Deploying heat networks instead of air source heat pumps (ASHPs) could save the UK billions of pounds, according to research published on 26 February.
The Clean Heat 2040 report, produced by researchers at Bristol and Newcastle mayoral authorities, estimates that ‘ambitious’ deployment of heat networks, alongside large-scale, flexible thermal storage, could deliver annual net benefits of £3.5bn.
Commissioned by trade body ADE: Heat Networks, the study identifies three primary sources of savings:
First, shifting investment towards heat networks instead of individual ASHPs in urban and semi-urban areas could generate annual net savings of £1.1bn.
Second, reducing the need for installed electricity generation capacity – particularly offshore wind and solar – could deliver a further £1.2bn of savings annually.
Finally, £0.6bn in yearly savings would come from reduced pressure on low-voltage distribution networks that carry electricity from substations to consumers.
Together, these benefits could total £86.5bn by 2050, according to the research, which also highlights the potential for greater savings under more optimised conditions.
Annual savings could rise to £5.7bn through the deployment of large heat networks integrated with a smart electricity grid, particularly when combined with building retrofit programmes and lower battery costs.
The report, published on 16 March by ADE: Heat Networks, concludes that communal heat networks can undercut gas boilers in cost when they are connected to thermal storage and able to draw on renewable electricity during periods of low prices.
Chris Unsworth, head of ADE: Heat Networks, said: ‘This report proves that clean heat can be cost competitive with gas, but only if the government starts treating heat networks like the essential infrastructure they are.’
