CHP & DISTRICT HEATING


How heat networks can help decarbonise the UK


EIBI talks to Neil Fitzsimons, MD at Power On, about how electrically powered heat networks can meet the heating and hot water needs of both large-scale developments and existing buildings.


Neil Fitzsimons www.poweron-uk.co.uk


Managing director at Power On


How important a role can heat networks play in helping the UK to decarbonise and achieve its Net Zero ambitions? --------------------------------


NF Heat networks have a crucial role, as heating and hot water make up 20% of the nation’s total carbon footprint. To achieve Net Zero, the UK needs to transitio n from fossil-fuelled systems. Electrically led heat networks can deliver this at scale across the new-build market. They are also a great solution for retrofit, through heat zones. The Climate Change Committee has recommended that heat supply from heat networks should grow from the current 3% of the heat market to 20% to meet Net Zero.


How much fi nancial support is currently available from the UK government? --------------------------------


NF Heat networks are economically viable for new-build sites – and don’t need external funding. These solutions are in use in London and have evolved to use centralised heat pumps, rather than gas-fired plant. They are ready to serve new developments in towns and cities across the UK. The retrofit of existing buildings


is a greater challenge. Government has been funding support to identify opportunities to decarbonise legacy heat networks. Funding schemes include the Green Heat Network Fund (GHNF) for the decarbonisation of existing heat networks, and the Heat Network Efficiency Scheme (HNES), to support existing heat networks to improve efficiency as they prepare for decarbonisation. These funds recently received a £530 million boost as part of an allocation of infrastructure funding and we recently secured HNES funding to prepare our Hallsville Quarter network for decarbonisation. This


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island overcome some of the hurdles to heat networks becoming the norm.


What are some of the key components to a successful project and what are some of the challenges that typically need to be addressed? --------------------------------


NF Electricity use will double in the UK by 2050, as use of heat pumps and electrical vehicles grow. A key challenge is to achieve this without rebuilding the electricity grid. The UK is also moving to intermittent power generation from wind. To achieve net- zero we need to make full use of this zero-carbon generation. Another challenge is changing the approach to the heating of buildings, as currently this is viewed in isolation as the building’s problem. We can learn from the utility sector. Developers and building owners trust regulated utility providers to design, build, own, and operate all other utility services in a building. This approach needs to expand to


Hallsville Quarter is part of the £3.7billion Canning Town and Custom House Regeneration Programme being undertaken by the London Borough of Newham. The project demonstrates the flexibility of district heat as a solution because networks can be adopted, extended, and reconfigured, and heat sources changed, as and when required.


involves improved controls, enhanced insulation, and improved monitoring to reduce network operating temperatures and reduce losses.


Energy effi ciency is said to be one of the main drivers behind heat networks, but what kind of cost savings are realistic? --------------------------------


NF Our Networked Heat Pump solution uses a few centralised, highly efficient heat pumps which are optimised by smart controls during operation. The key is our use of thermal stores, alongside the heat pumps, in a Community Heat Hub. We use electricity when there is a surplus, so low cost, and store hot water. We use the stored water to avoid buying electricity when it is more expensive. We supply our customers with hot water at a lower cost, and lower carbon emissions, than an individual heat pump in a home. Typically, our existing heat-network customers see savings of up to 20% against the costs of owning their own gas boiler or individual heat pump.


What lessons are there to be learned by district-heating projects elsewhere in Europe? --------------------------------


NF Modern heat networks are used across Europe, so there's an ideal opportunity for the UK to build on this experience. The sources of heat vary across the continent. 63% of Denmark’s population is supplied from a heat network, via wide-reaching networks serving heat demands from a combination of locally generated heat from solar thermal, heat pumps, waste heat from commercial and industrial processes, and centrally generated heat from waste plants. Sweden has 57% of its heat for buildings supplied by heat networks – most from biomass, while around half of the Netherlands’ new heating systems are expected to be heat networks, fuelled by industrial waste heat, geothermal energy, solar, biomass, heat pumps, or biogas. A lot of that engineering and


commercial experience is now being used in the UK to help our comparatively densely populated


heat. By engaging with competent, experienced partners early in the project lifecycle, common hurdles such as space allowances, network and plant sizing, and loading calculations can be avoided, ensuring that the developer gets the best value capex cost, and the occupier receives the most robust service possible without overpaying for it.


Can you tell us something about Power On and what services and level of expertise the company can provide for such projects? --------------------------------


NF Power On provides the entire utility infrastructure for major developments in towns and cities. This includes heat networks, which are now electrically powered. There are obvious synergies with heat and electricity, and we can offer industry-leading electrical expertise. We focus on securing electricity


capacity from the local grid. The heat solution, with the thermal stores, means we can reduce a site’s maximum grid demand by up to 40%. This is demand-side response (DSR). Our heat solution, with an integrated grid supply, can enable sites that face this capacity constraint. Heat networks will be regulated by


Ofgem from 2025. Our Metropolitan team is our Ofgem-regulated asset owner and adopts and operates the heat networks Power On installs. Metropolitan runs heat networks across London, including Wembley and King’s Cross, so homeowners will be in safe hands with a high level of service. ■


EIBI | MARCH 2024


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