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INDUSTRY COMMENT


Pete Mills, commercial technical operations manager for Bosch Commercial & Industrial,


discusses the main factors in the Heat and Buildings Strategy, with specific reference to the future of Heat Networks


It is true that the Strategy has received mixed review, with concerns about whether it will deliver the carbon reductions needed to meet our pledges to cut overall emissions to 78% by the middle of the next decade.


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Of course, the Heat and Buildings Strategy released by the UK Government only affects England, since the devolved nations can set their own strategies in this area.


Aside from the usual headline-grabbing statements about gas boilers and heat pumps, heat networks have continued on a steady pathway, since they are very much seen as a low- regrets technology within the policy document. This also aligns with the Committee on Climate Change recommendations that heat networks should look to meet 18% of the UK’s heat demand by 2050.


Next­steps


The focus now is on transforming the market for heat networks to speed the take-up and crucially attract the investment that will make them scalable. The foundations of this transformation have been underway for some time now following the Competitions and Markets Authorities (CMA) recommendations to regulate the industry. The Government responded with the Heat Networks Market Framework proposal that is due sometime around 2025. This will be regulation of the industry that will mandate minimum technical standards as well as providing consumer protection in line with other utilities.


Getting heat networks to a place where they will consistently deliver cost effective reliable heat for consumers is needed to attract the private investment, which will accelerate growth. If this is achieved, it could attract between £30 billion and £50 billion pounds of investment.


A transformation


But this is just part of the process. We also need to ensure our existing heat networks, many of which are based on natural gas-fired boilers or combined heat and power (CHP) plants, can transfer to low carbon heat sources. To help this process, Government has pledged a £338m Green Heat Network Fund, which is expected to run from 2022/23 to 2024/25. Whether or not this will be sufficient to make a significant difference for this transformation is debatable and


there is concern that with so many of the heat networks built over the last decade being small, that this money will not be attracted. The Heat and Buildings Strategy recognises that heat networks are large infrastructure projects which take time to realise, so the message is to start now.


This presents both a big opportunity for new jobs in the Green Economy as well as a significant challenge to find the skills needed. The document refers to the appraisal to be carried out 2021/22 as part of the Heat Network Skills Program. Skills are a key piece of the jigsaw when it comes to getting the good quality heat networks that consumers need to have confidence in this transformation. Currently there are no recognised qualifications or occupational codes for workers in the heat network industry, and clearly addressing this will be a priority. The Heat Network Industry Council (HNIC) has said that growth within the heat network sector could generate between 20,000 and 35,000 jobs by 2050, if ambitions are realised.


Looking ahead


So where will these heat networks be built? The consultation recently started by the department for Business Energy and Industrial Strategy (BEIS) into heat network zoning points the way. The intention is to introduce new primary and secondary legislation to allow Local Authorities to identify geographic areas within towns and cities that lend themselves to heat networks.


This generally means areas where there is sufficient heat requirement density, so dense urban areas with a mix of property types and heat usage patterns, which would minimise infrastructure costs. The key metric for determining if an area is viable will be whether heat networks represent the lowest cost option to provide low-carbon heat. This is where the ability of a heat network to use a wide variety of low carbon heat sources, including waste heat, comes in.


Heat network zoning represents a fundamental part of the Heat and Buildings Strategy’s approach to heat networks and is a very clear statement of the commitment to them as part of the route to decarbonise heat.


It will not be without controversy though, as certain building types, such as all new large non- domestic buildings that already have communal heating and any buildings undergoing refurbishment would be compelled to connect. The consultation stops short of compelling individual homeowners to connect but suggests that there might be a 10-year time limit on this. This is an approach that has been used successfully in Denmark.


The eventual effect the Heat and Buildings Strategy will have on the rate that we transform our heat demands to low carbon sources will take some time to see. For heat networks though it could be transformative if the level of ambition is realised.


www.bosch-thermotechnology.com


he long-awaited Heat and Buildings Strategy has finally been released after months of uncertainty as to what it would contain and what was causing the delay.


BSEE Updates from the Heat and Buildings Strategy


Read the latest at: www.bsee.co.uk


BUILDING SERVICES & ENVIRONMENTAL ENGINEER DECEMBER 2021 7


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