The Mayor of London has an ambitious target of reducing London’s CO₂ emissions by 60% from a 1990 baseline by 2025. To help meet that target, the priority is to move 25% of London’s energy supply to local decentralised energy systems by 2025.

Decentralised energy (local generation with district heating where applicable) is seen as a major contributor to meeting this target.

The Part L building regulations has a requirement that the building performance meets minimum criteria for the conservation of fuel and power. The calculation of building performance includes a factor that recognises the type of fuel used to heat the building. District Heating has a lower CO₂ emissions factor than a gas fired heating system as it is connected to a low carbon heat source, and so allows designers and developers greater scope in the design of the building at the same time as ensuring compliance.

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District heating is a proven technology commonly used in many parts of the world. It is not a technology we have to test or to research. It is here today, it works today, and it holds great promise for London and the UK.

District heating systems use steam or hot water produced at a central plant and then pipes that heating out to buildings in the district for space heating and domestic hot water. Consequently individual buildings don't need their own boilers or furnaces, chillers or air conditioners. The district heating system does that work for them.

Decentralised Energy, CHP and district heating, is more environmentally friendly as it reduces the level of carbon emissions for useable energy - electricity and heat. The reduction is made possible through an increase in overall efficiency and a reduction in losses. The illustration below shows how energy is saved and where there is a reduction in losses.

Illustration taken from Powering Ahead: Delivering low carbon energy for London

The LDA is providing a series of support packages to boroughs to carry out energy masterplanning across London. This will build on the London Heat Map which provides a resource of heat demand and supply that can be assessed to identify opportunities for Decentralised Energy projects.

Additional funding from London Councils and Capital Ambition will facilitate detailed heat maps of all boroughs to be completed. The energy masterplanning programme will then provide the support and guidance to define these opportunities and develop them into market opportunities for decentralised energy projects.

Shown in the figure below is a heat map of London, which is being used to identify areas for further investigation.