Heat networks

Specialist heat network legal advice

Heat networks (also known as district heating or communal heating schemes) are an integral part of the UK's energy transition. The combination of low or zero-carbon fuel sources and improved thermal efficiency make heat networks a cost-effective and significant contributor towards decarbonising building heat. Government estimates indicate that 18% of the UK's building heat will need to be provided by heat networks by 2050 to meet net zero targets (up from 2% currently).

The developing regulatory landscape in this area will impose new requirements on operators of heat schemes. This includes: a new authorisation regime with mandated authorisation conditions; heat network zoning; and step-in and 'supplier of last resort' provisions.

How we can help you

Our experts advise all stakeholders in the heat network industry on project origination, implementation and regulation on numerous mixed-use developments. This includes advising on:

• planning considerations;
• site set-up (including long-term resident management company processes);
• procuring and implementing ESCO concessions or contracted energy management arrangements and associated supply agreements;
• waste heat offtake arrangements (including data centres);
• fifth generation ambient heat networks;
• government grant funding advice, such as the Green Heat Network Fund and Home Upgrade Grants;
• new requirements on operators of heat schemes under the Energy Act 2023 framework;
• negotiation and project management of specialist construction contracts; and
• construction, property and commercial disputes arising from the delivery, maintenance, management and decommissioning of the heat network.