | Not specified |
| Contracts value | £885,040 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Cancelled |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | CITY OF EDINBURGH COUNCIL |
| Additional buyers | EDINBURGH COLLEGE; NATIONAL GALLERIES OF SCOTLAND; NATIONAL MUSEUMS SCOTLAND; NHS LOTHIAN |
| Locality | EDINBURGH |
| Post town | Edinburgh |
| Postcode | EH8 8BG |
| Country | Scotland |
| ITL 1 | TLM Scotland |
| ITL 2 | TLM1 East Central Scotland |
| ITL 3 | TLM13 City of Edinburgh |
| Local authority | City of Edinburgh |
| Electoral ward | City Centre |
| Westminster constituency | Edinburgh East and Musselburgh |
| Delivery location | TLM75 City of Edinburgh |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | VATTENFALL HEAT |

## CPV Codes

### Divisions

- 09 - Petroleum products, fuel, electricity and other sources of energy
- 45 - Construction work
- 71 - Architectural, construction, engineering and inspection services

### Codes

- 09323000 - District heating
- 45232140 - District-heating mains construction work
- 45232141 - Heating works
- 45251250 - District-heating plant construction work
- 71314000 - Energy and related services
- 71314310 - Heating engineering services for buildings
- 71321200 - Heating-system design services

## Release History

- 21 Mar 2024 at 09:47 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/009129-2024
- 17 May 2023 at 07:47 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/013984-2023
- 18 Jan 2023 at 08:55 - Planning - Planning Notice - https://www.find-tender.service.gov.uk/Notice/001480-2023

## Notice URLs

- http://www.edinburgh.gov.uk
- http://www.edinburghcollege.ac.uk/
- http://www.nationalgalleries.org
- http://www.nhslothian.scot.nhs.uk/
- http://www.nms.ac.uk/
- http://www.publiccontractsscotland.gov.uk
- https://api.publiccontractsscotland.gov.uk/v1/Notice?id=ocds-r6ebe6-0000732198
- https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00210
- https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00290
- https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00326
- https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00423
- https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA11042
- https://www.publictendersscotland.publiccontractsscotland.gov.uk/esop/pts-host/public/pts/web/login.html

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-03985a. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-03985a.json.