II.2.2) Cod(au) CPV ychwanegol
09300000
09323000
71314200
71321200
II.2.3) Man cyflawni
Cod NUTS:
UK
II.2.4) Disgrifiad o’r caffaeliad
When heat network zoning regulations come into force we intend to move the SWAN area forward for designation as a heat network zone, or possibly a heat network delivery area within a wider zone, with the successful bidder for this procurement benefiting from the proposed incumbency rules as they apply to the SWAN area. In relation to activities beyond the limits of the SWAN Area the successful bidder for SWAN would need to bid for zone rights through the competed process managed by either the future Zone Coordinator or Central Authority as appropriate.
Framework Duration
The Contract duration shall be for a period of 18 months with optional extension of 12 months.
Type of Agreement
The governance model for SWAN is proposed to be a Development Agreement during the commercialisation phase of Project SWAN (2024-2026). The Development Agreement will set out the key objectives currently envisaged for SWAN, including:
• A low carbon heat network to be developed in the Westminster area,
• The network that is taken to delivery will need to be of sufficient size
• The pace of delivery
The Development Agreement will have bilateral termination rights dependant on certain contingent outcomes primarily focused on:
• Does the project remain viable?
• Has a GHNF grant been obtained for the project?
The Development Agreement will have payment terms that relate to achievement of agreed milestones.
Should the project be successfully commercialised then there would be a decision point about whether to take the project forward to delivery. A feature of the Development Agreement will be that the Department owns all of the assets developed during commercialisation (surveys, reports, designs etc.): should the Department consider the fully commercialised project to be viable and compliant, and the Development Partner wish to take the project to delivery stage, then the Development Partner would be obliged, under the terms of the Development Agreement, to purchase these assets from the Department at fair value - we will confirm, prior to the launch of the procurement, how this value will be determined.
Should the project be taken forward to delivery, the Department’s governance over the project from that point onwards would be through the Grant Funding Agreement under the Green Heat Network Fund (assuming the application is successful), If accepted by the Development Partner, the Grant Funding Agreement will contain a claw-back feature should the project materially deviate from relevant commitments made in the grant funding application, including in relation to milestones and a programme of works.
Beyond this, the Department’s long-term objectives are intended to be achieved through regulations regarding customer protection, technical standards and potentially heat network zoning, should the SWAN area be designated as a heat network zone, from 2025 when these regulations are due to come into force.
Timeline (all dates are indicative only and subject to review)
Supplier day – end of March 2024
Tender release – April 2024
Tender deadline – 2 months after release – June 2024
Assessment – 1 month following tender close – July 2024
Standstill period – End of July
Contract Award – August 2024
The Department will be running a supplier engagement event, consisting of a virtual session. To receive details of forthcoming events, please email Michael.ONeill@energysecurity.gov.uk. Presentations will be made available after the session.