Plymouth City Council has announced the appointment of a Development Partner for its proposed £4.2 billion (inc VAT) heat network based on a waste heat source from South West Water Central Plant.
The Council went out to tender with the contract for a Development Partner (DP) in July 2025 to develop and deliver a heat network(s) in the Plymouth's South Coast and Derriford areas. Initially, the DP will be responsible for the 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 (PCC) will hold a "golden share" on 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).
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 theheat 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.
PCC have secured a 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.
Vital Energi Utilities Ltd, the only company who tendered, has been named as the Development Partner.
The award decision date was 23 April 2026 and assessment summaries were sent to tenderers on 29 April 2026. The standstill period will end on 11 May 2026 and earliest date the contract will be signed is 12 June 2026
Current estimated start and end contract dates are 15 June 2026 to 31 December 2097.
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 will be subject to an evergreen (in perpetuity) Shareholders' Agreement - the contract end dates and associated contract value above have been included for system purposes only based on the Council's best current estimate.
Other organisations involved in the procurement on behalf of the Council were:
- Buro Happold Ltd - project management and technical support, drafting technical reference scheme and requirements, technical tender evaluation
- Amberside Advisors Ltd - commercial advice, commercial tender documentation, FVRAT and commercial tender evaluation
- Burges Salmon LLP - legal support
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