The primary aim of the Peterborough Accelerated Net Zero (PANZ) project is to support the transition to a low-carbon future by developing scalable, replicable solutions to accelerate the decarbonisation of energy systems. Specifically, the project seeks to enable local authorities to make data-driven, effective decisions that can help deliver Net Zero outcomes. The project focuses on two key areas: the deployment of rural heat pumps in off-gas communities and the expansion of district energy networks into residential and commercial sectors.

The PANZ project is funded by Innovate UK (IUK) through the Net Zero Living programme, this funding supports a variety of activities, including research, development of new business models, stakeholder engagement, and the creation of blueprints for the deployment of heat pumps and district energy networks. It also covers the tools and platforms needed for data analysis and decision-making to ensure the project’s success.

The innovation

This project is pioneering new approaches to help local authorities make informed decisions to accelerate decarbonisation efforts. It focuses on innovative models to overcome challenges in implementing rural heat pumps and district energy networks.

The challenge

The Peterborough Accelerated Net Zero (PANZ) project addresses two significant challenges in advancing decarbonisation efforts:

Rural, off-gas communities face unique difficulties in transitioning to low-carbon heating systems.

Key challenges include:

• Supply chain limitations: Limited availability of heat pumps and skilled installers restricts deployment at scale.
• Cost barriers: High installation and operational costs make heat pumps less accessible for households compared to traditional heating options.
• Infrastructure constraints: Local electricity networks in rural areas may lack the capacity to support widespread adoption of heat pumps.
• Consumer trust and awareness: Residents often lack knowledge or confidence in the benefits and reliability of heat pump technology, leading to low adoption rates.
• Business model inefficiencies: Traditional heating system models do not effectively address the unique needs of rural areas, requiring innovative and tailored approaches to make heat pumps viable.

Expanding district energy systems to residential areas and new commercial markets is essential for achieving local and national decarbonisation targets. However, significant barriers include:

• Investment challenges: Large-scale energy infrastructure projects often struggle to attract investment due to perceived risks, long payback periods, and limited investor understanding of the technologies involved.
• Technical and operational complexity: Ensuring efficient integration of district heating systems in diverse urban and suburban areas requires advanced planning, stakeholder collaboration, and innovative technical solutions.
• Consumer engagement: Lack of awareness and understanding among consumers about the benefits of district energy systems can impede acceptance and adoption.
• Policy and regulatory alignment: Ensuring that district energy systems comply with evolving regulations and align with council priorities adds complexity to implementation.

These challenges are compounded by the urgent need to decarbonise energy systems to meet climate goals, making innovative solutions critical for success. The PANZ project aims to tackle these barriers head-on by leveraging cutting-edge tools, collaborative frameworks, and new business models to enable and accelerate the energy transition.

Resources

Reports: business models, funding mechanisms and consumer acceptance

Business models

Funding Mechanisms