Moving heat networks to net zero

Ian Allan discusses proven strategies heat suppliers can use to improve decarbonisation performance on both existing and new heat networks and how to mitigate risk in the transition to net zero

 

The race to net zero is shaking up the UK residential heat network sector – driving the need for much higher levels of energy and operational efficiency on the journey to affordable decarbonisation.

Heat networks are a proven and cost-effective method of reducing the carbon intensity of UK heating. With rapid decarbonisation of the UK electricity grid, the carbon saving benefits of many of the existing natural gas CHP heat schemes are reducing. There’s a need to shift to lower carbon alternatives, such as heat pumps, waste heat and potentially hydrogen. But it’s difficult to balance financial viability with environmental benefits because natural gas is relatively cheap.

The Heat Market Framework will bring formal regulation to the heat sector. This will mandate new technical, environmental and customer service standards to raise sustainability performance and underpin rapid industry growth.

It is widely expected that the ADE CIBSE CP1 Heat Networks Code of Practice will provide a compulsory best practice manual for future decarbonisation success.

One of the key components of the new regulation, currently under consultation, is zoning. In areas of dense heat demand within cities, it is likely that buildings will be required to connect to a heat network – to export their own surplus heat, or to consume heat from the network. Zoning has already been adopted in Scotland.

The planning system is also driving sustainability improvements. This includes The Future Homes Standard, to be introduced in 2025, which will ensure that new networks supplying new buildings will be run on lower carbon heating.

It’s not enough to focus on future design and build standards of next generation networks. The UK’s 17,000 legacy heat schemes must also be future-proofed to raise cost and environmental performance and prepare to run on lower carbon fuels and technologies when commercially viable.

How do you dramatically improve the efficiency those heat schemes that have been built over the past five decades? Many run at high temperatures and low efficiencies, with poor insulation, poor plant room and network commissioning, and lack of energy control and visibility. A more intelligent approach is required and this can yield major benefits.

Your improvement plan starts with assessing your scheme against best practice – defined by the CIBSE CP1 technical standard. It’s important to find out what the gap is between your scheme and an acceptable industry benchmark.

Capturing and analysing relevant data is key to this task, which relies on gaining full real-time visibility of performance across the entire heat network. This can be achieved by combining complex data analytics from heat metering, building energy management systems (BEMS), sensors and other measurement points.

Switch2’s (AI) enabled Optimise technology uses big data and remote connectivity to gain complete visibility of heat network performance and achieve dramatic efficiency improvements that are delivering average 35 per cent savings on existing networks.

Building efficiency into renewable heat schemes at the design and planning phases is critical to minimising costs and maximising environmental performance to deliver long term value. Our Optimise technology is  also critical in shaping the efficient, low carbon design and buildof new generation heat networks.

It is important to involve operators at the design stages or, preferably, to partner with a heat network Design, Build and Operation specialist. In this way, you can ensure that your heat scheme provides long term value and delivers on its cost and carbon saving potential.

Selecting an ESCo partner will minimise risk, or you could use an energy performance contract to mitigate the risk of using a separate operator to run the network long term.

Procurement begins with a sustainability statement, setting out how the developer will satisfy ‘lean, green and clean’ planning criteria. The choices made at this stage are critical to long term performance and meeting the triple energy challenge of minimising carbon emissions, balancing costs and improving resilience.

A successful smart heat metering strategy is also keyto the efficiency, compliance, and transparency of any project. Smart metering is helping to deliver major performance improvements and will ensure compliance with new requirements for final customer meters under the Heat Network Billing and Metering Regulations.

To deliver greener heat networks cost effectively for residents it’s important to mitigate higher costs of transitioning away from gas to renewable heat schemes. One way is to integrate on-site solar generation into projects. This means you can reduce the cost of powering heat pumps with your own low-cost energy supply. You can also stack revenues by selling electricity to heat network customers.  Another option is to use thermal stores for more cost-effective heat use.

Change is here and there’s much to think about in delivering greener, affordable, dependable heat schemes. Working with specialists who can mitigate risk and can take a coordinated approach to balance low capital costs with long-term value is critical to success.

• Ian Allan is head of market strategy for Switch2 Energy