Proposals for heat network zoning
Applies to England
Read the full outcome
Detail of outcome
Given the response to this consultation, we intend to proceed with the key elements of the proposed framework including:
- developing a nationwide methodology for identifying and designating areas as heat network zones, within which heat networks are the lowest cost solution for decarbonising heat
- establishing a new zoning coordinator role, which we generally expect would be fulfilled by local government, with responsibility for designating areas as heat network zones and enforcing requirements within them
- requiring heat networks developed in zones to meet a low carbon requirement, and for certain buildings and heat sources within zones to connect to a heat network within a specific timeframe
This framework will secure key anchor loads and remove existing barriers to the development of low carbon heat networks. Ofgem will ensure all heat network consumers are provided with effective protections including those living within zones.
Responses to this consultation will help inform primary legislation needed to deliver this policy, which we will introduce when parliamentary time allows. We will also consult further on detailed policy developments ahead of introducing secondary legislation.
Detail of feedback received
We received 101 responses to our consultation from a range of stakeholders including:
- local authorities
- trade associations
- housing associations
- energy service companies (ESCOs)
- not for profit organisations
- energy companies
- network operators
- academic institutes
- engineering consultancies
Respondents were broadly supportive of our proposals, with a range of views expressed which we have taken into account in reaching our conclusions. Respondents provided constructive views on a number of areas which we will consider in subsequent policy development.
Original consultation
Consultation description
These proposals envisage central and local government working together with industry and local stakeholders to identify and designate areas within which heat networks are the lowest cost, low carbon solution for decarbonising heating.
This consultation is government’s first in what is intended to be a multi-year project developing the necessary legislation and processes for zoning. At this stage we are seeking views on the broad principles for how heat network zoning should be designed ahead of later consultations which will go into further detail. In particular we are asking for views on:
- the methodology to be used for identifying and designating heat network zones
- roles and responsibilities of different parties involved in the zoning process
- requiring certain buildings within zones to connect to a heat network, with an exemption process to avoid sub-optimal outcomes
- requirements on certain parties to provide information to support the identification and designation of heat network zones
- whether heat networks in zones should meet a low carbon requirement
- approaches for how heat networks are deployed in zones
- proposals to ensure that consumers within zones are not adversely affected
- the enforcement, monitoring and reporting regimes under zoning
The consultation will be of interest to the heat network industry and those with a broader interest in the decarbonisation of heat:
- local authorities
- electricity and gas distribution network operators
- housing associations
- owners of large public sector and commercial non-domestic buildings (for example, NHS trusts, universities, hotels, supermarkets, office blocks)
- owners of potential waste heat sources (energy from waste operations, data centres, industrial operators, sewage utilities)
- consumer advocacy groups
We have published an Impact Assessment alongside this consultation where details of the economic case are discussed in more detail.
Read the BEIS consultation privacy notice.
Please don’t send responses by post to the department at the moment as we may not be able to access them.
Documents
Updates to this page
Last updated 16 June 2022 + show all updates
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Government response published.
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First published.