This morning, I – alongside our own Emily Brewster – attended the City of London Corporation’s briefing on Heat Network Zoning, with contributions from DESNZ, Westminster City Council, the GLA and the Corporation itself.
The session was a chance to catch up with developers, planners and the wider low-carbon supply chain on the opportunities and impact of the Government’s Heat Network Zoning rollout and the future of decarbonising, and what regulations, plans and programs are being developed in the City of Westminster, the Square Mile and beyond.
My key takeaways?
- The legislative framework is now so close to implementation that the market cannot afford to wait. DESNZ confirmed that the Zoning and Rights and Powers Statutory Instruments are expected to move through Parliament this year, but are not yet approved. Once in force, they will give heat networks the same powers as those held by other utilities, helping to make construction, connection and delivery easier and cheaper. That matters because local authorities, developers, utilities and major building owners are already preparing for implementation. The gap between legislation and delivery is narrowing quickly, and the real challenge now is shifting from policy design to market readiness.
- The City of London is becoming an important early test case. With consultation on the Advanced Zoning Programme expected in mid-June, the Square Mile will help show what zoning means in practice for major commercial buildings, dense streets, constrained utilities and long-term asset planning.
- The role of local government will be critical. Zone Coordination Bodies are expected to refine boundaries, coordinate stakeholders and support enforcement, but there are still important questions about how this works across combined authorities, unitary authorities and London boroughs.
- The GLA’s role in aligning sub-regional energy planning with borough-level delivery will also matter. Heat networks will only work if national policy, London-wide strategy and local implementation are properly joined up.
- The biggest challenge may still be to come: engagement. Building owners, occupiers, investors, developers, utilities and communities will all need to understand what zoning means, and what it will cost them, early enough to plan for it.
Heat Network Zoning may sound technical, but its success will depend on whether the organisations affected by it understand what is coming, trust the process, and are engaged early enough to help make it deliverable.
Thank you to the City of London Corporation, DESNZ, Westminster City Council and the GLA for a useful and thought-provoking session.