Heat networks
Most buildings in the West Midlands are currently heated with fossil fuels, like natural gas. This is one of the major reasons buildings contribute around 21% of the UK’s greenhouse gas emissions. If we are to move away from fossil fuels and volatile natural gas prices, this needs to change.
The most efficient and cost-effective decarbonised heat solution for each household or business will depend on many factors, and heat networks have an important part to play. Indeed, the Climate Change Commission estimates that at least 18% of the UK’s heat demand will need to be served by heat networks by 2050, with models suggesting around 19% of building heat in the West Midlands will be supplied by heat networks, up from around 2% currently.
Heat networks supply heat to end consumers via a series of underground pipes. Crucially, they are ‘heat source agnostic’, meaning they can be served by any heat source, including renewable heat sources and heat pumps. They also unlock the potential from low carbon heat sources that only become viable at scale, such as waste heat from industry or held within water bodies.
Heat networks are likely to be concentrated in urban areas of high heat demand density. This is one of the reasons heat networks will be so important in the West Midlands.
There are already some heat networks in the West Midlands, including in Birmingham and Coventry. However, uncertainty about the expansion of heat networks has been hindered by uncertainty about heat demand connecting to – and off taking from – the heat network. As a result, most heat networks to date have been small and self-contained.
UK Central Government is developing legislative frameworks to regulate heat networks and improve demand certainty. This includes introducing technical standards for heat networks, as well as consumer protection regulations.
One of the most important developments will be the introduction of heat network zoning. This aims to reduce demand uncertainty by requiring certain types of building to connect to the heat network where a zone is designated. A similar model has proven successful in other places, such as Denmark, where a requirement to connect is common. As of 2015, 63% of Danish homes were connected to heat networks.
Central Government is developing a model to identify where heat networks will represent the lowest cost option to the consumer for decarbonising heat in their area. The intention is to then to consult upon the zone and to work with local authorities to refine it.
Heat Network Zones should be coordinated by local and combined authorities acting as Zone Coordinators. Zone Coordinators will be responsible for designating areas as heat network zones and enforcing requirements within them.
The WMCA Energy Capital team is currently working with the 7 constituent local authorities to develop an integrated approach to coordinate zones and to understand how zoning can be embedded into whole systems local area energy planning. We submitted a response to the Government’s 2023 Heat Network Zoning Consultation and we are also engaging with other local and combined authorities to share learnings and approaches.