New ADE framework could unlock major investments
The report, ‘Levelling the playing field: Unlocking heat infrastructure investment’, sets out fifteen heat network opportunities, ready to attract £2 billion in capital investment, with the decentralised energy industry arguing that the proposals would “level the playing field for district heating.”
A further 165 projects are also being developed by the industry, while the ADE proposals call for an end to punitive business rates, a better sharing of investment risk to lower the cost of network infrastructure, and an extension of the Government’s heat network advice body.
The organisation states that the recommendations would deliver on Energy Secretary Amber Rudd’s aim for a long-term plan for heat; outlined during her “policy re-set speech” last week at the Institution of Civil Engineers in London.
The policy suggestions made by the ADE include better sharing of infrastructure development risk between investors and Government, exempting district heating from punitive business rates which are not applied to other energy networks and extending the role of the Heat Network Development Unit (HNDU) to support the whole development process of district heating.
Tim Rotheray, Director of the ADE, believes there is an “overwhelming desire” among overseas investors to put money into Britain’s heat infrastructure.
"When I speak to long-term infrastructure investors from across Europe, there is an overwhelming desire to invest in UK heat networks, if we can get the right policy framework in place.
"If we can solve this puzzle, there is an enormous opportunity for UK cities, with billions of pounds in local investments to make the UK energy system more productive, more secure and lower carbon. Most importantly it will deliver for consumers, helping to keep their heating costs low.
"The industry's proposals are focussed on driving down costs and building investment confidence to enable the best energy system for Britain's consumers.
