The Association for Decarbonised Energy (ADE) has welcomed the Department for Energy Security and Net Zero’s (DESNZ) publication of 15 Heat Network Zone Opportunity Reports.
The reports identified more than £10bn in immediate investment opportunities across the UK, as part of the Heat Network Zoning Pilot, and which lays the foundation for heat networks to meet 20% of demand by 2050 – creating an £80bn market.
Developed with 28 local authorities, the studies aim to show heat networks can deliver low-cost, low-carbon heating.
The ADE has argued heat networks are “already proving their worth”, with the Green Heat Network Fund catalysing £2bn in infrastructure investment, and a pipeline of projects set to inject billions more into local economies.
For every £1 of public funding, the heat network sector attracts £3 in private investment, creating skilled jobs that cannot be offshored. It also said that heat networks offer a “ready-made solution” for the government’s plans for economic growth.
Pablo John, Head of External Affairs at the ADE, said:
“The ADE is excited to see the publication of 15 Heat Network Zone Opportunity Reports. The reports show over £10bn in immediate growth opportunities and a £80bn national investment runway. These reports are a clear blueprint for driving local jobs and slashing costs in our urban areas. This is how we use clean energy to supercharge UK economic growth.
“It’s vital to remember that these reports are a snapshot in time. As modelling improves, costs fall, and innovation accelerates, the zones will evolve. The true potential of heat networks extends far beyond today’s boundaries. But speed is critical. Government must now finalise zoning policy, unlock concessionary finance, and level the playing field for low-carbon heat. Failing this, we risk leaving billions in local infrastructure on the table. “
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