The Spending Review has included £300m in funding earmarked to support 200 heat networks across the country.
In response, Association for Decentralised Energy director Tim Rotheray said: “Heat network infrastructure creates stronger local economies, controls energy bills and improves the productivity of our energy system, while meeting our decarbonisation targets at the least cost.
“The money for heat network infrastructure represents a milestone in the development of a long-term strategic framework for heat. Earlier this week, we called on the government to support heat network investments and set out a plan to drive down costs and build investor confidence to enable a better energy system for Britain’s consumers.”
There are currently 180 potential heat network investments in cities and towns across the country, with a potential investment value of £2bn. Fifteen of these networks are currently ready for investment.