Delivery models for small scale heat network deployment - Net Zero Go
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Delivery models for small scale heat network deployment

This report provides local authorities with a structured assessment of key delivery models for small‑scale heat networks, outlining their roles, risks and responsibilities across the project lifecycle.

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Provided by: Energy Systems Catapult

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Part of: Peterborough Accelerated Net Zero (PANZ)

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Business modelling Heat network

Delivery models for small scale heat network deployment

This report provides local authorities with a structured assessment of key delivery models for small‑scale heat networks, outlining their roles, risks and responsibilities across the project lifecycle. Its findings help councils make informed, strategic decisions by comparing model suitability, highlighting enabling actions, and clarifying the pathways most likely to support effective, low‑risk heat network deployment.

The PANZ project aims to create a comprehensive platform that integrates technical, social, demographic, and economic data to develop effective Net Zero plans. Energy Systems Catapult (the Catapult) is supporting Peterborough City Council (PCC) to explore practical pathways for developing an emerging portfolio of small-scale heat networks, aligned with local decarbonisation objectives and wider place-based priorities.

To support this work, the Catapult has produced this delivery model suitability assessment to support PCC’s approach to small-scale heat network delivery.

This assessment includes:

  • Stakeholder insights that highlight practical and commercial considerations for heat network delivery.
  • An overview of the delivery models available to the Council, including its respective roles, responsibilities, and risk allocations.
  • A comparative appraisal of each model against a defined set of evaluation criteria.

These insights are structured around three focus areas prioritised for their relevance in shaping a robust business case for future project delivery.

This report does not prescribe a preferred delivery model. Instead, it provides a structured, evidence-based assessment of each option’s risks, requirements, and suitability.

Although developed with a focus on Peterborough, the aim of the report is to support informed decision-making by highlighting the tradeoffs involved. As such, it provides useful inputs for all local authorities choosing a delivery approach aligned with their capabilities and ambitions for heat network deployment.

ESC is making this report available under the following conditions. This is intended to make the Information contained in this report available on a similar basis as under the Open Government Licence, but it is not Crown Copyright: it is owned by ESC. Under such licence, ESC is able to make the Information available under the terms of this licence. You are encouraged to Use and re-Use the Information that is available under this ESC licence freely and flexibly, with only a few conditions. Using information under this ESC licence Use by You of the Information indicates your acceptance of the terms and conditions below. ESC grants You a licence to Use the Information subject to the conditions below. You are free to:

  • copy, publish, distribute and transmit the Information
  • adapt the Information
  • exploit the Information commercially and non-commercially, for example, by combining it with other information, or by including it in your own product or application.

You must, where You do any of the above:

  • acknowledge the source of the Information by including the following acknowledgement: “Information taken from Business models and complementary funding mechanisms to support heat pump deployment, by Energy Systems Catapult”
  • provide a copy of or a link to this licence
  • state that the Information contains copyright information licensed under this ESC Licence.
  • acquire and maintain all necessary licences from any third party needed to Use the Information.

These are important conditions of this licence and if You fail to comply with them the rights granted to You under this licence, or any similar licence granted by ESC, will end automatically.

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