Guidance

Heat Networks Zoning Pilot

The zoning pilot setaims out to develop aheat consistent,networks standardisedin methodologyzones towhere identifythey areasprovide wherelowest heatcost, networkslow arecarbon expectedheat to provide the lowestconsumer cost,through lowregulation, carbonmandating heatpowers toand buildings.market support.

From:
Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy
Published
12 May 2022
Last updated
24 SeptemberOctober 20242023 — See all updates

Applies to England

Documents

Heat Networks Zoning Programme: privacy notice

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Details

Update: Autumn 2022

TheOver firstthe outputslast from8 thismonths pilotof areactivity availableon andthe canpilot, bewe usedhave tobuilt identifya whereprototype heat networksnetwork existzoning and/ormodel, arewhich highlyis likelythe tokey growstep orin beidentifying builtheat outnetwork inzones. The model will help us map where heat networks are the future. lowest cost low carbon solution to decarbonise building heating.

TheSupporting heatthe networkdevelopment zoneof identificationthe pilotmodel hasand developedto gain a methodologybetter forunderstanding identifyingof local areas, we have worked with our zoning technical consultants across the 28 cities and towns to:

  • collect building energy data where heatnational networksdata arewas expectedincomplete toor provideunavailable
  • understand the lowestlocal cost,conditions lowand carbongeography that would make it suitable for a heat tonetwork buildings.heating Thissolution methodologyin isthose intendedspecific toareas

We beare usednow bringing these workstreams together to identifydevelop representative examples of potential heat network zones.zones Thewithin pilotthese involvedtowns testing and refiningcities to help inform further policy development. Over the methodologycoming andmonths definingwe will:

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

We inwill practice.provide Duringmaps theand pilotreports wefor workedreview withand 28comment by our local authority partners asin wellthe asNew technicalYear. andWe modellingwill consultantsuse tothe testlearning from the methodologypilot in differentsubsequent areas.policy Thisdevelopment, helpedwhich uswill understandbe issuessubject suchto asconsultation howin zonedue boundariescourse.

In shouldautumn be2021 definedBEIS andconsulted whaton dataproposals isfor requiredthe toimplementation determineof zoneheat boundaries.  

Lessonsnetwork fromzones. theThe pilotoverall haveaim beenof usedzoning is to informdevelop theheat developmentnetworks ofin Heatzones Networkwhere Zoningthey Policy.can Onceprovide the responselowest cost low carbon heat to the heatend-consumer networkin zoningEngland consultationthrough isregulation, publishedmandating wepowers, willand bemarket updatingsupport.

Following the methodologyconsultation, towe reflectlaunched thea finallocal policypilot position,programme expandwhich itwill:

  • develop, test and refine an approach to coverdeveloping allheat ofnetwork England,zones
  • understand undertakehow detailedto qualityidentify assuranceand ofdesignate zones
  • define the model,principles andof launchwhat a digitalheat productnetwork tozone allowcould stakeholderslook like in practice
  • test the methodology to viewbe potentialused for identifying heat network zones

We onare alooking map.to understand:

Background

The Energy

  • how Whitezone Paper, Heatboundaries &can Buildingsbe Strategy and Netdeveloped
  • what Zerodata Strategy committedis usrequired to introducedetermine heatzone networkboundaries
  • the zoninglevel inof Englandgranularity byof 2025,data asrequired ato keydevelop enablerzone forboundaries
  • how growingzone theboundaries heatcould networkchange market.over Thetime
  • sensitivities Energyaround Actrequiring 2023certain containsbuildings legislationwithin zones to bringconnect to a heat network
  • requirements zoningon intocertain forceparties andto inprovide 2023information  weto consultedsupport onthe proposalsidentification forand designation of heat network zoningzones
  • the impact of zones required to informmeet secondarylevels legislation. 

    Theof locallow authoritiescarbon thatstandards

  • approaches participatedfor how heat networks are deployed in zones

We will use the heatlearning networkfrom zoningthe pilot were: 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, GreaterGMCA, Manchester Combined Authority, Hull, Lancaster, Leeds, Leicester, Liverpool, Newcastle, Northallerton, Norwich, Nottingham, Peterborough, Plymouth, Sheffield, Southampton, Southwark, Stoke, Strood, and Sunderland Sunderland

Nine

  • 9 zoning technical consultants (AECOM, Anthesis, Arcadis, Arup, Buro Happold, Greenfield Nordic, Ramboll, Witteveen Bos / Nordic Energy, WSP)
  • 2 alsomodel workeddevelopers

    • Within on the pilot. 

    The28 pilotcities involvedand engagingtowns the Pilot will engage with the wider heat network industry asand well as those with a broader interest in the decarbonisation of heat including: including:

    • local authorities authorities
    • electricity and gas distribution network operators operators
    • housing associations associations
    • owners of large public sector and commercial non-domestic buildings (for example, NHS trusts, universities, hotels, supermarkets, office blocks) 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

    Updates

    Background

    The toEnergy thisWhite page

    PublishedPaper, 12Heat May& 2022
    LastBuildings updatedStrategy     24and SeptemberNet 2024 + showZero all updatesStrategy

    1. Theus firstto outputsintroduce fromheat network zoning in England by 2025, as a key enabler for growing the heat network zoningmarket.

      In pilotautumn are2021 availableBEIS consulted on proposals which envisage central and canlocal begovernment usedworking together with industry and local stakeholders to identify whereand designate areas within which heat networks existare and/orthe arelowest highlycost, likelylow tocarbon growsolution orfor decarbonising heating. A nationwide methodology will be builtused outfor inidentifying theand future. designating heat network zones.