Drawing on its experience and innovation across cities such as London, Malmö and Berlin, E.ON has published a proposed roadmap for UK decision-makers to consider, as the country moves from building-by-building energy upgrades to place-based Heat Zones.

The report comes amidst ambitious plans for Heat Zones in the UK as the Government brings forward statutory heat-network zoning in England under the Energy Act 2023 and proposed secondary legislation. By 2050, heat networks in densely populated areas are expected to supply around 20% of UK heat as part of net-zero and energy-security plans.

Distilling the greatest lessons from its decades of experience in London and across Europe, E.ON’s report explains how a supportive regulatory and commercial framework can crowd in large-scale private investment while protecting consumers. It illustrates how coordinated street works can leave streets better than before – improving public realm, drainage and active travel routes – as networks expand. It highlights the need for clear customer propositions that help households use less energy and pay less, alongside programmes that tie investment to apprenticeships schemes and local supply chains, so Heat Zones build skills and social value, as well as infrastructure.

E.ON also explains how city-scale networks in places like Malmö and Berlin are future-proofed to add new low-carbon and waste heat sources – from rivers and wastewater plants to data centres – as demand grows. The paper makes clear how Heat Zones have the potential to deliver a range of benefits – including increased energy resilience, less embodied carbon, and lower energy bills in the long run – for commercial landowners and consumers.

The six lessons

  1. Plan for scale and growth – design the network to cope with city-wide growth from day one, so later phases can connect to heat sources without the need for major infrastructure works.
  2. Anchor heat zones around existing sources – rivers, sewage works, data centres and energy-from-waste can all provide heat energy for local networks.
  3. Create a supportive regulatory and commercial framework – measures such as capital and revenue support, industry cost reductions and a Regulated Asset Base help to accelerate delivery of Heat Zones.
  4. Coordinate street works and public realm upgrades – infrastructure upgrades are the perfect time to improve our streets and public spaces – adding cycleways, drainage and trees – while minimising disruption.
  5. Support and incentivise customers to connect – pair clear connection pathways with propositions that cut consumption and costs.
  6. Harness investment for skills and jobs – link programmes to training, apprenticeships and local supply-chain growth.

Vijay Tank, chief operations officer for UK Energy Infrastructure Solutions at E.ON, said: “Cities create sources of heat everywhere we look. From the local data centre powering your wi-fi, to the nearby sewage works and energy from waste plants, or even the fridges in your local supermarket providing a source of heating – this energy is abundant, but sadly it is too often simply lost to the air.

“There is enough heat wasted in London every year to meet 38% of the city’s heating demands. Harnessing and recycling some of that energy – as we already do through our district heating networks – could keep a city’s homes, businesses, and shops warm without the need to generate any excess energy.

“And if that wasn’t enough, it would be a chance to create tens of thousands of skilled jobs, greener spaces in our cities and secure cleaner and more affordable energy supplies for the future.”