Date lodged: 7 February 2019
To ask the Scottish Government what measures it will take to increase the scale of development and investment in district heat networks as part of its proposed package of regulation for the sector, and what plans it has to provide direct support to projects to mirror the Heat Networks Investment Project, which will provide funding up to 2022 in England and Wales.
Answered by: Paul Wheelhouse 26 February 2019
A key part of the Scottish Government’s approach to heat network regulation will be the introduction of Local Heat and Energy Efficiency Strategies (LHEES). LHEES will identify the most suitable areas for district and communal heating in Scotland, sending strong signals to investors and the supply chain about the opportunities available.
Subject to Scottish Public Procurement Regulations, local authorities will then be encouraged to offer an 'anchor load' of public sector buildings for supply, providing assurances over expected heat demand.
As part of our forthcoming Energy Efficient Scotland consultation, we will seek evidence from the sector on whether further support can be made available to attract investment in heat networks and reduce the barriers faced in development.
The Scottish Government will continue to provide direct support to heat network projects in Scotland through our District Heating Loan FunD, which has funded 50 projects to date, and our Low Carbon Infrastructure Transition Programme, which offer low-rate, unsecured capital loans and assistance in developing investment grade business cases.