Six towns and cities in England have been chosen to pilot the country’s first heat network zones.
Bristol, Leeds, Plymouth, Sheffield, Stockport, and two areas in London will receive a share of £5.8 million of government funding to develop the technology, with construction scheduled to begin in 2026.
Tens of thousands of jobs could be created in the construction, engineering, planning, and manufacturing sectors, according to the Department for Energy Security and Net Zero (DESNZ).
After the passing of the Energy Act 2023, Ofgem became a provisional regulator for communal heat networks.
How does it work?
The technology uses data to identify areas and buildings fit to recycle excess heat from, for example data centres or factories, to heat several buildings at once, with testing beginning in urban areas.
Other examples include other large non-domestic buildings over a certain size like hospitals, universities, hotels, supermarkets, and offices, and/or those that are already communally heated.
Initially, excess heat from data centres will provide “low-cost, low-carbon heating” in the Old Oak and Park Royal Development in London, while in Leeds heat will be taken from a nearby glass factory.
Results from the six pilot areas will inform the delivery of other heat networks in areas across England where zones are likely in the future.
Caroline Bragg, CEO of the Association for Decentralised Energy, said: “Heat network zones are crucial for a just transition for our communities – putting the UK on the lowest cost pathway to decarbonising our heat, attracting more than £3 of private investment for every £1 of public funding given and creating tens of thousands of local jobs.
“As we begin to deliver zoning at scale, it is crucial that the government and industry continue to work together to ensure heat networks can truly unleash their potential.”
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