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Vattenfall enters UK district energy market

With over 90 percent of homes and commercial buildings in the UK using individual gas boilers for heating, residential and commercial space heating is one of the largest contributors to carbon dioxide (CO2) emissions in the country. For Sweden-headed energy utility major Vattenfall AB, this represents an opportunity to offer district heating and cooling solutions in a currently small market with growth potential.

Vattenfall celebrates 10 years of UK operations this year, initially entering the UK wind power market in 2008. Today the operations comprise almost all business areas including Sales B2B, B2C, E-mobility and Distribution.

“I am very proud of what our UK team has achieved so far. Vattenfall is now working hard to become fossil free in a generation. In the UK, that means helping our customers reduce their carbon footprint and powering and heating their homes and businesses in affordable and ever smarter ways,” said Magnus Hall, President, and CEO at Vattenfall.

Vattenfall is one of Europe’s largest producers and suppliers of heat and by entering a currently small market with strong growth potential, the company says it can bring “extensive knowledge, green credentials, and a customer-centric” approach.

We believe decentralised solutions and district heating and cooling networks will provide stability for integrated heating and power generation and are the door-opener for modern, decarbonised and integrated energy solutions of the future. We see attractive growth opportunities in the UK with large concession-like tenders from municipalities and significant commercial new build activities coming to market in the next 5 years, said Tuomo Hatakka, Senior Vice President and Head of Business Area Heat, Vattenfall.

Heat networks scheme to bridge commercial viability gap

In April 2018, the UK government announced a new heat networks scheme for consumers and non-domestic users such as hospitals, schools, and council buildings to kick-start rapid growth in the emerging district heating sector in England and Wales.

The GBP320 million (≈ EUR 363.6 million) Heat Networks Investment Project (HNIP) launched on October 16 will offer grants and loans to both the public and private sectors in England and Wales, for networks serving two or more buildings. The funding is intended to bridge the commercial viability gap for new projects and to bring together public sectors organisations with experienced private sector operators.

By replicating our partnership model implemented in cities across Europe, we believe we will make a significant contribution to the UK’s plans for low carbon district heating and climate change goals, said Mike Reynolds, Managing Director of Vattenfall Heat UK.

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