Heat network techno-economic feasibility study for Didcot

Award Criteria

Quality 30% Carbon Reduction & Energy Efficiency 5% Social Value 5% Price 60%

Description

This project will deliver a heat network feasibility study for an area northwest of Didcot. The study will consider the potential combination and/or expansion of potential heat network zones identified by the National Zoning Model (NZM), by incorporating opportunities provided by adjacent data centre development proposals. 400,000sqm of data centres are proposed by several developers on brownfield land adjacent to the operational Didcot Power Station (Oxfordshire). The NZM has not considered these future waste heat sources. The overarching aims of this study are: To review heat network zone development opportunities, to help prepare for the introduction of heat network zoning policy. To determine whether heat network scheme(s) for the specified area are viable. To understand how heat network schemes can be delivered in alignment with the forthcoming Heat Network Zoning Regulations. To set out for the council the range of possible delivery models based on different levels of local authority leadership and investment. To provide decision makers with recommendations which describe the next steps required to take the project through to delivery. Study Objectives & Work Package Summary: The council will commission a techno-economic feasibility study, incorporating elements on heat network zoning, for the development of a low carbon heat network at Didcot. This specification is based on the Heat Networks Delivery Unit Zoning Study and Feasibility Study Specifications from February 2026, with some additions to reflect the local context and circumstances. The outputs should meet the requirements to support a Green Heat Network Fund application. The study objectives are: Identify the potential for heat network zones and/or heat networks in alignment with the Heat Network Zoning Policy, reviewing the currently proposed zones and potential for expansion. Assess the technical and economic feasibility of conceptual heat network projects within the local area. Identify the key heat demand opportunities, key heat sources, and the potential energy centre sites that may unlock delivery of heat network zones. Identify any key timescales, opportunities and risks to the development of the heat networks identified. Produce a report to summarise the findings of the study. Scope of Works: The following scope of works outlines the key activities to be undertaken as part of this study. The process involves identifying major heat demands, heat sources, and potential distribution networks, and reviewing potential heat network zones. Techno-economic modelling should be undertaken a high-level alongside a description of the assumptions used, including the counterfactuals assumed. The study must provide the Client with a clear and justifiable basis upon which to evaluate the full potential for heat networks in the study area, for both the short and long-term and how these may best be delivered. It should also be sufficient to enable the Client to complete the Economic Case within an HM Treasury compliant Outline Business Case. For avoidance of doubt, the consultant should check what the latest guidance is from HNDU. The study should be aligned with the latest CIBSE/ADE Heat Network Code of Practice. Please refer to tender documentation for further details.

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