As forecasts suggest household energy bills could rise by as much as 25%, adding to pressure on household finances, energy experts at EnergiRaven are urging policymakers to consider investment in heat network infrastructure alongside the UK's major electricity grid expansion to reduce the price of energy in the long term.
Research by EnergiRaven, using cost calculations from Viegand Maagøe, demonstrates the potential savings at scale, when applied to the proposed 70,000 social and affordable homes set to be built across the UK. The calculations suggest that heating the homes through a heat network supplied predominantly by waste heat, with large air source heat pumps providing top-up capacity, could collectively save residents approximately £142 m annually, or £2.84 bn over 20 years. The calculations show that the heat network approach could also deliver savings of £1.8 bn over 20 years compared with individual air source heat pumps.
The waste heat is produced by industrial sources across the UK such as factories and breweries. Currently the heat is lost in the atmosphere, but by using heat recovery and connecting to a heat network, it can be put to use by providing affordable heat to homes and public buildings.
The heat network model would cost approximately £39.1 m a year, compared with an estimated £181.1 m a year for electric panel heating, an increasingly popular alternative to gas in new housing developments.
Simon Kerr, head of heat networks, EnergiRaven, says: "With energy bills under renewed pressure, we need to think beyond how we generate electricity and consider how we deliver affordable heat to people's homes. The investment being made in the UK's electricity infrastructure is necessary, but it should be matched by a serious commitment to heat networks and the recovery of waste heat. Many communities facing fuel poverty are located close to potential sources of waste heat, including industrial sites, energy infrastructure and data centers. Connecting these sources to homes through heat networks would avoid locking the inhabitants of these new affordable homes into expensive heating contracts. People in need of affordable housing are also in need of affordable heating.”
The warning comes as the government advances plans for £150 bn of grid investment, with five times more infrastructure expected to be built by 2030 than was constructed during the previous three decades. While this investment is essential to improving energy security and reducing reliance on volatile fossil fuel markets, EnergiRaven argues that the way homes are heated must also be part of the long-term affordability conversation.
The findings follow a map released by EnergiRaven and Ordnance Survey, demonstrating a potential route for a Manchester Heat Highway that could heat 85% of the homes in Manchester. The map highlights how existing sources of waste heat and local heat demand could be connected to support more affordable, lower-carbon heating across the city.