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10:00, 21st February 2017

Value of district heating contracts quadruple in 2016

The value of district heating contract tenders issued in 2016 for the public sector has quadrupled, rising to £350m from just £76m the year before.

The Danish Embassy, which monitors contracts as part of its information service to Danish companies providing services to the UK, estimates that over half a billion pounds of public sector contracts have been awarded in the UK.

Ian Manders, UK energy policy advisor at the Embassy, said: "Yet to appear in the figures are £2 billion plus of new heat network schemes that the UK and Scottish Governments are supporting.

"You could say that district heating is booming in Britain."

The Embassy said the estimates are conservative as market information on district heating is difficult to obtain as there is no central market place, although the UK Government publishes a report from time to time on heat network investment opportunities.

Public sector schemes include social housing, city-centre and campus schemes.

Last month the Building Engineering Services Association announced it will be tackling the "Achilles heel" of district heating networks by publishing a new standard the overall efficiency of schemes.