An On the wire story
Energy UK and the Heat Networks Industry Council are urging ministers to commit £1bn of public money to heat networks, arguing that an upfront state-backed push could unlock a much larger wave of private capital and speed the sector’s expansion across the UK.
According to the groups’ report, heat networks currently provide about 3% of national heating demand, but this could rise to 20% over the next 25 years if policy and investment line up.
The report says a funding approach modelled on major infrastructure schemes could give investors the confidence needed to bring forward projects at scale. Energy UK and HeatNIC argue that £1bn in government support today could crowd in a further £4bn from the private sector by the end of the decade, with the wider ambition of driving £17bn of investment by 2035 and as much as £100bn by 2050.
HeatNIC says its longer-term goals include delivering 45 TWh of new heat networks by 2030 and 80 TWh by 2050, backed by tens of billions of pounds in investment.
Heat networks are promoted as a practical way to decarbonise heating in densely populated areas, while also supporting local supply chains and jobs. The report forms part of a wider argument that the UK needs a new economic model for low-carbon heat, as set out in Energy UK’s publication on local growth and the sector’s role in meeting net-zero targets.
Government has already signalled support through schemes such as the Heat Networks Investment Project and the Green Heat Network Fund, both designed to stimulate construction, expansion and retrofitting.
The call for a larger heat networks package comes as ministers also back other technologies aimed at making a cleaner power system more reliable. The Government has set aside £28m through UK Research and Innovation for ultra-long-duration energy storage projects, including advanced batteries and underground hydrogen storage, with Energy Minister Michael Shanks saying that storing homegrown clean power is critical to lowering bills and strengthening energy security.
Officials say the heat network push and the storage funding both reflect the same broader objective: cutting reliance on gas while building a more resilient energy system.
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