UK Context

According to the UK government, heat networks in the UK currently supply approximately 2% of the total heating demand, well below the 8.5% international average reported by the International Energy Agency (IEA). One of the primary reasons for this is that building owners have been able to take advantage of consistently very low gas prices and very low gas boiler costs in the UK.

On July 6th, 2022, the Energy Security Bill was introduced, aiming to deliver a ‘cleaner, more affordable, and more secure energy system’ for the UK. One of its core strategies includes legislation to stimulate the roll-out of heat networks, by designating zones in which connecting to heat network/s would be mandatory for some building owners. The UK government estimates that around 18% of UK heat demand could come from heat networks by 2050.

Heat Network Zoning

The UK heat network zoning proposed legislation is based on the expectation that within the designated zones, heat networks would provide the

“Lowest Cost, Low Carbon Solution for Decarbonising Heat”

By designating heat network zones, the UK government aims to create more commercial certainty for low carbon heat network investors and developers, with opportunities for 5th Generation District Heating and Cooling (5GDHC) roll-out.

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