Hopes for lower energy bills and jobs as first clean network cities are revealed

The first areas to develop the Clean Heat Network Zones have been announced by the Government, with six towns and cities chosen for the scheme

Six towns and cities have been chosen as pioneers to launch England's inaugural clean heat network zones.

The Energy Department (DESNZ) revealed that Leeds, Plymouth, Bristol, Stockport, Sheffield, and two districts in London will spearhead the initiative that harnesses surplus warmth from sources like factories or data centres to simultaneously heat multiple buildings.

These areas are set to share £5.8m from government funding to develop the zones with construction set to being in 2026. DESNZ underscored their ambition for the scheme to bring low-cost, eco-conscious warmth to more businesses, as well as create tens of thousands of jobs across engineering, planning, manufacturing and construction.

The Minister for energy consumers, Miatta Fahnbulleh declared: "Heat network zones will play an important part in our mission to deliver clean power for the country, helping us take back control of our energy security.

"Tens of thousands of green jobs will be created across the country, and that’s why we’re investing in developing these fantastic and innovative projects – developing the first zones in cities and towns across England."

DESNZ further elaborated that these zones could pinpoint optimal locations using data analytics, streamlining the design and expansion of this state-of-the-art infrastructure. They also stressed it would become necessary for certain buildings such as hotels and large office spaces to tie into the system when financially viable.

A variety of buildings, including those with communal heating systems and large non-domestic buildings like hospitals, universities, and office blocks, will be eligible to join the network. In west London, excess heat from data centres will be utilised to provide heating in the Old Oak and Park Royal Development.

Meanwhile, in Leeds, a system is being planned to harness heat from a nearby glass factory to warm connected buildings. The pilot is part of the Government's plan to accelerate the delivery of heat networks in England, with the goal of reducing bills, enhancing energy security, and achieving net zero by 2050.

Caroline Bragg, chief executive of the Association for Decentralised Energy, stated: "We are delighted to see Government maintaining its support for the heat network sector."

"Heat network zones are crucial for a just transition for our communities – putting the UK on the lowest cost pathway to decarbonising our heat, attracting more than £3 of private investment for every £1 of public funding given and creating tens of thousands of local jobs.

"As we begin to deliver zoning at scale, it is crucial that the Government and industry continue to work together to ensure heat networks can truly unleash their potential."

Following the enactment of the Energy Act 2023, Ofgem has been provisionally appointed as the regulator for communal heat networks. The Government is set to introduce secondary legislation to establish the commencement date for Ofgem’s permanent regulation of both new and existing heat networks.

Plans are also in the pipeline to consult on proposals such as complaints handling, protections for vulnerable individuals, and fair pricing. Meanwhile, consumer advocacy bodies – Citizens Advice in England and Wales, and Consumer Scotland in Scotland – will offer advisory and advocacy services for heat network consumers.