HeatSource champion news: Vattenfall to invest £1 billion to deliver clean heating in up to eight UK cities.
Swedish state-owned firm Vattenfall said it was looking to invest more than £1 billion in the infrastructure needed to deliver heat networks in five to eight cities in the UK by 2030.
Meeting the Government's objective to have 20% of homes connected to heat networks by 2050 will necessitate an investment ranging from £60 to £80 billion over the specified period, as highlighted by Jenny Curtis, Managing Director of Vattenfall Heat UK.
Heat networks offer a centralised heating solution, eliminating the need for individual heat pumps, boilers, or hot water tanks in properties. They deliver heating and hot water through a network of pipes, utilizing heat exchangers that are comparable in size to small gas boilers and allow for individual control.
Curtis emphasised that heat networks often present the most cost-effective low-carbon option in densely populated urban areas. However, to compete effectively with other clean technologies like heat pumps and gas heating, a level playing field is crucial.
District heating plays a pivotal role in decarbonizing heat and remains an underappreciated asset in the realm of sustainability. Vattenfall is actively engaged in various projects, such as the development of a heat network in Brent Cross Town, London, to serve 6,700 new homes and commercial spaces. In Bristol, the company is expanding its heat network with an investment of £475 million, catering to the heating needs of approximately 12,000 homes. Additionally, Vattenfall is collaborating with the council in Midlothian, Scotland, to invest £100 million in low-carbon heating, including a heat network for the Shawfair Town development project.
Curtis stressed that successful implementation of heat networks requires collaboration with local authorities, government entities, and major real estate developers early in the planning stages to generate sufficient demand for large-scale, enduring infrastructure. Educating end consumers about the benefits and operations of heat networks upon their transition to such systems is also vital.
She applauded the introduction of zoning for heat networks, which designates areas where heat networks offer the most cost-effective clean heating solutions. Furthermore, providing financial incentives for building owners to connect to heat networks, akin to grants for heat pump installations, can facilitate the transition to low-carbon solutions. Achieving a balanced pricing structure between gas and electricity is also crucial to incentivize the adoption of cleaner heating methods.
The Department for Energy Security and Net Zero emphasized the importance of heat networks in transitioning to cleaner heating alternatives. Collaborative efforts with industry and local authorities have already resulted in substantial investments, with a focus on enhancing consumer protection and ensuring fair pricing for heat network users.