PS23249 -The provision of Review of technical assumptions and generation costs of geothermal technology for power AND Assessing the feasibility and viability of competitive geothermal heat in the UK - RAF020/2324

***Modification of the Contract***

Contract Variation 001 - the total contract value has been increased from £139,586.84 to £144,346.19 excluding VAT.

2. variation Increase value to £151,510.89 and extend time
3. variation - To amend the contract end date from 27th September 2024 to 30th November 2024.

*** THIS IS AN AWARD NOTICE, NOT A CALL FOR COMPETITION *****

This procurement is being concluded following a mini competition under the CCS Research & Insights DPS RM6126.

Brief Description of Requirement

This research will improve the evidence behind costs and viability of geothermal heat and power projects in the UK. It will enable geothermal to be presented on par with other renewable energy technologies and feature geothermal in policy and strategy design.

Power

This research will support wider departmental modelling of the GB electricity generation system and net zero electricity generation pathways to 2050, which is key to understanding potential electricity generation mixes required to ensure a low-cost, stable, and net zero future. Outputs of this research will feed into published Government analysis including but not limited to a forthcoming update to DESNZ's Electricity Generation Costs Report, and the contractor's final report(s) may be published alongside or separately as supplementary supporting evidence.

By understanding the technical and economic challenges facing geothermal for power (and power and heat combined), DESNZ can ensure that the right policies are in place to fulfil the power sector's needs. For example, the outputs will support decision-making in Allocation Round 7 of the Contracts for Difference renewable electricity support scheme.

Heat

This research will support understanding of the cost of developing heat networks with a geothermal heat source. It will help establishing the financial viability by clearly defining all costs involved with a geothermal plant and will enable comparison with other heat sources in DESNZ decarbonisation models where it is not currently considered. The cost benefit analysis of different funding support mechanisms will be used by policy makers when assessing and comparing policy options to support geothermal energy, in the context of the support to low carbon heat networks.