Isabelle Jones, Analyst – Sites, Energy Systems Catapult
Heat networks are integral to the UK government’s strategy for achieving the nation’s Net Zero targets. They offer a compelling pathway for decarbonising buildings, providing low carbon heat on a scalable basis with the potential to reduce fuel bills. While today only 3% of the UK’s heat requirement is met through heat networks, this could reach 20% by 2050.
Energy Systems Catapult was commissioned by the Department for Energy Security and Net Zero (DESNZ) to produce a comprehensive, non-technical guide to help the public sector better understand heat networks and how they impact heat decarbonisation plans.
The Catapult engaged extensively with industry stakeholders, including sector experts, public sector site owners, heat network developers, and local authorities to gain insights into the challenges of heat network connection from a site owner’s perspective. The guide provides an accessible introduction to heat networks, detailing the key elements that make up a heat network, the different types of heat networks, the sources of heat, and a simple description of how heat networks work.
The guide covers the following topics:
Benefits of heat network connection
Heat networks create a local marketplace for a diverse range of heat supply sources to meet demand in a cost-effective and sustainable manner.
The guide outlines the system-wide benefits of heat networks including future proofing heating supply systems, increasing overall energy efficiency and enhanced energy supply resilience. It highlights the benefits for the heat network customers, such as reduced space requirements for customer heating systems, less maintenance, and effective heat decarbonisation, while also addressing potential drawbacks such as less control over the primary fuel source (and therefore the carbon intensity of the heat), and responsibilities for remedial works. This balanced perspective is designed to support public sector organisations in making informed decisions about adopting heat networks.
Heat network regulation and zoning – what it means for you
The UK government plans to introduce heat network regulation and zoning that will impact existing and future heat networks. Heat network regulation is expected to significantly improve consumer rights and protections. This initiative aims to facilitate the widespread decarbonisation of heating in buildings. Through the implementation of zoning, specific types of buildings and low carbon heat sources can be mandated to connect to a heat network within a designated timeframe.
Stakeholder management – getting everyone on board
It is important to get the right stakeholders on board early in the process when investigating the feasibility of a heat network connection. This will help to ensure they are well-informed. You are also likely to need representation from legal, finance, energy, sustainability, and estates teams. The guide presents a five-step approach to managing internal and external stakeholder interactions to ensure the best chance of successfully delivering the heat network connection.
Customer journey to connect to a local heat network
Connecting to a heat network can seem overwhelming due to novelty and perceived uncertainties associated with the technology, and complexities around regulation and contractual arrangements. The guide simplifies the customer experience by breaking it into six steps: engaging with the local authority and heat network operator, undertaking a techno-economic and carbon impact assessment, negotiating contractual arrangements, heat substation design, and on-site system improvements, commissioning, metering and billing.
Customer rights and protections
Under new heat network regulations in the UK, heat network customers will soon receive protections on energy prices and service level guarantees comparable to those provided to customers connected to electricity and gas networks. Ofgem, the office for gas and electricity markets, has been named by the UK government as the future regulator of heat networks across England, Scotland and Wales. The guide outlines what can be expected in the upcoming regulations and what protections are available for heat network customers.
Grant funding available for heat networks
The Public Sector Decarbonisation Scheme provides capital grant funding for the decarbonisation of public buildings in England. The application portal is open from 9 October and will close on 25 November 2024. With the incoming heat network zoning regulations, the application has placed additional emphasis on the importance of considering heat networks within the range of low carbon heating technology options for applicants. The guide takes an in-depth look into funding sources for heat networks and what you will need to consider as part of making a robust application for funding.
Read the free Heat Network Guide and download other free guidance, toolkits and templates from the Catapult’s Public Sector Decarbonisation Guidance website.
This article appeared in the Nov/Dec 2024 issue of Energy Manager magazine. Subscribe here.
