A new district heating task force has been launched to solve challenges faced by the sector.
The Association for Decentralised Energy’s (ADE) initiative will provide recommendations on how the industry and UK Government can work together to deliver a competitive, subsidy free heat network market with strong protections for consumers.
By accessing waste heat and connecting it directly to the end customer, heat networks can provide low carbon heat, control energy costs and increase security of supply.
However, the ADE says heat networks need to see increased certainty and lower investment risk if the sector is to attract the capital it needs to stand on its own and become a key part of the transition to a green economy.
It hopes to address the competition and pricing challenges created by the natural monopoly of district heating networks and explore opportunities to help expand district heating at the local government and national government levels.
Minister for Industry and Energy, Jesse Norman said: “Heat networks are already helping to decarbonise our heat supply and provide affordable low carbon energy to thousands of homes and businesses across Britain’s towns and cities.
“The task force will play an important role in considering how to establish a sustainable and fair market as the sector expands. We look forward to receiving the recommendations.”