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TENDER Active Services

Byker District Heat Network

Published 19 Oct 2026
19 Oct 2026
Deadline in 30 days

Primary CPV
71334000 *
Mechanical and electrical engineering services
Location
🇬🇧 North East
Value
£145,000,000
Contract
41 years Duration
01/01/2027 31/12/2067
Contract Types
71 *Architectural, engineering & inspection...
Full CPV Breakdown
SME suitable
Not stated

Publisher Address

5 Gosforth Park, Gosforth Business Park, Newcastle upon Tyne, NE12 8EG, United Kingdom · UKC

Contact

Award Criteria

  • Development to contract close, consents and heritage (8%)
  • Delivery in a live, occupied, listed estate (12%)
  • Generation, storage, network and capacity for growth (12%)
  • Operation, maintenance, lifecycle and handback (10%)
  • Customers, vulnerability and regulatory compliance (8%)
  • Social Value (10%)
  • F1 Hurdle equity internal rate of return (4%)
  • F2 Financial model (6%)
  • F3 Tariff and landlord contribution (16%)
  • F4 Pre-construction services contribution (5%)
  • F5 Delivery stage funding (5%)
  • F6 Grant drawdown and defrayal (4%)

Reference: 202606 - GS32
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 The description of the scheme in that notice has been superseded and tenderers should refer to the information contained within this tender pack.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.

Full CPV breakdown

  • 71334000 — Mechanical and electrical engineering services (primary)

Notice details

Buyer type
Local authority
Competition
Open competition (any supplier can bid)
Contract type
Services
Procurement method
Competitive flexible procedure
Main category
Services
Above threshold
Yes
Legal basis
UKPGA 2023/54
Notice status
Active
Submission method
https://app.panacea-software.com/KarbonHomes/eRFX-Suppliers/OpenReq.aspx?requirementId=ec95238b-bb91-42f1-98f2-c48da1a04291
Enquiries close
11 Nov 2026
Award decision expected
11 Dec 2026
Covered by GPA
Yes
Reserved / special regime
Concession
Language
EN
Published
19 Oct 2026 20:10
Deadline
20 Nov 2026 12:00
OCID
ocds-h6vhtk-06bd8c
Notice ID
202606 - GS32

Organisations on this notice

HNDC
Procuring Entity
Printing House, 66 Lower Road, Harrow, HA2 0DH, United Kingdom
Paul McIver
GB-COH 15709646

Everything the publisher included in this notice, organised by section.

Organisations

Party 1 › Name Karbon Homes
Party 1 › Address › Street 5 Gosforth Park, Gosforth Business Park
Party 1 › Address › Town / city Newcastle upon Tyne
Party 1 › Address › Postcode NE12 8EG
Party 1 › Address › Country GB
Party 1 › Address › Country United Kingdom
Party 1 › Address › Region (NUTS) UKC22
Party 1 › Contact › Name Chris Smith
Party 1 › Contact › Email chris.smith@karbonhomes.co.uk
Party 1 › Role buyer
Party 1 › Classification › Description Public authority - sub-central government
Party 2 › Name HNDC
Party 2 › Address › Street Printing House, 66 Lower Road
Party 2 › Address › Town / city Harrow
Party 2 › Address › Postcode HA2 0DH
Party 2 › Address › Country GB
Party 2 › Address › Country United Kingdom
Party 2 › Address › Region (NUTS) UKI74
Party 2 › Contact › Name Paul McIver
Party 2 › Contact › Email paul@hndc.co.uk
Party 2 › Role Procuring entity
Party 2 › Role Details ITT preparation and evaluation support.

Buyer

Name Karbon Homes

Tender

Title Byker District Heat Network
Status active
Item › CPV › CPV 1 › Description Mechanical and electrical engineering services
Item › CPV › CPV 2 › Description Heating-system design services
Item › CPV › CPV 3 › Description District heating
Item › Delivery › Region (NUTS) UKC
Item › Delivery › Country GB
Item › Delivery › Country United Kingdom
Value › Value incl. VAT £174,000,000
Value › Value £145,000,000
Value › Currency GBP
Procedure type open
Procedure Competitive flexible procedure
Category services
Special regime concession
Above threshold Yes
Covered by GPA
How to submit https://app.panacea-software.com/KarbonHomes/eRFX-Suppliers/OpenReq.as...
Submission Terms › Electronic submission allowed
Submission Terms › Languages en
Bidding period › End 20 Nov 2026
Questions period › End 11 Nov 2026
Award decision period › End 11 Dec 2026
Lot › Status active
Lot › Value › Value incl. VAT £174,000,000
Lot › Value › Value £145,000,000
Lot › Value › Currency GBP
Lot › Award criteria › Criterion › Criterion 1 › Type quality
Lot › Award criteria › Criterion › Criterion 1 › Name Development to contract close, consents and heritage
Lot › Award criteria › Criterion › Criterion 1 › Weighting › Weight 8
Lot › Award criteria › Criterion › Criterion 1 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 2 › Type quality
Lot › Award criteria › Criterion › Criterion 2 › Name Delivery in a live, occupied, listed estate
Lot › Award criteria › Criterion › Criterion 2 › Weighting › Weight 12
Lot › Award criteria › Criterion › Criterion 2 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 3 › Type quality
Lot › Award criteria › Criterion › Criterion 3 › Name Generation, storage, network and capacity for growth
Lot › Award criteria › Criterion › Criterion 3 › Weighting › Weight 12
Lot › Award criteria › Criterion › Criterion 3 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 4 › Type quality
Lot › Award criteria › Criterion › Criterion 4 › Name Operation, maintenance, lifecycle and handback
Lot › Award criteria › Criterion › Criterion 4 › Weighting › Weight 10
Lot › Award criteria › Criterion › Criterion 4 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 5 › Type quality
Lot › Award criteria › Criterion › Criterion 5 › Name Customers, vulnerability and regulatory compliance
Lot › Award criteria › Criterion › Criterion 5 › Weighting › Weight 8
Lot › Award criteria › Criterion › Criterion 5 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 6 › Type quality
Lot › Award criteria › Criterion › Criterion 6 › Name Social Value
Lot › Award criteria › Criterion › Criterion 6 › Weighting › Weight 10
Lot › Award criteria › Criterion › Criterion 6 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 7 › Type cost
Lot › Award criteria › Criterion › Criterion 7 › Name F1 Hurdle equity internal rate of return
Lot › Award criteria › Criterion › Criterion 7 › Weighting › Weight 4
Lot › Award criteria › Criterion › Criterion 7 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 8 › Type cost
Lot › Award criteria › Criterion › Criterion 8 › Name F2 Financial model
Lot › Award criteria › Criterion › Criterion 8 › Weighting › Weight 6
Lot › Award criteria › Criterion › Criterion 8 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 9 › Type cost
Lot › Award criteria › Criterion › Criterion 9 › Name F3 Tariff and landlord contribution
Lot › Award criteria › Criterion › Criterion 9 › Weighting › Weight 16
Lot › Award criteria › Criterion › Criterion 9 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 10 › Type cost
Lot › Award criteria › Criterion › Criterion 10 › Name F4 Pre-construction services contribution
Lot › Award criteria › Criterion › Criterion 10 › Weighting › Weight 5
Lot › Award criteria › Criterion › Criterion 10 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 11 › Type cost
Lot › Award criteria › Criterion › Criterion 11 › Name F5 Delivery stage funding
Lot › Award criteria › Criterion › Criterion 11 › Weighting › Weight 5
Lot › Award criteria › Criterion › Criterion 11 › Weighting › Weight type Percentage exact
Lot › Award criteria › Criterion › Criterion 12 › Type cost
Lot › Award criteria › Criterion › Criterion 12 › Name F6 Grant drawdown and defrayal
Lot › Award criteria › Criterion › Criterion 12 › Weighting › Weight 4
Lot › Award criteria › Criterion › Criterion 12 › Weighting › Weight type Percentage exact
Lot › Contract period › Start 1 Jan 2027
Lot › Contract period › End 31 Dec 2067
Document › Document 1 › Document type Conflict of interest
Document › Document 1 › Description Not published
Document › Document 2 › Document type Tender notice
Document › Document 2 › Description Tender notice on Find a Tender
Document › Document 2 › Link https://www.find-tender.service.gov.uk/Notice/098720-2026
Document › Document 2 › Published 19 Oct 2026
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