--- title: "Soft Market Testing for Heat Network Zone Developer" ocid: "ocds-h6vhtk-048717" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-048717" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-048717.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-048717.json" source: "Find A Tender Service" current_stage: "Planning" buyer: "CITY OF LONDON CORPORATION" published: "2024-08-02" --- # Soft Market Testing for Heat Network Zone Developer Buyer: CITY OF LONDON CORPORATION Current stage: Planning OCID: ocds-h6vhtk-048717 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-048717) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-048717.json) ## Summary The City of London Corporation is currently in the planning stage for a soft market testing initiative aimed at assessing market interest in developing a zonal scale heat network within the Square Mile, alongside potential partnerships to deliver wider energy system decarbonisation measures. The initiative falls under services related to the oil and gas industry and covers the entire Square Mile in London, UK. The proposed soft market testing is essential prior to possibly launching a formal open tender process. A key date to note is 1 January 2025, when a future notice may be issued. The decision to move forward with a competitive tendering process will depend on forthcoming regulations and legal frameworks concerning heat network zoning. This tender can create significant opportunities for businesses specialising in low-carbon energy systems and infrastructure development. Companies capable of forming strategic partnerships to innovate and deliver decarbonisation measures would find this opportunity particularly advantageous. With an estimated investment of over £1.2 billion required to decarbonise more than 1,000 GWh/year of heat across 1,200 buildings, there is substantial potential for market participants to engage in high-value projects. The City of London Corporation's involvement in the Department for Energy Security and Net Zero's Advanced Zoning Programme underlines the scale and ambition of this initiative, making it a lucrative opportunity for businesses in the energy sector. ## Notice Soft Market testing Prior to considering whether to commence a formal open tender process, the City Corporation wishes to establish the level of market interest in a zonal scale heat network development within the Square Mile and potential partnerships to deliver wider energy system decarbonisation measures to address the priority areas identified in the CoL LAEP. This activity does not, however, commit the CoLC to running a competitive tender process in the future. The decision to run this process will be made when further information is available on the heat network zoning regulations and the forthcoming legal regime. Assuming the entire Square Mile becomes a heat network zone, the City Corporation wish to explore through this Soft Market testing the market interest in participating in a future competitive process which may allow for future zoning rights to be awarded for developing heat networks within this future zone. ### Lot Information Lot 1 The LAEP outlines the need for holistic thinking when considering the future energy needs of the square mile. As such, the City Corporation must consider potential partnerships and delivery models with organisations able to deliver low-carbon energy systems in the Square Mile The City Corporation have been participating in the Department for Energy Security and Net Zero's (DESNZ) Advanced Zoning Programme (AZP), recently completing stage 1. The outputs of the initial stage of the AZP have indicated that whole of the Square Mile is likely to be designated as a Heat Network Zone when regulations are implemented. It is estimated that this would require a total investment of over PS1.2bn to decarbonise more than 1,000 GWh/year of heat delivered to over 1,200 buildings. It is envisaged that the first phase of this will require a circa PS120m investment. It should be noted that, as the heat network zoning framework, including zoning regulations and designations, is still uncertain at this stage, the CoLC cannot guarantee that the Square Mile will be a Heat Network Zone, and ultimately future decisions by the Zoning Coordinator may differ from current thinking. There is currently an operational heat network in the Square Mile - The Citigen Heat and Chill Network. This network is owned and operated by E.ON, and connects to a number of CoLC and private buildings in an area in the North West of the Square Mile. The CoLC have a cooperation agreement to support this network by leasing space for energy centres and acting as an anchor load. Soft Market testing Prior to considering whether to commence a formal open tender process, the City Corporation wishes to establish the level of market interest in a zonal scale heat network development within the Square Mile and potential partnerships to deliver wider energy system decarbonisation measures to address the priority areas identified in the CoL LAEP. This activity does not, however, commit the CoLC to running a competitive tender process in the future. The decision to run this process will be made when further information is available on the heat network zoning regulations and the forthcoming legal regime. Assuming the entire Square Mile becomes a heat network zone, the City Corporation wish to explore through this Soft Market testing the market interest in participating in a future competitive process which may allow for future zoning rights to be awarded for developing heat networks within this future zone. ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/024273-2024 | | Notice type | Planning Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Not Specified | | Procurement method details | Not specified | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Planning | ## Dates | Field | Value | | --- | --- | | Publication date | 2 Aug 2024 | | Submission deadline | Not specified | | Future notice date | 1 Jan 2025 | | Award date | Not specified | | Contract period | Not specified | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | Not specified | | Lots value | Not specified | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Planned | | Lots status | Planned | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | CITY OF LONDON CORPORATION | | Locality | LONDON | | Post town | Central London | | Postcode | EC2P 2EJ | | Country | England | | ITL 1 | TLI London | | ITL 2 | TLI4 Inner London - East | | ITL 3 | TLI43 Haringey and Islington | | Local authority | Islington | | Electoral ward | Clerkenwell | | Westminster constituency | Islington South and Finsbury | | Delivery location | Not specified | ## CPV Codes ### Divisions - 24 - Chemical products - 65 - Public utilities - 76 - Services related to the oil and gas industry ### Codes - 24000000 - Chemical products - 65000000 - Public utilities - 76000000 - Services related to the oil and gas industry ## Release History - 2 Aug 2024 at 10:48 - Planning - Planning Notice - https://www.find-tender.service.gov.uk/Notice/024273-2024 ## Notice URLs - http://www.capitalesourcing.com - https://www.cityoflondon.gov.uk/about-us/about-the-city-of-london-corporation ## 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-048717. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-048717.json.