It wants a single contractor to design, build, finance, maintain and operate the scheme at no financial risk to the council.
The contract will also contain the option for specific supply contracts for the University of Leicester and HMP Leicester and for future supply contracts, including but not limited to a variety of private and public sector users.
The winning firm will take over responsibility for the management, operation and maintenance of all existing boiler-houses, networks and plant providing affordable, reliable and controllable heat, and in some cases hot water, to existing users.
It will also be expected to reduce the CO2 emissions to meet the city and the council’s target of a 50 per cent reduction by 2025 with 20 per cent of the council’s consumption coming from renewable energy by 2020.
The contract will be procured through the competitive dialogue process and contractors will be required to bid for two options.
Solutions will be required with and without the option for the metering, billing and collection provisions relating to residential properties.
Firms have until 10 September to express their interest in the project.