Published September 2023
National Targets
- By 2027, the combined supply of thermal energy by heat networks should reach 2.6 TWh of output and 6 TWh of output by 2030 (Set in the Heat Networks (Scotland) Act 2021). This is equivalent to 120,000 and 650,000 additional homes being connected to heat networks.
- By 2045 all heat networks will be decarbonised.
Key Legislation and Policies
Legislation
- The Heat Networks (Scotland) Act 2021, along with The Heat Networks (Heat Network Zones and Building Assessment Reports) (Scotland) Regulations 2023, introduced powers to regulate the heat networks market for the first time. It sets out a legal framework for delivering new heat networks and a system for their regulation and licensing to ensure best practice and sets statutory targets for heat network deployment.
- From 30 May 2023, local councils need to identify, consult on, and designate potential heat network zones in their areas.
- It places a duty on public sector bodies to undertake a Building Assessment Report for owned buildings within their estate Provisions include:
- The potential for the non-domestic building to be supplied with thermal energy by means of a heat network; and
- The period for which any system providing thermal energy to the non-domestic building is expected to continue to operate effectively and efficiently.
- The National Planning Framework 4 (Feb 2023) is Scotland’s national spatial strategy. It outlines changes to planning policy to develop heat networks, discusses connecting buildings to existing heat networks, and encouraging applications for energy from waste facilities to provide a connection to a heat network. It requires that:
- The spatial strategy should take into account areas of heat network potential and any designated Heat Network Zones;
- Development proposals that are within or adjacent to a Heat Network Zone identified in a Local Development Plan will only be supported where they are designed and constructed to connect to the existing heat network;
- Where a heat network is planned but not yet in place, development proposals will only be supported where they are designed and constructed to allow for cost-effective connection at a later date; and
- Development proposals for energy infrastructure will be supported where they:
i. repurpose former fossil fuel infrastructure for the production or handling of low carbon energy;
ii. are within or adjacent to a Heat Network Zone; and
iii. can be cost-effectively linked to an existing or planned heat network.
- Public buildings be are eligible for non-domestic rates relief if their property is being used for a district heating network. The Non-Domestic Rates (District Heating Relief and Renewable Energy Generation Relief) (Scotland) Amendment Regulations 2021 introduced a 90% relief from non-domestic rates until 31 March 2024 and 50% relief to continue until 2032; for new heat networks run from renewable sources. This replaces the gap left from the ending of UK government’s non-domestic Renewable Heat Incentive.
Policies
- Heat Networks Delivery Plan (Mar 2022) sets out how provisions of the Heat Networks Scotland Act 2021 and wider policy will contribute to delivering heat networks across Scotland. It provided information on indicative scenarios to achieve the 2030 target of the 2021 Act.
- The Heat in Buildings Strategy (2021) (p.60-65) details plans to develop legislation related to heat networks.
Looking Ahead
- Under section 92 of the Heat Networks (Scotland) Act 2021 by October 2023 ministers must specifying a 2035 target relating to the combined supply of thermal energy by heat networks, it is currently being consulted on. See here update from Dec 2022.