Sydney Council has knocked back the only tender to build its trigeneration network.

 

Trigeneration systems use natural gas to produce low carbon electricity and zero carbon heating and cooling, and can be installed in building basements.

 

The council aims to take most, if not all, of city buildings off the coal-fired grid as part of its 2030 goal to cut carbon emissions by 70 per cent, protecting city businesses and residents from soaring power costs and a planned price on carbon.

 

In July 2010, the council invited energy companies to tender for the building and operating of a network of trigeneration systems to supply electricity, heating and cooling to the city’s five aquatic centres, the Town Hall precinct and Customs House and its more than 200 other buildings.

 

The request for tender also included an option to supply trigeneration to privately-owned buildings.

 

Cogent Energy, owned by power giant Origin Energy, was the only company to submit a tender.

 

However, according to the council, the complexity of building Australia’s first ever trigeneration network and the rigidity of local government tender processes meant that no bids conformed to all tender specifications. The council has delegated authority to Ms Barone to open up negotiations with interested companies.

 

“The Local Government Act allows Council to reject all tenders, and then open up wider negotiations, and that’s what we’ve decided to do here,” council CEO Monica Barone said.

 

A spokesman for Origin Energy said the company will continue working with Sydney Council on its plans for trigeneration.

 

“What we understand is that council is going to start afresh, so we’re keen to speak to them in terms about what they want to do next, and redesigning or negotiating our tender,” the spokesman said.