UK Department for Business, Energy & Industrial Strategy

09/20/2022 | Press release | Distributed by Public on 09/20/2022 09:52

Heat networks

What are heat networks?

A heat network - sometimes called district heating - is a distribution system of insulated pipes that takes heat from a central source and delivers it to a number of domestic or non-domestic buildings. The heat source might be a facility that provides a dedicated supply to the heat network, such as a combined heat and power plant; or heat recovered from industry and urban infrastructure, canals and rivers, or energy from waste plants.

Find out more: What is a heat network?

Heat networks form an important part of our plan to reduce carbon and cut heating bills for customers (domestic and commercial). They are one of the most cost-effective ways of reducing carbon emissions from heating, and their efficiency and carbon-saving potential increases as they grow and connect to each other. They provide a unique opportunity to exploit larger scale - and often lower cost - renewable and recovered heat sources that otherwise cannot be used. It is estimated by the CCC that around 18% of UK heat will need to come from heat networks by 2050 if the UK is to meet its carbon targets cost effectively.

Available support

The Heat Networks Delivery Unit ()

The Heat Networks Delivery Unit was established in 2013 to address the capacity and capability challenges which local authorities identified as barriers to heat network deployment in the UK. The Unit provides funding and specialist guidance to local authorities who are developing heat network projects.

Heat Networks Investment Project ()

The Heat Networks Investment Project is delivering £320 million of capital investment support to increase the volume of heat networks built, deliver carbon savings for carbon budgets, and help create the conditions for a sustainable market that can operate without direct government subsidy. The pilot phase of the Heat Networks Investment Project ran for 6 months and awarded £24 million to 9 successful Local Authority projects in March 2017.

Investing in heat networks

UK heat networks represent a significant investment opportunity across distribution, generation, storage, controls and customer interface.

A key challenge that has been identified to us by a number of Local Authorities is uncertainty over which third party investors are actively considering investment in the heat network sector. If you are looking for an investor, or are an investor looking to invest, visit https://tp-heatnetworks.org/bhive.

Various guides have been published for potential investors:

Delivering UK Energy Investment: Networks 2014

Investing in the UK's heat infrastructure: Heat networks

The Community Heat Network Toolkit provides guidance on community-led heat network projects:

Community Heat Network Toolkit

The National Heat Map was decommissioned by BEIS in April 2018. The tool was designed to help prioritise locations for more detailed investigation, rather than for designing heat networks directly. The data, including the address level data underpinning the tool, is no longer believed to be accurate and for that reason is no longer available. There are currently no plans to reintroduce or replace the National Heat Map with a similar tool.

Regulation and consumer protection

The Heat Network (Metering and Billing) regulations 2014 implement the requirements in the Energy Efficiency Directive with respect to the supply of distributed heat, cooling and hot water:

Heat network metering and billing regulations: compliance and guidance

The government is supporting industry-led initiatives to improve consumer protections and technical standards. These include the Heat Trust and the CIBSE Code of Practice.

Heat Network Guidance Documents

Heat networks: guidance for developers and supply chain

Other Publications relating to heat networks

What is a heat network?

Heat Networks Case Studies

The future of heating: meeting the challenge, March 2013

Low Carbon Cities evaluation

Summary evidence on district heating

Rural Community Energy Fund

Costs of heat networks

Heat network innovation competition (25 June 2015).