OUTPUT
HEAT NETWORKS
Developing Heat Networks
Most buildings in the UK rely on a local source for their heating and hot water; homes commonly have their own gas boilers, for example. Heat networks, often referred to as district heating schemes, operate differently. They supply heat from a central source directly to homes and businesses through a network of pipes carrying hot water. This means that individual homes and business do not need to generate their own heat on site. Increasingly networks are also being used to provide cooling in a similar way, either through on-site, or centralised, absorption chillers. This brings numerous benefits including:
lEfficient transportation and use of heat for a wide variety of users lA broad range of energy generation technologies can work together to meet demand for heat lFuel flexibility lManaged supply and demand of energy l Lowered costs of energy generation l Increased fuel efficiency through use of CHP lReduced labour and maintenance cost as compared to individual systems
These in turn deliver a range of beneficial outcomes.
Modern technology allows for advanced heating controls in buildings or parts of buildings served by heat networks just as in homes powered by gas boilers. Heat networks can take, 10
and deliver, heat from a wide variety of sources. These heat sources can include dedicated central boiler plant, water, air or ground source heat pumps, heat from combined heat and power generation systems, waste to energy plants and recovered heat from industrial processes. By centralising heat supply and distribution, heat networks can be more energy efficient, deliver carbon savings and help to reduce fuel bills.
EUA Heat Networks Group
In late 2013, EUA organised a meeting with HHIC, ICOM and Utility Networks member companies interested in Heat Networks. DECC attended too, giving a presentation and update, and the meeting explored the impact that heating networks could have on the UK heating market both in terms of helping to make heat more affordable but also the potential impact on carbon emissions. All areas of the industry were represented including heat source, pipes, and metering. Actions from the meeting identified the need for more focused sub groups that could work on subject specific topics reporting back to an overall steering group overseeing output. These groups were formed following the second meeting of the Heat Network working group and the four subject specific groups are:
lHeat Sources - Boilers/CHP etc lNetworks lHeat Interface Units lMetering and Billing
If you are interested in getting involved with this group or participating in any of the working groups please contact Tahsina Khan tahsina.khan@icom.org.uk
SUMMER 2014
HEAT NETWORKS Heat Networks Delivery Unit Update from DECC Stephen Brooks, Investment Director Head of Heat Networks Delivery Unit, DECC
Government is providing support to Local Authorities to develop heat networks, keeping bills down and reducing carbon emissions.
The Heat Networks Delivery Unit (HNDU) was set up within the Department of Energy and Climate Change (DECC) in
September 2013 to encourage and enable Local Authorities to undertake the development stages of heat network projects. The response from Local Authorities to the Unit’s work has been very enthusiastic. Through the first two rounds of funding the Unit has distributed £4.7m to over 70 projects run by 50 Local Authorities. However, the Unit is more than just a distributer of funding. Local Authorities also receive one to one guidance from the Unit’s technical and commercial experts, and this in particular has been welcomed by Local Authorities. Round 3 is now open and will be accepting applications from Local Authorities until 27th June 2014, and we would encourage Local Authorities to engage with the Unit either for this funding round or to discuss applications for future rounds. There are already over 2,000 heat networks in the UK, supplying heat to more than 200,000 dwellings and commercial and public buildings. A further 150 schemes are estimated to be under development by Local Authorities across the UK. Estimates show that approximately 15% of UK heat demand could be met by heat networks by 2030
FEATURE
and around 50% by 2050, making a cost effective contribution to the UK’s decarbonisation targets.
Local Authorities have a key role to play in making heat networks succeed. They can: support private networks through the planning system; own or operate heat networks; or be a good heat customer – public buildings such as leisure centres and council offices have pretty consistent heat demand levels which helps the network operate effectively. However, the biggest impact Local Authorities can have is through leading heat networks through the initial, and often difficult, development stages, and that is where government is helping.
The Government’s March 2013 policy document “The Future of Heating – Meeting the Challenge” and the document “Research into barriers to deployment of district heating networks” showed that Local Authorities needed more capability and capacity if they were to develop successful heat networks at the scale needed to play a serious role in meeting the UK’s decarbonisation targets.
The HNDU provides grant funding, commercial experience and technical expertise to help to overcome the barriers identified in the research and comprises of technical and commercial experts who have significant experience of developing heat networks. Each of the HNDU specialists works with a number of the successful Local Authorities, calling on additional input from other HNDU colleagues where a different type of expertise is needed. The HNDU team cannot run the projects or make decisions on commissioning work from third parties, but they can act as a critical friend, helping local authority officers to find their way through the project’s development stages to reach an investible proposition. The HNDU has had great feedback from those it is already working with. Richard
Rees, Strategic Energy Manager, Birmingham City Council said, “Birmingham’s advice for anybody thinking of applying would be to approach HNDU at the earliest opportunity for initial advice. A lack of local experience or knowledge should not dissuade authorities from applying as assistance and expert guidance from HNDU is available to overcome such potential barriers.”
Steve Cains, Sustainability Manager, Swindon Borough Council said, “Working with HNDU has been refreshing. John and Charlotte were quick to spend the day in Swindon finding out more about the projects, and have since attended meetings with developers and provided clear guidance on both strategy and detail which we would otherwise not have had. I look forward to working with them in future and wouldn’t hesitate to recommend other councils apply.”
Local Authorities can apply to the HNDU for a combination of guidance and/or grant funding for all stages of heat network project development, from heat mapping, energy masterplanning and feasibility studies to detailed project development leading to the preparation of an investable grade proposal.
While we anticipate that it will be 3-5 years before many of these projects are constructed, this is a critical investment which is already changing the way that Local Authorities think about heat network projects.
To find out more about the HNDU, or to apply for funding or support, please email the HNDU hndu@decc.gsi.gov.uk
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