Guidance

Heat Networks Zoning Pilot

The zoning pilot aims to develop heat networks in zones where they provide lowest cost, low carbon heat to the consumer through regulation, mandating powers and market support.

Applies to England

Documents

Details

Update: Autumn 2022

Over the last 8 months of activity on the pilot, we have built a prototype heat network zoning model, which is the key step in identifying heat network zones. The model will help us map where heat networks are the lowest cost low carbon solution to decarbonise building heating.

Supporting the development of the model and to gain a better understanding of local areas, we have worked with our zoning technical consultants across the 28 cities and towns to:

  • collect building energy data where national data was incomplete or unavailable
  • understand the local conditions and geography that would make it suitable for a heat network heating solution in those specific areas

We are now bringing these workstreams together to develop representative examples of potential heat network zones within these towns and cities to help inform further policy development. Over the coming months we will:

  • test the model outputs
  • refine the identified heat network opportunity areas so they can provide an example of what heat network zones could look like

We will provide maps and reports for review and comment by our local authority partners in the New Year. We will use the learning from the pilot in subsequent policy development, which will be subject to consultation in due course.

In autumn 2021 BEIS consulted on proposals for the implementation of heat network zones. The overall aim of zoning is to develop heat networks in zones where they can provide the lowest cost low carbon heat to the end-consumer in England through regulation, mandating powers, and market support.

Following the consultation, we launched a local pilot programme which will:

  • develop, test and refine an approach to developing heat network zones
  • understand how to identify and designate zones
  • define the principles of what a heat network zone could look like in practice
  • test the methodology to be used for identifying heat network zones

We are looking to understand:

  • how zone boundaries can be developed
  • what data is required to determine zone boundaries
  • the level of granularity of data required to develop zone boundaries
  • how zone boundaries could change over time
  • sensitivities around requiring certain buildings within zones to connect to a heat network
  • requirements on certain parties to provide information to support the identification and designation of heat network zones
  • the impact of zones required to meet levels of low carbon standards
  • approaches for how heat networks are deployed in zones

We will use the learning from the pilot in subsequent policy development.

The Heat Network Zoning Pilot brings together:

  • central government
  • 28 local authority partners: Barking & Dagenham, Birmingham, Bridlington, Bristol, Canterbury, Carlisle, Cheltenham, Coventry, Darlington, Exeter, GMCA, Hull, Lancaster, Leeds, Leicester, Liverpool, Newcastle, Northallerton, Norwich, Nottingham, Peterborough, Plymouth, Sheffield, Southampton, Southwark, Stoke, Strood, and Sunderland
  • 9 zoning technical consultants (AECOM, Anthesis, Arcadis, Arup, Buro Happold, Greenfield Nordic, Ramboll, Witteveen Bos / Nordic Energy, WSP)
  • 2 model developers

Within the 28 cities and towns the Pilot will engage with the wider heat network industry and those with a broader interest in the decarbonisation of heat including:

  • local authorities
  • electricity and gas distribution network operators
  • housing associations
  • owners of large public sector and commercial non-domestic buildings (for example, NHS trusts, universities, hotels, supermarkets, office blocks)
  • owners of potential waste heat sources (energy from waste operations, data centres, industrial operators, sewage utilities)
Existing heat network density and zoning pilot city location: number of heat networks by region and type

Background

The Energy White Paper, Heat & Buildings Strategy and Net Zero Strategy committed us to introduce heat network zoning in England by 2025, as a key enabler for growing the heat network market.

In autumn 2021 BEIS consulted on proposals which envisage central and local government working together with industry and local stakeholders to identify and designate areas within which heat networks are the lowest cost, low carbon solution for decarbonising heating. A nationwide methodology will be used for identifying and designating heat network zones.

Published 12 May 2022
Last updated 24 October 2023 + show all updates
  1. Privacy notice: clarification on how commercial data and information provided to the Zoning Programme will be processed.

  2. Autumn 2022 update on pilot published.

  3. First published.