Preliminary Market Engagement for Birkenhead Heat Network Development Project

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Wirral Council has announced plans to secure a private sector partner to develop a heat network in Birkenhead, UK.

The project comprises the development of a new heat network serving a mix of buildings including residential, existing residential, newly built commercial, and existing commercial. This regeneration of Birkenhead will take place across nine areas providing 21,000 new homes and almost 1,000,000m2 square metres of employment space over the next 20 years. The private sector partner is expected to take the most risk regarding the design, build, finance, operation, and maintenance of the network. As a network operator, the private sector partner will be required to connect and supply heat to specified controlled buildings. 

The Wirral Council plans to establish an Energy Service Company (ESCo) with a private sector partner, where the Council will hold a limited "Golden Share." A concession agreement will give the ESCo the design rights, to install, operate, and maintain the energy network. Expected revenue over 40 years is projected at GBP 250 million (US$ 322 million), covering all phases of the core project and potential expansion.

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