--- title: "DN762135 Competitive Dialogue Process for Peterborough Integrated Renewable Infrastructure (PIRI) Project" ocid: "ocds-h6vhtk-04b121" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04b121" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-04b121.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-04b121.json" source: "Find A Tender Service" current_stage: "Tender" buyer: "PETERBOROUGH CITY COUNCIL" published: "2025-02-10" --- # DN762135 Competitive Dialogue Process for Peterborough Integrated Renewable Infrastructure (PIRI) Project Buyer: PETERBOROUGH CITY COUNCIL Current stage: Tender OCID: ocds-h6vhtk-04b121 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04b121) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-04b121.json) ## Summary Peterborough City Council is leading the procurement process for the Peterborough Integrated Renewable Infrastructure (PIRI) Project, seeking a long-term Development Partner. The project, which falls under the public utilities industry category and has a contract value estimated at £436 million over a 40-year period, aims to develop and deliver a heat and power network across Peterborough. This comprehensive endeavour includes the design and construction of a new district heat and private wire network, a new heat offtake facility, and the expansion or modification of existing power facilities. The procurement method being used is a competitive dialogue, and the tender period concludes on 10th March 2025. Following this, the Council will enter into a Development Agreement with the selected partner to commercialise the network. This tender presents substantial opportunities for businesses in the renewable energy and infrastructure sectors. Companies specialising in investment, design, build, and management of energy networks, as well as those with expertise in securing finance and developing financial models for large-scale infrastructure projects, would be particularly well-suited. The successful partner will not only gain a significant role in a long-term collaboration with Peterborough City Council but also the opportunity to be at the forefront of innovative energy solutions, contributing to the city's net-zero carbon ambitions and establishing a sustainable energy network. ## Notice The Council is seeking a long-term Development Partner to enter into a golden share corporate special purpose vehicle (Project Co) with the Council for the development and delivery of the PIRI heat and power network. Project Co shall own, operate and delver the PIRI network. The Development Partner / Project Co will be required to provide: - Investment - Design and build of: o a new district heat (DH) network across the City o a new private wire (PW) network across the City o new PERF heat offtake facility and expansion or modification of existing power offtake facility o a new back up energy centre for the heat network - Manage and maintain the assets - Operate the new energy networks - Manage the retailing of heat and electricity sales Following completion of the procurement process, the Council will enter into a Development Agreement with the Development Partner. Under the Development Agreement the Development Partner will commercialise the PIRI network. The Development Period is intended to be a relatively short period of time that includes the following activity: * negotiation and agreement with the Council of the offtake of heat and power from the Peterborough energy recovery facility; * negotiation and agreement of the heat and / or power supply agreements with a number of private and public sector customers (including the Council) (as further detailed in [x] of the Descriptive Document); * developing the financial model for the project; * securing finance for the delivery of the PIRI network * developing the design of the PIRI network; * securing the necessary consents and land rights required to deliver the PIRI network; and * procuring the contractors required to deliver the PIRI network. If it is determined in accordance with the Development Agreement that the project is to be delivered by the Development Partner, the Development Agreement shall terminate, and the parties shall enter into a Shareholders' Agreement. The Shareholders Agreement shall govern the control of the parties in respect of Project Co. Under the Shareholders' Agreement the Council's rights of control will be limited to specific reserved matters. It is anticipated that the network will provide heat and / or power to a number of private and public sector customers (including the Council) (as further detailed in the Descriptive Document) by way of contractual arrangements at the conclusion of the Development Period. Where it is determined in accordance with the Development Agreement that the Development Partner will implement the PIRI network it is the Council's intention to enter into the connection and supply arrangements (in respect of both heat and power) with Project Co without undertaking a separate procurement. The Contract Value is derived only from the existing TEM and therefore does not include expansion of the network. The area of the PIRI network is within a prospective heat network zone (Heat network zoning maps - GOV.UK) and the Council is developing the project based on the Department of Energy Security and Network Zero's AZP model documentation. ### Lot Information Lot 1 The Council is seeking a long-term Development Partner to enter into a golden share corporate special purpose vehicle (Project Co) with the Council for the development and delivery of the PIRI heat and power network. Project Co shall own, operate and delver the PIRI network. The Development Partner / Project Co will be required to provide: - Investment - Design and build of: o a new district heat (DH) network across the City o a new private wire (PW) network across the City o new PERF heat offtake facility and expansion or modification of existing power offtake facility o a new back up energy centre for the heat network - Manage and maintain the assets - Operate the new energy networks - Manage the retailing of heat and electricity sales Following completion of the procurement process, the Council will enter into a Development Agreement with the Development Partner. Under the Development Agreement the Development Partner will commercialise the PIRI network. The Development Period is intended to be a relatively short period of time that includes the following activity: * negotiation and agreement with the Council of the offtake of heat and power from the Peterborough energy recovery facility; * negotiation and agreement of the heat and / or power supply agreements with a number of private and public sector customers (including the Council) (as further detailed in [x] of the Descriptive Document); * developing the financial model for the project; * securing finance for the delivery of the PIRI network * developing the design of the PIRI network; * securing the necessary consents and land rights required to deliver the PIRI network; and * procuring the contractors required to deliver the PIRI network. If it is determined in accordance with the Development Agreement that the project is to be delivered by the Development Partner, the Development Agreement shall terminate, and the parties shall enter into a Shareholders' Agreement. The Shareholders Agreement shall govern the control of the parties in respect of Project Co. Under the Shareholders' Agreement the Council's rights of control will be limited to specific reserved matters It is anticipated that the network will provide heat and / or power to a number of private and public sector customers (including the Council) (as further detailed in the Descriptive Document) by way of contractual arrangements at the conclusion of the Development Period. Where it is determined in accordance with the Development Agreement that the Development Partner will implement the PIRI network it is the Council's intention to enter into the connection and supply arrangements (in respect of both heat and power) with Project Co without undertaking a separate procurement. The estimated value of electricity and heat income received by Project Co will be approximately PS436m over a 40 year operating period. This includes variable, standing and connection charges and excludes inflation. The Project Company will continue to own the PIRI network following this period" Capex Value: PS82m which is before the assumed PS13.5 GHNF capital. The area of the PIRI network is within a prospective heat network zone (Heat network zoning maps - GOV.UK) and the Council is developing the project based on the Department of Energy Security and Network Zero's AZP model documentation. Options: Extension of agreements at the discretion of the contracting authority ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/004314-2025 | | Notice type | Planning Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Selective | | Procurement method details | Competitive dialogue | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Planning, Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 10 Feb 2025 | | Submission deadline | 10 Mar 2025 | | Future notice date | 27 Nov 2024 | | Award date | Not specified | | Contract period | Not specified | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | £436,000,000 | | Lots value | £436,000,000 | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Active | | Lots status | Active | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | PETERBOROUGH CITY COUNCIL | | Locality | PETERBOROUGH | | Post town | Peterborough | | Postcode | PE2 8TY | | Country | England | | ITL 1 | TLH East (England) | | ITL 2 | TLH4 Cambridgeshire and Peterborough | | ITL 3 | TLH41 Peterborough | | Local authority | Peterborough | | Electoral ward | Fletton and Stanground | | Westminster constituency | North West Cambridgeshire | | Delivery location | Not specified | ## CPV Codes ### Divisions - 65 - Public utilities - 71 - Architectural, construction, engineering and inspection services ### Codes - 65000000 - Public utilities - 71314000 - Energy and related services ## Release History - 10 Feb 2025 at 11:38 - TenderUpdate - Tender Notice - https://www.find-tender.service.gov.uk/Notice/004314-2025 - 7 Feb 2025 at 16:21 - TenderUpdate - Tender Notice - https://www.find-tender.service.gov.uk/Notice/004245-2025 - 6 Feb 2025 at 10:20 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/003909-2025 - 24 Oct 2024 at 15:46 - Planning - Planning Notice - https://www.find-tender.service.gov.uk/Notice/034560-2024 ## Notice URLs - https://procontract.due-north.com/Advert/Index?advertId=a978660b-b6e3-ef11-8134-005056b64545 - https://www.peterborough.gov.uk/business/supplying-the-council/supply-opportunities ## 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-04b121. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-04b121.json.