3.88 The UK needs a strategy for heat as well as for power. In addition to gas and building level technologies such as heat pumps, this is likely to include an increasing role for heat networks (often called district heating) - particularly in urban areas where the density of heat demand can make it an attractive option.
3.89 Heat networks exist at a small scale in the UK and are already widely deployed in other European countries. Many municipal authorities are already either considering or developing such systems in the UK. Because they work best as fully integrated systems, with waste, transport, energy storage, industrial waste heat and/or local power production all tied in, planning is crucial, as are public private partnerships of a complex nature.
3.90 Heat networks require significant deployment of new infrastructure and therefore face a number of barriers, notably the cost of installing the pipes, as well as questions of regulation, ownership and charging structures. The Government will set out in the new year how it will work with Local Authorities and other stakeholders to address barriers to district heating, along with barriers to other approaches to low carbon heat.