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The Department for Business, Energy & Industrial Strategy has announced a £40 million funding package for 7 district heating schemes - part of the government's £320m Heat Networks Investment Project, which is designed to accelerate the growth of the market.
This announcement coincided with publication of a consultation 'Heat networks: building a market framework' that proposes new measures for improving customer service, ensuring fair pricing and encouraging the growth of a low carbon heat network sector across the UK.
Richard Slee, CEO of Switch2 Energy, said: "It is good to see the government investing in the heat network sector and planning regulation that will raise levels of service and performance. The appointment of Ofgem as regulator will make sure that the entire industry adheres to the high standards that organisations like us already voluntarily commit to through The Heat Trust and CIBSE/ADE code of practice.
"We fully support plans for developing technical capabilities to improve the quality, cost and reliability of heat networks. In the current interim period, as heat networks transition away from gas to 4th and 5th generation systems, it is vital to improve efficiency of existing schemes. There is massive potential to use digital technologies to raise performance, as evidenced by our Optimise data centric management platform, which is delivering efficiency savings of 35%."
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