UK jobs, investment and energy security: the power of heat networks in our cities

Heating remains one of the biggest sources of carbon emissions in the UK – with the energy needed to keep our homes comfortable responsible for about a fifth of our total carbon emissions.

Heat networks, which distribute low-carbon heat from a central source to various buildings, present an effective solution for decarbonising heat at scale.

We hosted a roundtable discussion at our Citigen site, bringing together a diverse group of MPs from across the political spectrum – all members of the Parliamentary Renewable and Sustainable Energy Group (PRASEG) – along with the Association for Decentralised Energy (ADE) to delve into the transformative potential of heat networks in accelerating the transition to low-carbon heating.

Insights from the roundtable highlighted:

• Heat networks could be game changers for cities and towns, especially in dense urban areas and places with access to waste heat – such as from factories, data centres, even sewers. They offer a practical, proven way to cut carbon and boost efficiency.
• This growing sector could unlock more than £100 billion in investment and deliver 50,000 new jobs for communities across the UK.
• New regulations and the introduction of ‘zoning’ to plan where heat networks are best deployed, would drive steps towards a more coordinated, consumer-focused approach.
• Local communities stand to gain from more affordable, lower-carbon heating.

The key topic under discussion was waste heat and the fact that so much heat from industrial uses is currently lost but could in future be used as significant – and affordable – source of energy across the capital.

But while the future looks promising, there are still challenges to address. One of those is in mandating buildings to connect to heat networks is crucial to instil investor confidence in constructing the new infrastructure and to promote waste heat sharing.

At the same time, increased investment is vital. Public financing, alongside enhanced incentives, will play a pivotal role in unlocking private funding streams. Robust regulation is also a necessity to bolster consumer trust and prevent unnecessary delays.

The MP discussion also heard that new legislation was expected soon, meaning there’s a real opportunity to make clean, low-carbon heat the standard across the UK.

One such project currently being explored, and being supported by E.ON, is how to create a ‘heat transmission line’ from where energy is generated, right into the centre of the city of London.

Under the plans, this pipeline would be about 11 miles (16km) in length, travelling from northern Kent on the banks of the Thames into the City of London to connect to existing heat networks or other large heat consumers. It could also provide heat for others along the way.

In a move towards a greener future, leveraging waste heat sources through heat networks can not only decarbonise heating but also drive economic growth, create jobs, and enhance energy security for cities and communities. Through collaborative efforts and strategic investments, the vision of cleaner, more sustainable urban environments powered by heat networks is within reach

Caroline Bragg, CEO of the ADE, said: “If you look, for example, at the Green Heat Network fund which is the main grant programme supporting the industry at the minute. . . of the jobs that we've created through that funding, about 60% of them are created locally, cannot be offshored. Those are local jobs being created in our cities and towns that will last for decades as we build these heat networks out.”

Mark Garnier, MP for Wyre Forest and the Shadow Economic Secretary to the Treasury, (below, left) said: “Thinking about heat as a third way of delivering energy, you start by being imaginative about where you get it from – collecting it from data centres, from power stations, from cement factories, from steel works, and on it goes. In Denmark, they take it out of sewerage, they take it out from wherever they can find heat they and that's why it suits them.”

Vijay Tank, Chief Commercial Officer: UK Energy Infrastructure Solutions (right) said: “E.ON in the UK has 8 million residential customers. Or biggest issue is the cost of the bills and how we help those more vulnerable. We have half million SME customers who need to be competitive in terms of reducing energy prices.

“The way we're really trying to look at it is as a whole energy system solution. We are absolutely here to meet the issues around how do we reduce the cost of energy, how do we make homes warmer. The work we’re doing with Coventry [and E.ON’s 15-year Strategic Energy Partnership] is very much focused on driving social value, increasing building fabric efficiency for both businesses and then talking about heat as part of a more optimal system.”