Oldham Launches Search for Long-Term Energy Partner in US$5.1 billion Decarbonisation Drive

Oldham Metropolitan Borough Council is procuring a long-term strategic energy and decarbonisation partnership with a Strategic Delivery Partner, in collaboration with key stakeholders, to develop and deliver net-zero infrastructure projects across Oldham.

The Development Partner will be responsible for identifying, shaping, financing, delivering, and operating a diverse portfolio of decarbonisation projects across Oldham, working in close collaboration with the Council. Drawing on its expertise, resources, and capabilities, the partner is expected to drive innovation by developing integrated, practical energy solutions while leveraging its central role within Oldham’s energy system to create and implement a forward-looking business model that captures the full value of technological and commercial synergies across various low-carbon asset classes. A central component of the Strategic Energy Partnership (SEP) is the Heat Network Reference Scheme, which incorporates the existing St Mary’s scheme and is intended to act as a foundation for the potential development of a wider zonal heat network. 

The Council and the Development Partner will jointly hold shares in a Project Company, with the Council retaining a limited “Golden Share.” This special share grants the Council control over specific reserved matters, such as carbon intensity, performance reporting, and tariff structures. Subject to approval of the Heat Network Reference Scheme at the conclusion of the development phase, the Project Company will act as the heat supplier to a range of public and private sector organisations within the borough under separate connection and supply agreements. Potential early-stage customers include Oldham Council, First Choice Homes Oldham (FCHO), The Oldham College, Royal Oldham Hospital and other NHS facilities, as well as new residential developments by Muse in Oldham Town Centre. 

The Council has obtained £8.78 million (US$11.7 million) in funding from the Green Heat Network Fund (GHNF) to support the scheme, with further expansion anticipated through the Advanced Zoning Programme (AZP). Part of the GHNF funding awarded by the Department for Energy Security and Net Zero (DESNZ) will be used to deliver early-stage works, which will subsequently be transferred to the Development Partner under the Strategic Energy Partnership (SEP) Agreement. Should the heat network project receive approval in line with the SEP Agreement, the Council plans to allocate the remaining GHNF capital funding to the Project Company through an On-Grant Agreement.

The Project Information Document (PID) outlines several potential site-specific initiatives across Council-owned assets that may form part of the SEP’s Strategic Programmes within the initial five-year Strategic Business Plan (SBP), based on currently available data. These include rooftop solar PV installations at four sites, solar carports at three sites, ground-mounted PV systems at three locations, and a biomass gasification combined heat and power (CHP) plant at one site. In addition, there is an opportunity to establish an Operation and Maintenance arrangement alongside a Power Purchase Agreement for one of the sites.

The deadline for submitting requests to participate is 27 May 2026 at 1:00 pm. For any special instructions and details regarding the award criteria, interested parties are advised to visit the Business Opportunity page.