Enhancing the viability of low carbon heat networks

The project aims to accelerate Belfast's transition to Net Zero by further developing, embedding and scaling delivery pathways for a city-centre heat network and rooftop solar. These were identified as priority interventions during modelling of the City's energy system in the Local Area Energy Plan (LAEP) but are currently constrained by a series of non-technical barriers. These include: market immaturity and readiness for heat networks; the high cost of electricity which makes low carbon heat networks uncompetitive with gas heating; and a lack of integration of heat networks with the wider energy system which serves to underestimate their economic value in delivering the energy transition.

Building on the work undertaken to date, through the Phase 2 funding, the project will scale and embed through five work packages:

1.Further development of the **portfolio PPA business model for rooftop solar** developed in Phase 2 to determine how this approach could reduce electricity costs for a city-wide heat network, thereby lowering costs for off-takers whilst also scaling rooftop solar, specifically testing the appetite of suppliers, developers and grid integrators;

2.An **economic appraisal of 1 (above) the potential of the thermal storage** component of a heat network to balance the grid and address curtailment drawing on the market readiness assessment and a separately funded technical feasibility, to assess the benefit of thermal storage at multiple scales;

3.Development of an **off-takers forum and soft market engagement** to strengthen engagement with key market actors and build investor confidence ahead of procurement of a heat network;

4.Development of a **legal review and a** **procurement roadmap** stress tested with heat network developers and aligned with the future regulations for the heat network;

5\.**UK-wide dissemination and communication** of findings through workshops and a knowledge exchange visit to Belfast to assess the potential to replicate the approach in other parts of the UK.

The project will be led by BCC in partnership with the Energy Systems Catapult, the System Operator for Northern Ireland (SONI), and Northern Ireland Electricity Networks (NIE).