Editor’s Pick | Scotland leading the way on UK heat networks

This article was originally published on 29 November 2019 in Energy:2030 Issue 23

Scottish Renewables published a piece of research on 11 November, in-light of the Scottish Government’s proposed Heat Networks Bill. The research looked to identify and quantify potential heat network projects in Scotland’s seven cities.

The Heat Networks Bill, which will be brought forward in 2020, will seek to regulate the nascent sector and develop policies that can de-risk investment and stimulate development.

The seven cities analysed by CAG Consultants, hired by Scottish Renewables to complete the survey, are Glasgow, Edinburgh, Aberdeen, Dundee, Stirling, Inverness, and Perth. For the purposes of this study heat networks are defined as those serving more than one customer and more than one building, excluding communal networks which typically serve one building but multiple customers.

Following a range of interviews with key stakeholders, such as local authorities and industry players, as well as analysis of planning applications and public tenders, 46 potential projects were identified in Scotland. For context, there are currently 113 heat networks in operation in Scotland.

There was a range of characteristics to these projects (see Figure 1). The headline findings state that the 46 projects could deliver 600GWh of heat per year, the equivalent to heating 45,000 households, and that 103,000 tonnes of carbon emissions could be avoided annually if built with low-carbon heat sources.

The study found that there is potential for growth in the Scottish heat network market. It is estimated that with the right policy environment that the heat networks identified in this project could grow to meet 8% of Scottish heat demand by connecting additional buildings.

Three growth scenarios are presented as low, medium and high. It assumes all policy and economic barriers are addressed, including connection of anchor loads and new customers, supported by a drive from Government. If this was to occur, 8% of heat demand could be met through the 46 projects identified in this survey.

A caveat to this estimation is that heat networks are a local solution to heat, and expansion will be dependent on local characteristics.

District heat networks are a proven, low-regrets option to deliver decarbonised heat. They could help realise the SNP commitment to ensure that, from 2024, all new homes use renewable or low-carbon heat, as mentioned in the party’s 2019 General Election Manifesto.

For all regular updates on the Scotland energy sector, visit our website Scottish Energy News.

If you have enjoyed reading this article and want to read about the latest developments in energy markets around the world, please contact the Editor, Neil Mearns, for a free month’s trial.

Energy:2030 is a monthly publication covering relevant and interesting developments including:

  • market mechanisms and regulatory incentives
  • technological developments and their anticipated impact
  • changing policy as it evolves both in the UK and worldwide

REQUEST A FREE TRIAL HERE

Related thinking

Commercial and market outlook

2021’s most exciting ‘Charts of the week’

Some of our team have looked back throughout 2021 and picked their most exciting 'Chart of the week'. Read about their choices and click through to read the full 'Chart of the week'. To do so, you need a free Cornwall Insight account which is easy to create here. Green...

Heat networks

Heat network approaches being developed by devolved administrations and UK government

A number of further consultations on the policy approaches for heat networks have been issued in recent weeks:  The Scottish government published its draft Heat Networks Delivery Plan on 15 November, outlining how it will quintuple heat demand provided from heat networks in Scotland by 2030; and The UK government issued...

Heat networks

Heat and buildings strategy: Key points

On 19 October, the government released the Heat and Buildings strategy outlining how the government will tackle the decarbonisation of the built environment to help meet the UK net zero ambition. Our experts have taken a quick look at the strategy and highlighted the key points. Heating The strategy makes...

Heat networks

Reallocating electricity policy costs to incentivise low carbon heating technologies

Funding the cost of decarbonising the power system has mainly been through the consumers' electricity bills. In fact, in 2020-21 these costs amounted to a whopping £10bn. But is this method of raising revenue for decarbonisation still fit for purpose when faced with the need to decarbonise the nation's heat?...

Energy storage and flexibility

How nuclear energy can help the UK reach its net zero goals

This article was originally written in Energy Spectrum on 21 March 2021. To find out more about a subscription to Energy Spectrum, please contact Nick on n.palmer@cornwall-insight.com. There are several challenges to reaching net zero, where its proponents believe nuclear could add value. Some of tomorrow’s main issues concern: How to provide low...

Commercial and market outlook

Heat pumps and peak power demand in North-West Europe in 2030

In March Cornwall Insight launched its new Energy Spectrum Europe publication in collaboration with the Institute of Energy Economics at the University of Cologne (EWI). Below is an extract of our Energy Perspective article from our latest issue, written by Nils Namockel from EWI.  Heat pumps powered by green electricity...

Low carbon generation

Up north and down south – trends for generator TNUoS charging

The topic of generator Transmission Network Use of System (TNUoS) is becoming a subject of increasing interest for stakeholders as regulation, policy, and the generation mix create potential volatility for future charging trends. The significant costs posed through TNUoS are an important consideration for generators, with high variability between regions...

Low carbon generation

Let markets run or regulate to accelerate: a false choice or key net zero decision?

Earlier this week Cornwall Insight convened a group of industry leaders from across the energy and investment space to discuss business preparedness for net zero, and what more can be done to unlock capital to make net zero a reality. The session, hosted by our non-executive chairman Volker Beckers, is...