Heat Networks: Essential Changes on the Horizon

Hello, Champions of Net Zero!

In recent years, the landscape of heat networks in the UK has seen a rapid expansion, driven largely by government initiatives aimed at bolstering renewable energy sources. However, beneath this promising surface lies a troubling reality. According to the Heat Trust, most heat networks operate at only a mere 35-45% efficiency, a stark contrast to the optimal performance levels of 65-70% that we should be striving for. This inefficiency not only threatens the UK’s ambitious net zero targets but also places the entire sector in jeopardy.

The growth of heat networks is undoubtedly a positive step towards sustainable energy. However, the speed of this expansion is outpacing our capacity to cultivate a skilled workforce adept in the intricate design, operation, and maintenance of these complex systems. Much like a luxury vehicle, which demands regular and expert servicing to maintain optimal performance, heat networks require a similar level of care and expertise to ensure their reliability and longevity.

Challenges in Heat Network Development

The evolution of heat network technology has been remarkable. With advancements focusing on greener, more efficient solutions and a significant shift towards digitalisation and data utilisation, we now have the tools at our disposal to dramatically enhance efficiency, sustainability, and cost-effectiveness. Despite this, the adoption of smart technologies by UK heat network operators remains alarmingly low. This lack of integration could be a contributing factor to the underwhelming performance of many systems across the nation.

When we compare our heat network industry with other sectors such as finance, retail, and manufacturing, the discrepancy becomes evident. These industries have embraced digitalisation and reaped the benefits, while our heating sector lags significantly behind. Furthermore, countries across Europe with more advanced centralised heating infrastructures have shown how effective these technologies can be when applied correctly.

Leading the Charge in Data-Driven Solutions

As specialists in heat networks, it is imperative that we take the lead in adopting intelligent, data-centric approaches that can drive efficiency, enhance reliability, reduce costs, and lower carbon emissions. Moreover, we have a unique opportunity to leverage technology to influence consumer behaviours, foster engagement, and elevate the customer experience within this sector.

So, what does this look like in practice? Let me share some pioneering examples that illustrate the transformative potential of data-driven technologies in the heat network sector.

Innovations Shaping the Future

One of the most significant innovations in the UK heat network landscape has been the launch of KURVE, a web application introduced in 2019 specifically designed for residents on pay-as-you-go billing. This groundbreaking tool enables users to monitor and manage their energy consumption seamlessly, allowing for quick and convenient payments from any internet-enabled device. By providing a level of customer experience and functionality that has long been enjoyed by banking customers, KURVE is instigating a sector-wide shift towards more resident-centric service provision and sustainability.

Remarkably, households using KURVE have reported an average reduction in energy consumption of 24%, thanks to their easy access to real-time usage data. Furthermore, the data generated from KURVE is proving to be invaluable in shaping industry best practices related to sustainability and user experience, benefiting even those who are not direct users of the platform.

Another notable advancement has been the introduction of motivational tariffs in 2023. This variable pricing model, inspired by successful European practices, rewards heat network users who take good care of their heating systems at home, positively influencing the energy efficiency of the entire network. This approach effectively addresses the common concern surrounding communal heating systems where individual heating bills can be significantly impacted by the actions of neighbours.

In Denmark, where heat networks supply 64% of homes, motivational tariffs have seen remarkable success. In the UK, initial findings indicate that 81% of residents have reported lower bills, alongside a staggering 600% increase in engagement with essential activities such as equipment servicing visits. These outcomes highlight the potential for motivational tariffs to transform consumer behaviours and enhance overall system performance.

Harnessing the Power of Digital Twins

Another transformative application of data technology in the heat network sector is digital twinning. By creating an accurate virtual replica of a heating system’s hydronic design, operators can effectively address issues of poor performance. Given that a heat network is an ecosystem made up of numerous interdependent components, any changes made can inadvertently affect the entire system. Digital twinning offers a safe environment to experiment with potential modifications without incurring the costs, risks, or disruptions associated with real-world alterations.

Real-life examples of digital twinning in action include the optimisation of the heat network serving Kew Gardens’ greenhouses and the prevention of an unnecessary and costly engineering project in a 190-unit apartment building in London. Despite its proven efficacy, the adoption of digital twinning in the UK heat network sector remains limited, indicating a significant opportunity for growth.

The Future of Heat Networks

It is encouraging to see that numerous data-driven technologies are now being embraced with promising results. Smart meters, monitoring systems, and pay-as-you-go billing solutions provide residents with real-time data and enhanced control over their energy consumption. Additionally, smart systems that monitor plant rooms and networks can identify faults, reduce inefficiencies, and adapt to demand fluctuations in real time. Cloud-based services further enhance operational efficiency by enabling remote diagnostics and repairs, ultimately leading to cost savings.

Looking ahead, we can anticipate a greater emphasis on integrated heat source optimisation, which will allow for the dynamic selection of the lowest-cost and lowest-carbon options in real time. The visualisation of big data will likely enhance performance monitoring, making it clearer and more effective. Given that housing associations and local authorities are managing heat networks alongside other priorities, tools that simplify complex data will prove invaluable for both operators and customers alike.

Furthermore, the potential for artificial intelligence to play a role in supporting smart information services is on the horizon. However, it is crucial to emphasise that AI will never replace the need for genuine human interaction. The recent energy and cost-of-living crises have underscored the importance of authentic, empathetic customer communication when it comes to essential services such as heating.

Conclusion

As we navigate the complexities of the heat network industry, it is essential that we commit to embracing innovation and leveraging advanced technologies to overcome the challenges that lie ahead. By focusing on data-driven solutions, we can enhance efficiency, improve customer experiences, and ultimately contribute to our collective goal of achieving net zero. The journey towards a sustainable future is a collaborative effort, and together, we can forge a path that not only meets our energy needs but also protects our planet for generations to come.

This article first appeared in the April 2025 issue of Energy Manager magazine. Subscribe here.