Byker District Heat Network
Karbon Homes · published 19 Oct 2026
- Deadline
- 20 Nov 2026, 12:00 · questions by 11 Nov 2026, 17:00
- Estimated value
- £145,000,000 excluding VAT where stated
- Procedure
- Competitive flexible procedure · above threshold
- Contract dates
- 1 Jan 2027 to 31 Dec 2067
- Where
- North East
- Categories (CPV)
- 71334000 Mechanical and electrical engineering services
- 71321200 Heating-system design services
- 09323000 District heating
- Award criteria
- Development to contract close, consents and heritage (quality)8%
- Delivery in a live, occupied, listed estate (quality)12%
- Generation, storage, network and capacity for growth (quality)12%
- Operation, maintenance, lifecycle and handback (quality)10%
- Customers, vulnerability and regulatory compliance (quality)8%
- Social Value (quality)10%
- F1 Hurdle equity internal rate of return (cost)4%
- F2 Financial model (cost)6%
- F3 Tariff and landlord contribution (cost)16%
- F4 Pre-construction services contribution (cost)5%
- F5 Delivery stage funding (cost)5%
- F6 Grant drawdown and defrayal (cost)4%
Description
Karbon Homes invites tenders for the design, build, finance, operation and maintenance of the decarbonised Byker District Heat Network in Newcastle upon Tyne. The Byker estate is Grade II* listed, covers around 80 hectares and is live and occupied throughout. There are 1,985 connections, being 1,815 Karbon Homes connections and 170 freeholder and non-domestic connections presently supplied by Newcastle City Council, of which 1,978 are residential and 7 are non residential. The network is served by the Walker Road energy centre and twelve substations. A preliminary market engagement notice for this procurement, reference 2026/S 000-060054, was published on 25 June 2026. The description of the scheme in that notice has been superseded and tenderers should refer to the information contained within this tender pack. All documents relating to this tender are available to download from the Panacea e-Sourcing portal. Submission Instructions: Electronically via the e-Sourcing portal. Suppliers must submit one copy of their tender electronically, with any additional documents required or requested. Documents must be compatible with Microsoft Office or Adobe/PDF. Should you require technical support with the e-Sourcing portal please email them directly at:
• Email: support@panacea-software.com
• Phone: 0207 976 0116 Tenders must be submitted using the above e-Sourcing portal. Tenders submitted via postal, or email methods will not be accepted.
Deciding whether to bid?
Upload the tender pack and get a brief with every pass/fail requirement quoted from the documents, the scoring model and the questions you must answer. The first brief is free.