HEAT NETWORK DEVELOPMENT PARTNER

Overview

Plymouth City Council (PCC) was seeking a Development Partner (DP) to develop and deliver a heat network(s) in the Plymouth's South Coast and Derriford areas. Initially, the DP 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 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. Plymouth City Council have secured 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. The contract will consist of two stages: the Development Stage culminating in an approval gateway, and subject to that approval, the Delivery Stage. The Delivery Stage shall be subject to an evergreen (in perpetuity) Shareholders' Agreement. Therefore, the contract end dates and associated contract value below have been included for system purposes only based on the Council's best current estimate.