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PROCUREMENT OPPORTUNITY

Byker District Heat Network

Karbon Homes · Tender notice on Find a Tender

Tender information last checkedLast checked 19 Oct 2026, 21:46.

Opportunity overview

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 The description of the scheme in that notice has been superseded and tenderers should refer to the information contained within this tender pack.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

Classification

  • CPV09323000 — District heating
  • CPV71321200 — Heating-system design services
  • CPV71334000 — Mechanical and electrical engineering services

Lots

  • Lot 1£145m

Documents and notices

Published notice details

Additional information from the published procurement release. Fields appear only when supplied by the source; check the original notice and tender documents before acting.

Scope, procedure and submissions

Id
202606 - GS32
Status
active
Procurement Method
open
Procurement Method Details
Competitive flexible procedure
Main Procurement Category
services
Above Threshold
Yes

Legal basis

Id
2023/54
Scheme
UKPGA

Procedure

Features
Stage one RFX Questionnaire will be evaluated on a pass/fail basis and in accordance with the information detailed within the ITT. In instances where a submission is rejected at this point, the Supplier will automatically be disqualified and will not progress to the next stage. Submissions which have met the minimum standards will be shortlisted and stage two and submissions will be evaluated in accordance with the evaluation assessment process as described below and as set out in the award criteria, within the ITT. Submissions will be ranked as part of assessment at stage two, only the highest ranked supplier will progress onto stage three. Subject to Board approval the Authorities intension is to enter into a PCSA agreement with the highest ranked supplier, whilst negotiating the final terms of the concession agreement. Any negotiation will be based on the agreement included in the tender pack, and the Authority reservice the right to engage with the next ranked supplier from stage two should any discussion become protracted or in the opinion of the Authority be unlikely to result an agreed contract.

Special regime

concession

Covered By

GPA

Submission terms

Electronic Submission Policy
allowed

Languages

en

Tender Period

Ends
20 Nov 2026, 12:00

Enquiry period

Ends
11 Nov 2026, 17:00

Expected award period

Ends
11 Dec 2026, 23:59

Lots and requirements

Entry 1
Id
1
Status
active

Value

Including VAT
174,000,000
Amount
145,000,000
Currency
GBP

Award criteria

Criteria

Criterion 1
Type
quality
Name
Development to contract close, consents and heritage

Numbers

Entry 1
Number
8
Weight
percentageExact
Criterion 2
Type
quality
Name
Delivery in a live, occupied, listed estate

Numbers

Entry 1
Number
12
Weight
percentageExact
Criterion 3
Type
quality
Name
Generation, storage, network and capacity for growth

Numbers

Entry 1
Number
12
Weight
percentageExact
Criterion 4
Type
quality
Name
Operation, maintenance, lifecycle and handback

Numbers

Entry 1
Number
10
Weight
percentageExact
Criterion 5
Type
quality
Name
Customers, vulnerability and regulatory compliance

Numbers

Entry 1
Number
8
Weight
percentageExact
Criterion 6
Type
quality
Name
Social Value

Numbers

Entry 1
Number
10
Weight
percentageExact
Criterion 7
Type
cost
Name
F1 Hurdle equity internal rate of return

Numbers

Entry 1
Number
4
Weight
percentageExact
Criterion 8
Type
cost
Name
F2 Financial model

Numbers

Entry 1
Number
6
Weight
percentageExact
Criterion 9
Type
cost
Name
F3 Tariff and landlord contribution

Numbers

Entry 1
Number
16
Weight
percentageExact
Criterion 10
Type
cost
Name
F4 Pre-construction services contribution

Numbers

Entry 1
Number
5
Weight
percentageExact
Criterion 11
Type
cost
Name
F5 Delivery stage funding

Numbers

Entry 1
Number
5
Weight
percentageExact
Criterion 12
Type
cost
Name
F6 Grant drawdown and defrayal

Numbers

Entry 1
Number
4
Weight
percentageExact

Contract period

Starts
1 Jan 2027, 00:00
Ends
31 Dec 2067, 23:59

Items and delivery

Item 1
Id
1
Related Lot
1

Additional Classifications

Entry 1
Scheme
CPV
Id
71334000
Description
Mechanical and electrical engineering services
Entry 2
Scheme
CPV
Id
71321200
Description
Heating-system design services
Entry 3
Scheme
CPV
Id
09323000
Description
District heating

Delivery locations

Entry 1
Region
UKC
Country
GB
Country Name
United Kingdom

Published documents

Entry 1
Id
conflictOfInterest
Document Type
conflictOfInterest
Description
Not published
Entry 2
Id
098720-2026
Document Type
tenderNotice
Notice Type
UK4
Description
Tender notice on Find a Tender
Published
19 Oct 2026, 20:10
Format
text/html

Buyer, suppliers and contacts

Organisation 1
Name
Karbon Homes
Id
GB-PPON-PCDL-6326-LXPW

Identifier

Scheme
GB-PPON
Id
PCDL-6326-LXPW

Address

Street Address
5 Gosforth Park, Gosforth Business Park
Locality
Newcastle upon Tyne
Postal Code
NE12 8EG
Country
GB
Country Name
United Kingdom
Region
UKC22

Contact

Name
Chris Smith

Roles

buyer

Details

Classifications

Entry 1
Scheme
UK_CA_TYPE
Id
publicAuthoritySubCentralGovernment
Description
Public authority - sub-central government
Organisation 2
Name
HNDC
Id
GB-COH-15709646
Role Details
ITT preparation and evaluation support.

Identifier

Scheme
GB-COH
Id
15709646

Address

Street Address
Printing House, 66 Lower Road
Locality
Harrow
Postal Code
HA2 0DH
Country
GB
Country Name
United Kingdom
Region
UKI74

Contact

Name
Paul McIver

Roles

procuringEntity

Recorded locations

  • Buyer location · Newcastle upon Tyne · UKC22 · NE12 8EG · United Kingdom
  • Delivery location · UKC · United Kingdom

Notice and amendment history

2 published notice versions reviewed by ProcuraAxis.

2 VERSIONS
  1. 060054-2026Preliminary market engagement notice on Find a Tender ·
  2. 098720-2026Tender notice on Find a Tender ·

PROCURAAXIS ANALYSIS

ProcuraAxis Analysis

Our approved analysis of the opportunity appears below the official tender information.

ANALYSIS PREVIEW

Opportunity intelligence at a glance

Karbon Homes is seeking a supplier for the design, build, finance, operation and maintenance of a decarbonised district heat network serving the occupied Byker estate in Newcastle upon Tyne.

Who this may suit

Relevant to suppliers able to deliver an end-to-end district-heating solution, including heating-system design, construction, finance, operation and maintenance in a live, listed residential estate.

Key points identified

  • ScopeDesign, build, finance, operation and maintenance of a decarbonised district heat network.Evidence: "design, build, finance, operation and maintenance of the decarbonised Byker District Heat Network"
  • Tender submission formatOne electronic tender copy, plus additional required/requested documents, compatible with Microsoft Office or Adobe/PDF.Evidence: "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."
  • Eligibility requirementsUnknown from supplied evidence.Evidence: No explicit eligibility, financial standing, insurance, company-size or certification criteria are stated in the supplied content.
95% approved-analysis confidence3 supplier criteria identified3 risks or unknowns

SOURCE AND FRESHNESS

Traceable procurement data

Source
Find a Tender
Notice reference
098720-2026
OCID
ocds-h6vhtk-06bd8c
First published
25 Jun 2026
Last checked
19 Oct 2026, 21:46
Notice versions reviewed
2

HOW THIS WAS PREPARED

Approved, evidence-bound analysis

ProcuraAxis structures information found in published procurement records, checks the result for consistency and publishes only approved analysis. Confidence describes the completeness and consistency of the available source information; it is not a guarantee of eligibility or contract award.

Analysis status
Approved for publication
Analysed
19 Oct 2026
Read the analysis methodology →