Future of heat networks dependent on zoning and rebalancing levies

Heat network zoning and rebalancing the levies will be the deciding factors in whether the UK sees a successful deployment of heat networks. That was the verdict from the panel at the Association for Decentralised Energy’s (ADE) Heat Network Conference last week.

The event, hosted in partnership with Womble Bond Dickinson (WBD), saw experts from across the heat network sector come together to map out critical new approaches to public investment and local delivery with the general election just round the corner.

Speaking to a room full of industry experts, Melanie Onn, who is standing to be Labour MP for Great Grimsby & Cleethorpes, emphasised the support there is from Labour’s side to decarbonise domestic heating by 2030. Melanie went on to highlight the key role industry and local authorities play in implementing this transition, reiterating that an integrated approach must be taken in order to boost Britain’s energy confidence.

Throughout the afternoon, speakers from the Department for Energy Security and Net Zero, Greenpeace, the National Infrastructure Commission (NIC) and many more took to the stage to discuss new approaches to sector growth. Margaret Reid, Director of Policy at the NIC said: “The conference was a great chance to hear about current developments in heat network policy and deployment and about the innovation that’s driving the sector forward.

“One of the key takeaways from the conference was bringing home the point that heat networks can’t just be thought of solely as a means of decarbonise heating. Their potential role within the broader system – including providing flexibility, or utilising waste heat – will be important to consider as part of a more holistic, whole systems approach to the energy transition.”

Reflecting upon the array of speakers, the ADE’s Heat Network Policy Officer, Mike Tisdell, said: “Despite major strides in recognising the central role the sector will need to play in decarbonising heating, not just through zoning policy, but also in the maturation of the sector represented by incoming consumer regulation and technical standards, continued challenges remain.

“The vision of city-scale heat networks operating as an additional utility will require clear and consistent commitment from government. Ensuring clean heat networks are not unfairly disadvantaged on costs remains a crucial issue, with the rebalancing of levies away from electricity still at the front of minds, as industry mobilises to roll-out low-carbon heat networks across the UK at scale.”

Andrew Hirst, Partner at WBD, said: “The discussions on the day brought out lots of interesting insights – including the challenges and opportunities that could arise as well as the planning and policy needed – ideas that will impact the transition to and growth of the sector. Undoubtedly, heat networks present one of the best opportunities in terms of decarbonising the UK and it's clear that the conversation is far from over.”

For further comment or interview, please contact external.affairs@theade.co.uk.