Heat networks remove the need for individual heat pumps, boilers or hot water tanks in properties, providing heating and hot water from the piped heat through a heat exchanger which for a home is around the same size as small gas boilers and can be individually controlled
Installing heat networks to replace home gas boilers in urban areas is an investment opportunity worth tens of billions of pounds, an energy company has said.
Vattenfall, the Swedish state-owned energy giant, said it is looking to invest £1billion into the infrastructure required to roll out heat networks across five to eight UK cities by 2030. Jenny Curtis, the managing director of Vattenfall Heat UK, has put a price tag on the Government’s ambition to connect 20% of British homes to heat networks by 2050, estimating it will cost £60-£80billion investment over the period.
Heat networks remove the need for individual heat pumps, boilers or hot water tanks in properties, providing heating and hot water from the piped heat through a heat exchanger which for a home is around the same size as small gas boilers and can be individually controlled.
Ms Curtis championed heat networks as the most cost-effective low-carbon option in densely populated urban zones, but stressed they need a level playing field against other green tech like heat pumps, as well as traditional gas heating. She said: “District heating is the big unsung hero of decarbonisation of heat.”
“The Government’s own target is for 20% of heat to be provided by district heating networks by 2050, so one in five homes and the majority of those that have homes in large cities will end up being on the heat network, but at the moment nobody’s really ever heard of it.”
Vattenfall’s current projects include a massive heat network in Brent Cross Town, London, which will cater to 6,700 new homes and three million square feet of commercial space, all powered by eco-friendly heat pumps and other low carbon sources. In Bristol, Vattenfall is ramping up its heat network with a hefty £475million investment plan.
This expansion will enable the network to supply enough heat for an equivalent of 12,000 homes, linking both existing and new buildings in the bustling city centre. Meanwhile, up in Midlothian, Scotland, Vattenfall is collaborating with the local council on a bold £100million investment in sustainable heating over the next five years.
This includes a heat network for Shawfair Town, an ambitious new community project featuring 4,000 homes, three schools, and a variety of shops and businesses. Ms Curtis emphasised that heat networks thrive on scale, necessitating collaborations with local authorities, the Government, and major property developers.
These partnerships are crucial to consider such schemes from tan early stage, generating the demand necessary to justify investing in expansive, enduring infrastructure. And there was a need for raising awareness with the end consumers, so when people moved into a house or their building is moved to district heating, they understand how it operates and the benefits they get from the service.
Welcoming the introduction of zoning for heat networks, Ms Curtis highlighted these zones as areas where heat networks are projected to offer the most economical solution for environmentally friendly heating. Additionally, it will become mandatory for new developments and larger buildings to connect to a heat network within a certain timeframe.
She added: “One of the really important things is that we do have a level playing field with other technologies, so that’s both in terms of heat pumps but also with gas. We need to be able to provide a positive economic rationale for people to switch away from gas to a low carbon solution.”
The existing policies and decarbonisation drivers, she said, make this achievable for new build developments, but retrofitting presents a much bigger challenge. According to her, the Government could give financial incentives to building owners to offset the initial capital costs of connecting to a heat network, similar to the £7,500 grant people receive for installing heat pumps at home.
In addition, she reinforced calls for measures to equalise natural gas and electricity prices, especially considering that electricity which powers large scale heat pumps used by some heat networks is significantly pricier than gas.
“This is such a large investment opportunity, we’re looking at £60-£80billion of investment in heat networks between now and 2050, so it’s worth getting it right because the economic growth and social value we can deliver off the back of it is huge,” she emphasised.
