Heat Networks Bill passes final Holyrood stage
A bill to support the conversion of Scottish homes to renewable and low carbon heating has passed its final stage in the Scottish Parliament.
MSPs unanimously backed the Heat Networks (Scotland) Bill, which aims to accelerate the development of heat networks in Scotland, in turn driving down emissions and tackling fuel poverty.
Heat networks are distribution systems of insulated pipes that carry hot water or steam from a central source and deliver it to homes and businesses. They are said to be generally more efficient than individual gas boilers, and can be run from a wide range of renewable and low-carbon sources, including heat extraction from rivers and waste heat recovered from industrial processes.
Energy Minister Paul Wheelhouse claimed that "In the right circumstances, heat networks provide households with average fuel savings of 17%."
The bill creates a new licensing regime to ensure that operators are solvent and fit and proper, as well as driving up standards across the sector. A new consenting system will ensure that new networks are developed where they will have the most benefit and that they are tailored to the needs of an area. It also contains arrangements to protect network users by enabling a transfer of operational rights to ensure sustained supply.
The bill also supports the commercial case for new heat networks by reducing the costs of construction and levelling the playing field with other utilities through the creation of new rights for heat network developers and operators and by identifying the optimum zones for heat networks and awarding them for development through a competitive process.
Mr Wheelhouse promised the Government would continue to engage with fuel poverty stakeholders in the development of the necessary regulations under the bill. "The stronger provisions that are now included on community engagement will help in that regard, and I reiterate that we envisage working with Citizens Advice Scotland in developing the regulations".
For the Conservatives, Alexander Burnett, who has a background in the sector, welcomed the bill but expressed reservations about its implementation, "given the physical complexity of heat networks", along with the interaction of the scheme with the UK scheme for which legislation is still awaited.