Report

Unlocking the economics of clean heat neighbourhoods

This report from UK think tank Nesta explores the reasons behind the challenges faced by shared infrastructure projects across the UK.

Nesta has been researching the ways to roll out area-based approaches to clean heat at scale

One aspect of our clean heat neighbourhood approach is shared infrastructure technologies, such as networked heat pumps, shared ground loops, and communal and district heat networks. These will be the most appropriate clean heat solution for many city centres and densely populated areas. If used appropriately, these technologies are highly efficient, can make use of local resources such as waste heat, and create opportunities for long-term stable income thanks to their long lifespan.

In practice, though, these shared infrastructure projects often encounter financial and commercial difficulties that can slow down their delivery and prevent them from scaling.

We interviewed project leads, policymakers, institutional finance actors and industry experts to understand the reasons behind the challenges faced by shared infrastructure projects across the UK