The Association for Decentralised Energy (ADE) has today launched a new task force on district heating.
The task force will examine how the industry and government can work together to deliver a market framework in which heat networks can compete for investment without the need for subsidies.
It will also look at how to build on an existing customer protection scheme for consumers using heat networks, Heat Trust, especially regarding important issues such as heat pricing, contract length and contract structure, areas which Heat Trust is not permitted by law to address.
In addition, the task force will also consider how to expand the number of district heat networks at the local government level. It will examine possible barriers relating to planning rules, access rights and wayleaves, and business rate treatment.
According to analysis by the Committee on Climate Change, heat networks could meet up to 18 per cent of UK heating demand by 2030, up from 2 per cent today.
Energy minister Jesse Norman insisted the new task force “will play an important role in considering how to establish a sustainable and fair market as the sector expands”.
ADE director Dr Tim Rotheray said the new task force will develop “an essential blueprint” to enable cost-effective investment and “robust” consumer protection.
“Homes and businesses will always need heat and hot water, and heat network infrastructure offers a future-proof investment that delivers for consumers,” said Rotheray.
“But we need to get the investment framework right, ensuring effective customer protection and increased investment certainty.
“Working with experts across Government, regulation, and industry, we can develop the right framework that can secure billions of pounds of infrastructure investment and create skilled jobs without subsidy,” he added.
“These can supply thousands more homes and businesses with low carbon, affordable heat, all accompanied by a high level of quality and customer protection.”