The price of District Energy is usually index linked to prices of alternative fuels for the duration of the supply contract. Therefore it can only change at the same rate as other fuels.

Due to fuel flexibility, district heating can shift from expensive fuels to cheaper energy sources, should the need arise. Moreover, the main component of supplying district heating is the repayment of capital which once invested will remain locked.

The LTGHN will reduce carbon dioxide emissions (CO₂) by 56% compared to a conventional natural gas boler.

It is estimated that on an annual basis the Network will emit 0.106 kg.CO₂/kWh for each unit of heat compared with a natural gas boiler which emits 0.240 kg.CO₂/kWh for each unit of heat assuming an 80% efficient boiler.

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.

Yes, and it is often a simple process to install a heat exchanger connected to a network. To save on capital cost, a useful point to do this is when the existing boiler plant needs replacing.

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.

Connected buildings contribute to making London a cleaner place because the air quality improves as building ceases to emit combustion gases, also saving a precious natural resource.

Furthermore, due to CHP and other efficient heat generation technologies, each unit of primary energy is utilised to the maximum efficiency, reducing CO₂ and other emissions.

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.