Heat Network Business Case Development resource: Commercial and Strategic Case

Through DECC’s Heat Networks Delivery Unit (HNDU) and our work with local authorities during the early stages of their heat network development projects, a need was identified for a specialised package of guidance that will help address some of the more bespoke and complex financial, commercial and delivery considerations during business case development.

DECC wishes to appoint a contractor to develop commercial and strategic guidance reports for local authorities and heat network developers, to fully understand the commercial and strategic components of heat network projects. This resource will contribute to guidance which will consider various components of heat network projects, which support the HMT Five Case business model.

HNDU have already undertaken a high-level Literature Review, and have scoped-out the commercial and strategic aspects that HNDU consider appropriate and relevant to local authorities and developers, and are worth investigating in more detail.

The contractor is expected to (but is not limited to) refine the list of existing literature available, identify case studies and undertake analysis of key commercial and strategic components to the heat network business case, and develop publishable written guidance on these topics to enable local authorities and developers to develop robust business cases.

The expected outputs are guidance documents relating to the following five areas: Commercial Case Guidance • Work Package C1 – Governance Structures • Work Package C2 – Tax and Insurance Considerations • Work Package C3 – Contracts Strategic Case Guidance • Work Package S1 – National and Regional Policies • Work Package S2 – Local Drivers

The project is subject to challenging timeframes, and the contract is expected to be completed by 25 March 2016.