Notting Dale Heat Network Project O&M

The Notting Dale Heat Network (the “Heat Network” / “Project”) is to be delivered and operated by a SPV wholly owned by the Council. It is the Council’s ambition that it will be the most reliable and proactively maintained heat network in the UK. The initial phase of the Project is to serve the Lancaster West Estate (LWE) for which the intended heat users include around 800 residential units (currently subject to a major refurbishment programme being led by the Council), a school, a large Council-owned leisure centre and business units for SMEs (Baseline Studios). The Project is anticipated to expand through future phases, which are currently being assessed. In respect to the initial phase, sources of necessary funding have been identified including award of a £1.116m HNIP capital grant. The scheme is currently at Commercialisation Stage and is intended to reach Final Investment Decision (FID) in December 2022, when firm prices for the D&B works will need to have been procured. Construction is due to start at the end of March 2023, with heat supply commencing in mid-2024, and the last heat network connections being made at the end of 2029. In summary, the O&M services for the initial phase will comprise:

1. Operation of a smart control system, dashboard and helpdesk facility under a comprehensive payment mechanism, use of remote sensors and smart error reporting to ensure resilience and performance against KPIs.
2. Provision of operations & maintenance services to include: a central ASHP/s, electric boilers, thermal store and associated equipment; together with associated energy centre and plant room/s; approximately a 1,200m primary network; and around 20 connection points (substations / HIUs) serving the residential blocks, the school, leisure centre and Baseline Studios; together with their associated secondary networks (but excluding any tertiary networks). In so doing, minimising the need for call-outs through use of the smart control system to monitor plant performance, identify issues and make adaptions
3. Provision of metering & billing services. In respect to the social housing, this is currently intended to be on a bulk supply basis to the Council, which in turn will use its existing resource to manage the individual billing to each resident, but in the future a variation may be required for the O&M services provider to meter & bill these residents directly.
4. It is currently intended that the O&M contract last for 5 years with an option to extend by a further 5 years.