ED0389-25 Delivery of District Heating to the Cranbrook Expansion Areas by an ESCo

East Devon District CouncilcontractFind a TenderRef ocds-h6vhtk-05d40fProcurement Act 2023SME suitableactive
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Estimated value

£130.0m

services

Awarded value

Suppliers

0

Lots

1

0 awarded

Published

08 May 2026

Deadline 03 Jul 2026

Description

East Devon District Council (EDDC) is seeking to engage the market in advance of procuring a long-term Energy Services Company (ESCo) to deliver a new District Heating Network to serve the expansion areas of Cranbrook. The scheme will serve the growth of Cranbrook new town, supplying low-carbon heat to approximately 4,500 new homes and 24,500m2; of commercial space, including three new schools. The project has successfully secured a £5.95 million capital contribution grant from the Green Heat Network Fund (GHNF), administered by Triple Point on behalf of the Department for Energy Security and Net Zero. This funding is intended to support the delivery of low-carbon heat infrastructure and will be made available to the appointed ESCo as a contribution towards eligible capital works. The scheme will be required to meet Future Homes and Future Building standards as set out in the updated building regulations. Planning consent for the network has already been secured under East Devon District Council’s Local Development Order (LDO) for district heating, adopted in July 2020. Additionally, the Cranbrook Plan has allocated two hectares of land for an Energy Centre and associated heat network plant and equipment within the development. The heat network will include heat distribution pipework, and a new heat generation source. The estimated annual heat demand from the new development is 34.05 GWh, with a diversified peak demand of 12.5 MW. A feasibility study has been carried out that has built the technical and economic case for the expansion. The successful bidder will need to develop the design to construction stage. This will involve coordination with the developers and their network builders/operators. The successful bidder will then operate and maintain the network for the duration of the contract in line with industry best practices and the Heat Trust Scheme Standards with a subsequent move to market regulations where applicable. The estimated contract value over a 25 year period is approximately £130 million (excluding VAT). This estimate is based on revenues generated from assumed 2025 variable and fixed tariff levels and connection charges with a 2% inflationary increase per annum. Bidders are encouraged to make value assessments for themselves to determine their own view of the value of the contract over the full term length. The given contract end date is indicative of the construction end, the expectation is that the successful bidder will then operate and maintain the network for a period of circa 80 years.

Scope

Reference
ED0389-25
Total value
£130,000,000 excluding VAT
£156,000,000 including VAT
Above the relevant threshold
Commercial tool
Standalone contract
Contract dates
06 Nov 2026 to 05 Nov 2040
Main category
services
CPV classifications
45251250
71314000
Contract locations
South West England, United Kingdom
Particular suitability
Small and medium-sized enterprises (SME)

Award criteria

Criteria the buyer will use to evaluate bids.

NameDescriptionTypeWeighting
QualityQuality Questions as per the tender documentsquality70.00%
PricePrice evaluation as per the tender documentsprice30.00%

Participation

Conditions suppliers must meet to bid.

The conditions of participation are outlined in the supporting Procurement Documentation. These conditions of participation will be assessed in accordance with the methodologies detailed within both documents. All supporting documents are available via the tendering portal: https://www.supplyingthesouthwest.org.uk/

Submission & procedure

Enquiry deadline
19 Jun 2026, 11:00 am
Submission deadline
03 Jul 2026, 11:00 am
Submission address
The competition documents associated with this procurement are available for unrestricted and full direct access, free of charge, at the Authority's e-tendering portal (Procontract) https://www.supplyingthesouthwest.org.uk Register your expression of interest on the business opportunity advert and then system will automatically allow you access to the project documentation that will be stored within "My Activities" in your account on the system.
Electronic submission
Yes
Procedure
Competitive flexible procedure