HEAT NETWORK DEVELOPMENT PARTNER

Descriptions

Plymouth City Council (PCC) is seeking a Development Partner (DP) to develop and deliver a heat network(s) in the Plymouth's South Coast and Derriford areas. Initially, the Development Partner will be responsible for design and commercialisation of the proposed heat network, up to an approval gateway. The DP will be required to meet minimum mandatory requirements for the proposed heat network, set out in the Development Agreement. If approval is granted the delivery stage will commence. The DP will use a special purpose vehicle in which Plymouth City Council will hold a "golden share"

PCC has undertaken commercialisation work in relation to an initial phase of a heat network in Plymouth's South Coast area, which identified a viable commercial scheme using a significant waste heat source (South West Water Central Plant). A number of public and private sector entities, such as the University of Plymouth, Arts University Plymouth, Devon & Cornwall Police, Plymouth City Council, National Marine Aquarium, Theatre Royal and Plymouth Community Homes are interested in being connected to the heat network to meet their Net Zero ambitions, other parties may be join the scheme in future.

The Plymouth South Coast and Derriford areas have been identified through the Department of Energy Security and Net Zero's heat network zoning pilot, as being suitable for low-carbon heat networks. Exclusive rights to develop heat networks in these areas will be subject to the outcome of future Zoning Regulations.

PCC would like to draw the attention of interested suppliers to the fact that all activities delivered after the development stage shall be subject to an evergreen Shareholders' Agreement. Therefore, the contract period dates and associated contract values below have been included for system purposes only based on the Council's best current estimate.

Plymouth City Council have applied for government Green Heat Network Fund grant towards the new heat network costs, including commercialisation and construction costs. The remaining development and delivery funding will be provided by the appointed Development Partner.