Live Opportunity: Delivery of District Heating to the Cranbrook Expansion Areas by an ESCo
Key information
Posted: 13th May 2026
Company Name: East Devon District Council
Contact Name: Sam Evans
Contact Email: sam@stridepm.co.uk
Telephone:
Expires: 3rd July 2026
Details
East Devon District Council (EDDC) is seeking procure 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.
Categories
- Developer
- Operation and Maintenance
- Investor
- DBOM
Heat Network Exchange Disclaimer
By using this catalogue, you should know that any commercial arrangements you make with suppliers are your own responsibility. The organisations involved in creating this tool bear no responsibility for the arrangements you make by using this tool. If you are unsure what this means or have any concerns, you will need to seek your own legal advice.
This catalogue aims to help organisations to find other organisations who may offer what they cannot source via their existing supplier networks.
No assurance of the suppliers has been carried out. You will need to complete your own assurances and due diligence checks before entering into commercial agreements at your own risk.