Reflections on UKREiiF: A Heat Networks Perspective
This year’s UKREiiF event highlighted both the scale of opportunity and ongoing challenges facing the UK Heat Network sector. The launch of multiple DESNZ Advanced Zoning Programme (AZP) procurements in the months ahead is due to coincide with the arrival of long-awaited zoning regulation. This attests to the sector’s expansion, with intent for city-scale District Heating development that will consolidate heat network infrastructure as a core asset class in the UK.
Despite this, the mood music at sector-focused panels across the event was somewhat subdued. This was driven largely by frustration over sustained delays to heat-focused government policy. Zoning regulation will equip the private sector with necessary assurances to invest at scale in Heat Network infrastructure. Whilst this policy gap remains, concerns will linger over demand certainty, supply chain availability and cost of heat for consumers.
Nevertheless, there were many encouraging signals across the three-day event, not least the enthusiasm and engagement of Local Authorities in the development of the heat sector.
Cities like Leeds, the home of UKREiiF, recognise the strategic role of heat networks in a decarbonised future energy system.
SSE’s project in the Aire Valley zone, alongside the continued expansion of Leeds City Council's Leeds PIPES network, as well as the upcoming AZP procurement in the South Bank zone, epitomise the potential of city-scale District Heating, with opportunities for interconnection and waste heat utilisation across these developments.
Increased access to devolved and central government funding for local public sector bodies are another factor that can support the sector’s continued growth and innovation. However, new funding streams and support will need to be targeted and flexibly structured, to accommodate the continued absence of supporting regulation in the heat sector.
Across the UK, there has been a demonstrable increase in cities aligning regeneration plans with low-carbon infrastructure projects.
As such, Local and Combined Authority support for District Heating is as strong as it’s ever been. With intentions seemingly aligned between the public and private sector, the key considerations for city-scale District Heating delivery are commercial viability, robust technical standards, and demonstrable public value-for-money. Each of these challenges can be addressed by the continued readiness of the public and private sector to collaborate, starting with the timely implementation of both Heat Network zoning regulation and the Heat Network Technical Assurance Scheme (HNTAS).
Looking ahead, the Future Homes Standard and upcoming government spending review are also expected to provide some of the clarity that the heat sector needs, particularly in the residential sector. In the meantime, SSE is focused on delivery, working closely with our key partners to move beyond planning and into execution. UKREiiF reinforced our role as a trusted delivery partner in the District Heating sector as it expands, helping to shape the next steps in heat decarbonisation across the UK.