NACE 35.3 – Steam and Air Conditioning Supply | Public Tenders

Definition: NACE 35.3 covers the generation and distribution of heat and cooling via pipe-bound networks (district heating, district cooling, local heating). This includes combined heat and power plants, heating power plants and cooling centres that supply multiple users via a common pipeline network.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 35.3 cover?

NACE 35.3 (Steam and air conditioning supply) classifies companies that generate thermal energy and supply it via network infrastructure to households, businesses and public institutions — a core area of municipal service provision and climate protection.

Group 35.3 within Section D (Electricity, gas, steam and air conditioning supply) and Division 35 is broken down into the following classes:

Typical contracting authorities under NACE 35.3 are municipal public utilities and energy suppliers (as utility contracting entities under SektVO/BVergG 2018), housing companies with their own supply network and public institutions that use contracting models.

Public Tenders: Scope of NACE 35.3

District heating and district cooling supply is a classical utilities procurement area: network and supply infrastructure is operated by publicly controlled suppliers, which are subject to the special procurement regime of the Utilities Procurement Regulation.

Typical Contract Types

• District heating pipeline construction and refurbishment: Laying and renewal of supply and return pipelines, building connections, duct routes in urban supply areas
• Heat and cooling centres: New construction and expansion of heating plants, combined heat and power plants (CHP), biogas plants, geothermal plants and large heat pumps
• Energy supply contracting (ESC): Tendering of heat as a service for public properties — schools, hospitals, administrative buildings; the contractor builds, finances and operates the installation
• Heat meters and metering technology: Procurement of heat meters, smart meter integration, remote reading systems
• Control and management technology: SCADA systems, network control centres, pressure maintenance stations, energy management systems
• Biomass and waste heat use: Procurement of wood chip boilers, heat accumulators, waste heat contracts with industrial operations

Thresholds and Procedure Types

Contracting authorities that operate pipe-bound heat or cooling supply are generally utility contracting entities under § 100 GWB (Germany) or § 164 BVergG 2018 (Austria). For supply contracts, an EU threshold of EUR 443,000 applies, for works contracts EUR 5,538,000 (as of 2024/2025). Utility contracting entities have more procedural flexibility and can use the negotiated procedure without prior publication under certain conditions.

Relevant CPV Codes for NACE 35.3

CPV codes, which must be specified in every EU-wide notice on TED, bridge the NACE classification and the tender search.

Current tenders with these CPV codes can be found on TED (Tenders Electronic Daily) and on national procurement platforms such as DTVP, Vergabe24 or the Austrian Federal Procurement Portal.

Who is NACE 35.3 relevant for in public procurement?

Public Contracting Authorities

Municipal public utilities and inter-municipal energy supply companies are the dominant actors. They often operate district heating networks as natural monopolies in their supply area and, as utility contracting entities, are subject to a special procurement regime. In addition, public building owners — municipalities, federal states, federal authorities, school authorities, hospital operators — act as contracting authorities for energy supply contracting and heat supply contracts.

Companies and Bidders

For companies in NACE 35.3, different suitability evidence is required depending on the subject matter of the contract:

• Authorisation and concession: Trade authorisation as an energy supply company, network-technical approvals under EnWG/ElWOG
• Technical capability: Reference projects in district heating or plant construction (rated capacity, network length, supply density)
• Economic capability: Credit references, annual turnover, insurance (business and environmental liability)
• Certifications: ISO 50001 (Energy management system), ISO 14001 (Environmental management), EN 13941 (Pre-insulated district heating pipelines)

Contracting tenders are frequently run as a competitive dialogue or negotiated procedure, as contract structuring is complex and requires individual solutions.

NACE 35.3 in context: Section D and Division 35

NACE 35.3 is part of Division 35 (Electricity, gas, steam and air conditioning supply) within Section D — a central area of public infrastructure supply.

• NACE D – Electricity, gas, steam and air conditioning supply: Parent section covering electricity, gas and heat
• NACE 35 – Electricity, gas, steam and air conditioning supply: Division covering electricity, gas and heat supply
• NACE 35.1 – Electric power generation, transmission and distribution: Power generation and distribution
• NACE 35.2 – Manufacture of gas; distribution of gaseous fuels through mains: Gas distribution and trade
• NACE 36.0 – Water collection, treatment and supply: Drinking water collection and distribution

Frequently Asked Questions on NACE 35.3 and Public Tenders

What is the difference between district heating and local heating under procurement law?
Both fall under NACE 35.3. Local heating networks are smaller in scale (e.g. one neighbourhood, one business area) and are often operated by project developers or housing companies. Procurement classification as a utility contracting entity does not depend on the network size but on the operator structure.

How do I find current district heating tenders?
Search on TED for CPV 09323000 (District heating) or 45232140 (Construction work for district-heating mains). Contracting tenders are frequently found under CPV 50720000 (Maintenance of heating installations) or service CPVs.

Is a municipal public utility as a district heating operator subject to procurement law?
Yes, where it is a contracting authority or utility contracting entity. Public utilities that are majority municipally owned and operate supply networks are obliged as utility contracting entities to tender contracts EU-wide above the EU thresholds.

Can bidders offer energy supply contracting as a bidding consortium?
Yes. Contracting projects often require competencies in plant construction, financing and operation, which a single company rarely covers fully. Bidding consortia are permissible; the suitability requirements generally apply to the consortium as a whole.

Last updated: January 2026
All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.